|
Commodity and Futures - Physical commodity and financial futures markets.
|
|
|
|
|
Posted by Asher on October 22, 2007, 7:43 am
BS"D
Pivot Points
Learn to Read the Tape
Exploit Pit Pivot Points
KISS Daytrading Course
******************************
PIVOT MAGIC JOURNAL - LITE
Good morning,
Very profitable large-range Bear plunge Friday.
What will Monday bring?
Be well,
=3D] ;-)>
******************************
BS"D
Pivot Magic Trading
First rule:
"=2E..Any time you don't know what is happening, get out!"
******************************
E-mini
Friday October 19, 2007
Morning session opens gap-down at the S1, and the day's plunge
begins!
Too bad there was no Anomaly signal at the open. Sigh!
1 =3D Doji sandwich forms out of a 123 off the S2. Reversal is spot on
the 10:30
Reversal Time line. Good confirmation.
Aggressive entry was called for during the last minute of the candle.
Large red
candle permitted initial stop to be advanced above the high of the
candle.
Experienced traders were more aggressive yet, moving the stop to "free
trade" and
then yelling, "Alright!!!"
A =3D Another large red candle/failed test of MA. Single candle put our
position in
immediate violation of the 2-Point Maximum Profit Giveback rules. Per
our rules,
move mental profit-locking stop to the Profit Giveback level.
NOTE: Already today it is clear that the ABS is larger
than 1.5 points; so consider a slightly larger Profit
Giveback margin.
B =3D DVS-driven (middle chart) giant red Marubozu (full-bodied candle
without wicks).
=B7 DVS indicates possible Momentum exhaustion.
=B7 Will the troops rally into the hole punched by this sumo candle?
=B7 S3 retest may follow.
All serious considerations, because this single candle puts our
position in
violation of the Profit Giveback rules as well (even if we stretch it
to 3 points).
With Mental stop at Giveback level, prepare to exit instantly if the
next candle
shows white. Which it does immediately! +/- 6 points
2 =3D Doji Sandwich off the S3. Doesn't prove.
3 =3D Second attempt as S3 Support-turned-Resistance holds.
4 =3D Failed TTT. Even if the Price Action only retests the previous
low of the day
(dotted lavender line), the Price Window meets our criterion. Volume
surges (middle
chart), and we are pulled in. Place initial stop above the failed
test of MA for
reduced At Risk.
C =3D Half way to the dotted lavender line. Risk-conservative ole me,
I'd employ an
Advanced Scalp 3-5 stop opportunity, and move the profit-locking stop
to "free trade"
plus a tik.
D =3D DVS (middle chart) tapes a large red candle, closing smack on the
dotted lavender
line. Per our stop rules, quickly move the profit-locking stop above
the high of the
candle.
Stall at the lavender dots continues. Start worrying and prepare your
exit order.
E =3D Not very large, but under the circumstances this is a Black Volume
Bar of Death
(middle chart). Retest of S3 is probable. Exit Now! +/- 5 points
5 =3D A successful TTT of the lavender dotted line is likely after the
Bull attempt
falls short. We spot here a special "S" signal, a "P" off the MA.
We're pulled in,
and move our stop down above the high of the next red candle (blue
arrow).
F =3D Large red candle/failed test of MA and the lavender dotted line is
crossed. PMT
rules tell us to move the profit-locking stop above the MA, "free
trade" plus.
G =3D Large red candle. Per our stop rules, move the profit-locking
stop above the
high of the candle.
H =3D Large red Marubozu/failed test of MA. Will the troops rally into
the breach?
Single candle has put our position in violation of the Maximum Profit
Giveback rules.
Mental stop at Giveback level. Prepared to exit.
Bulls continue south, but stall briefly, but the Giveback level is not
tested.
J =3D Failed test of MA. Happily scoot the profit-locking stop above
the MA.
K =3D Large red candle. Our rules tell us to move the profit-locking
stop above the
high of the candle.
L =3D Another large red candle. Once again, move the profit-locking
stop above the
high of the candle.
M =3D EOD hiccup Danger Time and Momentum is lost with a red tipped
Doji. Exit Now! +/- 15 points
N =3D Too bad (this time, but don't count/gamble on it happening
regularly), cause
the Price Action forms the classic V shaped EOD hiccup, Bear
continuation for
another half dozen points.
Still, 15 points is not THAT disappointing, is it?!?
PERSPECTIVE
(Daily, bottom right chart)
I feel a bit embarrassed to mention that Price Action had
definitively exited the floor of the LT Trend Channel
(green channel lines).
Will the market now breathe following such a large move?
If not, think "Reversal".
(Monthly, bottom left chart)
I have included this chart in response to the "Market is
Crashing" hysteria that is being bantered about following
Friday.'s plunge.
X =3D The month isn't yet over so I had to draw (red candle)
October (so far) manually.
This chart should help give us a bit of perspective.
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=3D] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic101807.gif
|
| Similar Threads | Posted | | Pivot Points define the move, AGAIN! | October 18, 2007, 10:33 am |
| Daytrading Pivot Points - Move Up or Fall Down - PIC | April 14, 2008, 8:43 am |
| Day Trading Pivot Points - Pivot Scalp Exits - CHART | May 23, 2008, 8:24 am |
| Pivot Points - Up Up and Away - Chart | July 9, 2008, 5:10 am |
| Daytrading Pivot Points - Let Profits Run - CHART | May 2, 2008, 9:18 am |
| Pivot Points - Day Trading A Twister - CHART | June 5, 2008, 9:59 am |
| Pivot Points - LT SW Channel Re-establishes - CHART | August 27, 2008, 10:11 am |
| Daytrading E-mini Pivot Points - CHART | September 23, 2008, 12:20 pm |
| Daytrading Pivot Points - Fibonacci Channel - CHART | December 21, 2007, 8:45 am |
| Daytrading Pivot Points - Black Bar of Death - CHART | April 7, 2008, 8:41 am |
|
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap