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Posted by Asher on July 9, 2008, 5:10 am
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT
Good morning and welcome back,
Nice large-range day. If you stuck to the rules, it was relatively
easy to
gouge a big chunk out of the late afternoon move. Hope so!
Tonight is my daughter's wedding and Thursday is my son's graduation,
so I
don't promise to see you on Thursday. If I sober up in time, maybe.
Be well,
=] ;-)>
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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Tuesday July 08, 2008
Morning session opens at the Close, wobbles a bit, and ducks under.
No clear self-confirming pair of signals, so we are in a holding
pattern
throughout the morning.
NOTE: Even the small candles are large. ABS is bloated, so to avoid
getting stopped out at every Price adjustment,
expand the Pivot Magic Trading Maximum Profit Giveback and stop
placement rules (should we ever actually get in!)
1 = High-Volume 123 of the Pivot. Were this not mid-lunchtime, and
part of a series of Bull TELLs (blue arrows), we might have been more
interested in entry. We did however learn of the BBs plans for late
afternoon!
2 = Double top of the Pivot. Just barely enough Price Window for a
Pivot Scalp to the Close. (Personally, I'd let it go, but it is a
valid entry
signal if you apply the Pivot Magic Trading aggressive set of entry
techniques, i.e. entry as soon as the Pivot is crossed. Initial stop
above
the Pivot.)
123 test Pivot Support-turned-Resistance, and the move is on.
B = Large red candle hits the Close. Pivot Scalp exit. +/- 3.5
points
3 = Double bottom off the Close. Even were there exciting Volume
support, which there isn't, the Price Window to the Pivot is too small
to
enter even for a Scalp trade.
4 = Volume comes to life, and just as our TELLs suggested, the Bulls
drive Price Action through the Pivot with an "S" 123 continuation.
Initial
stop goes under the Pivot.
C = Large, white, inverted (Bear, not a good sign) Dragonfly through
the Mid. A little worried, per our stop rules, aggressively move the
profit-locking stop under the Mid.
D = Turns out there was nothing to worry about as a giant white candle
crosses back into the Long-term Sideways Channel (LT SW Channel,
aqua lines formed at the end of last week, Daily, bottom chart.
Notice that the channel floor is also the previous contract low from
mid-April.)
The position is in violation of our Maximum Profit Giveback rules, so
happily move the profit-locking stop under the aqua line.
E = Breakaway gap and large, white, inverted (Bear) Dragonfly. Our
convention says (as I've mentioned before, this is my personal
custom,
soon to be added to the course book as a rule since it occurs so
often) to move the profit-locking stop into the gap.
F = Large white Bull Dragonfly. That's more like it! With the
position once again in violation of Maximum Profit Giveback rules,
move a
mental profit-locking stop to Giveback level.
G = Large white Spinning top/ possible Dragonfly. Per our PMT stop
rules, move the profit-locking stop under the low of the candle.
H = As we approach the Primary Objective, R1, a DVS (pink arrow,
exhaustion signal) and a small gap (exhaustion gap) drive a large
white
candle within striking range of the R1. Per our stop rules, move the
profit-locking stop into the gap. Consider Pivot Scalp type exit.
J = Doji dagger stabs at the R1, accompanying a large Black Volume Bar
of Death (pink arrow). If you didn't exit when hit, the instant the
next
candle shows red is a classic Exit Now! +/- 13.75 points
A few minutes ahead of schedule, the Price Action forms the classic V
check-mark of EOD Hiccup, and the Bulls squeeze out half-a-dozen more
points, without us!
[SNIP]
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic070808.gif
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