Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

PIVOT MAGIC JOURNAL - EXCERPT

Good morning ,

A lot of the PMTradable action was cut short during the 5 hours of gentle, mid-day wafting up and down,
but we did get a couple of nice bites out of the large-range, violent Bull assault on Thursday.

TGIF!!!

Be well,

=] ;-)>
******************************

Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************

E-mini
Thursday June 05, 2008

1 = Thursday morning opens with an Anomaly (Overnight, bottom left chart), white Bull Dragonfly, "P" signal, off the Pivot. Volume (pink arrow) is nicely supportive.

A = Entry on large white candle permits us to advance the initial stop under the low of the candle, for controlled At Risk.

B = Large white candle. Per our rules, move the profit-locking stop under the low of the candle, locking in profit!

C = Very large, high-Volume (pink arrow) candle crosses the R1. Per our stop rules, move the profit-locking stop under the R1. This candle also completed an "S"
123 continuation entry signal. Add contracts, or enter if you held back at the Anomaly, = 1.

NOTE: Once again, the ABS is bloated today. To avoid getting stopped out at every Price adjustment swing,
consider expanding the Maximum Profit Giveback and stop placement spacings.

D = Large white candle easily crosses the Historical S/R (dotted green line). PMT stop rules advise us to move the profit-locking stop under the green dotted line.

E = Large white candle. Move the profit-locking stop under the low of the candle.

F = large white candle. Tighten the stop a bit more; move the profit-locking stop under the low of the candle.

G = Second red close below the MA would be an exit signal. With our stop so nearby, only a very brisk cancel-replace would get you out early. Mucho dangerous
move. Otherwise, we are taken out at the stop. +/- 7.75 points

For the next five hours, Price Action drifts sideways. A couple of Bull Volume bursts (= X, blue arrows) press the drift north, through the R2. The pre-emptive
green Volume bars also constitute TELLs, advising that the BBs probably have Bullish plans for the late afternoon.

H = Sudden, massive DVS (pink arrow) drives a giant red candle to the dotted green line. Wonder what that was about? I smell a trap!

2 = The tape displays sort of a Doji Sandwich. It's mid-air, so, although this reinforces the warnings from the earlier TELLs, we don't even consider entry.

3 = Slight breakaway gap, as Price Action tapes a 2-candle 123 "S" through the R2.

J = We get pulled in on a giant, DVS-driven (pink arrow) candle through the next higher Historical S/R (solid green line). Per PMT stop rules, this permits us to
advance the initial stop under the green line.

K = Trading has entered the EOD Hiccup Danger Time Zone.

No rule here, but this pair of Bear Dragonflies are a sure sign of failing Momentum. This might be an opportunity to exit, surely if the MA Support doesn't hold.
(On the other hand, the primary objective, R3 is sooooo close.)

L = Well, if you had nerves of steel it paid off, as the MA test failed. Our stop rules advise to move the profit-locking stop under the MA, and exhale!

Next comes a Black (DVS) Volume Bar of Death (pink arrow). Is this it? Will the advance fail without even a valiant stretch to the R3? Prepare to exit instantly
on red! Interesting. The Bulls do continue trudging north toward the R3.

M = Large white candle stretches to tap on the R3. Twin Towers (pink arrow) warns of stall/sag. Pivot Scalp exit. +/- 7 points

[SNIP]

AS ALWAYS, BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Thursday's PMT Chart: