Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC JOURNAL - EXCERPT

Good morning,

Some interesting discussions today, even though the trading was pretty treacherous on Rollover Thursday.
Sorry about all the callouts on the chart, but that's the best I could do. In fact, I removed quite a few!

TGIF!!!

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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
Thursday June 12, 2008

1 = Morning session opens gap-up with an Anomaly "P" (Overnight, bottom left upper chart) through the Pivot. Volume is massive (pink arrow), confirming. Aggressive entry was possible, but personally I'm too conservative to enter aggressively on the first candle of the day.

A = On the other hand, as soon as this white Bull Dragonfly clears the high of the opening candle aggressive entry is a real option. Initial stop can be
advanced under the low of the candle.

B = The stop is too far away from the Price Action, so call this a (just barely) large white candle and move the profit-locking stop under the low of the candle.

C = Small gap (exhaustion sign this late in the move) precedes a large white inverted (Bear) Dragonfly. The long spike through the R1 is also a sign of
exhaustion. Per our PMT stop rules, move the profit-locking stop under the R1. Momentum failure is coming. Prepare to exit.

Next candle is a Higher-High-Turns-Red. Exit Now! Fire off a very brisk Cancel-Replace order as soon as the candle shows red. +/- 6.75 points

[SNIP]

4 = Third lower high (green line) for a failed TTT (Third Time Through)/Double top. Pivot retest is a good bet.

H = Pulled in on this large red candle, with initial stop advanced above the MA.

J = Failed test of MA. Tighten the stop a drop, above the MA.

K = Large red candle. Per Pivot Magic Trading stop rules, move the profit-locking stop above the high of the candle.

L = Large red candle. Move the profit-locking stop above the high of the candle.

M = Failed test of MA, as a very large red candle plunges almost to the Pivot. Our position is now in violation of the Pivot Magic Trading Maximum Profit
Giveback rules. Mental stop to Giveback level.

N = Black Volume Bar of Death (pink arrow) as Doji candle spikes through the Pivot. If the Bears don't instantly recover Momentum, prepare for Pivot
Scalp exit.

Another, smaller, Doji spikes through the Pivot. Exit the instant that Price Action crosses back above the Pivot. +/- 6.25 points

[SNIP]

Classic V-shaped checkmark EOD Hiccup (lavender line) drives Price Action back through the Close to EOD at the Pivot.

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: