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Posted by Asher on August 27, 2008, 10:11 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
Overall, Tuesday was a profitable, but very painful day to trade.
Looks like we have a Long-term
Sideways Channel re-established (Daily, bottom chart). Floor's a bit
fuzzy.
******************************
E-mini
Tuesday August 26, 2008
[SNIP]
2 = Second chance 123, white Bull Dragonfly off the Close. Heh! That
becomes a self-confirming set of Signals.
B = Pulled in on a large, DVS-driven (pink arrow) white candle.
Initial stop advances under the low of the candle, for well-controlled
At Risk.
Rather scary mid-air stall, but the MA Support holds.
C = Large white candle. Per our stop rules, move the profit-locking
stop under the low of the candle.
D = Large white candle/failed test of MA. Per PMT stop rules, move
the profit-locking stop under the MA.
Pivot test coming. Prepare for emergency Pivot Scalp type exit if
strong Resistance is encountered.
E = Boy, was that not worth saying! DVS (pink arrow) rockets a
gigantic white candle, which rips easily through the Pivot, and
stretches all the way up to
the Mid. Lock it in!
Our position is dangerous violation of the Pivot Magic Trading Maximum
Profit Giveback rules. Mental stop at Giveback level.
NOTE: Once again today the ABS is bloated, so, in order to avoid
getting stopped out at
every Price Adjustment, consider expanding the Maximum Profit Giveback
(MPG) and
stop placement spacings.
F = Perfect! A white Spinning top candle (exhaustion/reversal sign)
atop a Twin Towers Volume pattern (pink arrow). Stall sag is coming
now; very likely
to be a Pivot test. Call this a large white candle and move the
profit-locking stop under the low of the candle.
Spinning red top. Pivot test probable. Cancel-Replace, Exit Now!
+/- 4.75 points
3 = Double 123 "S" signals, one above, and one below the Pivot.
G = Volume burst (pink arrow, nice, but not mandatory for a Bear
entry) blasts a giant red candle, pulling us in. Per the rules,
advance initial stop above the
high of the candle.
NOTE: In spite of the rules, my personal instinct here is to jump the
stop to "free trade". (This IS discretionary trading!)
H = Nuts! Exhaustion gap and a large red Spinning top candle
(exhaustion/reversal sign), atop a Twin Towers Volume pattern (pink
arrow). A stall sag is
coming now; very likely to be a Pivot test. Sound familiar?
Per our rules (this option is now included in the Pivot Magic Trading
course updated version), late in a move, with exhaustion signs
everywhere, move the
profit-locking stop into the gap. Prepare for one last strike to tap
on the Close, i.e. Prepare to Pivot Scalp exit.
While we preparing for the anticipated one final strike at the Close,
we were taken out at the stop. +/- 1 point
[SNIP]
RECONOITER
We now are pretty certain that an entry off the Pivot is unlikely
today.
Bear TELLs abound (= J, blue arrows):
* Final DVS push before lunch
* Protective Volume bulges to keep Price Action below the Pivot
* A DVS drive to actually slam into the Close
* A group of young Turks jump the gun with a large red Bull Dragonfly
spiking south on DVS.
A late afternoon Bear move is being planned.
K = Somewhere in this maze it becomes clear to readers of the tape
that it will be almost impossible to accurately differentiate between
a signal and a trap.
Time to shut down the monitor and lick our wounds.
[SNIP]
REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic082608.gif
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