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

Good morning ,

Slow morning leading up to the Bear's massive charge south. Ended in only a gentle tap
on the plum line (Daily, bottom chart, Historical S/R). Couple of good PMT trades made
us all happy!

Get ready for a twister. Wednesday will be full of surprises, fun for the whole family!

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E-mini
Tuesday June 03, 2008

[SNIP]

3 = Volume comes to life (pink arrow), as the BBs return from conspiring over martinis. Price Action plunges viciously through the Pivot and Close.

NOTE: The Volume picture is powerful enough to warrant entry as soon as the Close is crossed, without
waiting to exit the "green fog". Nonetheless, risk-conservative traders may well have waited until the
Price Action is in the clear, below the fog.

F = DVS (pink arrow) generates a giant red candle. Pivot Magic Trading Maximum Profit Giveback rules are either violated or soon will be. Jump the
profit-locking stop to "free trade" plus a tik.

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

H = Large red candle completes a mid-air 123 continuation, and our position is in violation of the PMT Maximum Profit Giveback rules. Mental stop at
Giveback level.

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

K = Second healthy red candle closes below the MidW. Per our stop rules, move the profit-locking stop above the MidW.

L = Very large red candle puts our position in Maximum Profit Giveback violation. Mental stop at Giveback level.

M = Large (2.5 point) inverted (Bull) Dragonfly. Only two ways to have played this one:

* Experienced readers of the tape observe that the S1 is also a major level of Historical S/R (plum line),
and assumedly a rock-hard Support floor. They exit as soon as the Price Action pulls back above the S1.
+/- 13.5 points (assuming conservative entry below the fog)

* Large red candle invites us to move the profit-locking stop above the high of the candle.
The next (white Bear Dragonfly) candle tests the stop so when the candle following shows white, Exit Now!
+/- 12.25 points

Either call was legit and nicely profitable.

[SNIP]

Trading is entering the EOD Hiccup Danger Time Zone. Be prepared!

S = Long, white, wispy, Bull Dragonfly, and our position is in Maximum Profit Giveback violation. Mental stop at Giveback level. DVS and strange
candle at EOD Hiccup Danger Time are serious warning signs. Hope you have your exit order ready to send in an instant! READY!

T = There it is. Black Volume Bar of Death (pink arrow). SET!

Next candle shows red. GO! +/- 8.75 points

Classic V-shaped EOD Hiccup (lavender lines) sees Price Action dive back to Monday's Low by EOD.

[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: