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

Good morning,

In yesterday's PMTJ PERSPECTIVE Section we observed:
"[Following a seemingly failed retest/false breakout,] Price Action continues winding tighter
and tighter into the nose of the Triangle. As the lines converge, the Bulls must now blast
free; otherwise, the upward pressure will dissipate, and, via the swinging door phenomenon,
the Bears will take over the ball."

Well, the Bulls didn't summon the required support, fumbled at the goal line. The Bears
recovered and headed south.

Be Well,

Asher
=] ;-)>
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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 August 19, 2008

[SNIP]

3 = This looks like a 123 "S", but in fact, following a minimum trend, it is a red Bear Dragonfly "P".

D = Large red candle. Per our stop rules, move the profit-locking stop above the high of the candle, greatly reducing the At Risk.

E = Failed test of MA. PMT stop rules advise to move the profit-locking stop above the MA, "free trade" plus.

F = Failed test of MA. PMT stop rules advise to move the profit-locking stop above the MA.

G = Sideways trading tests the MA. MA Resistance holds, for a failed test of the MA. Move the profit-locking stop above the MA.

H = DVS (pink arrow) late in a move is one of our signs of Momentum exhaustion. Long bottom wick is another. So close to the vaguely placed
Historical S/R (aqua dashed line), it is hard to believe the BBs will give up. Expect another desperate stab. Per PMT stop rules, move the
profit-locking stop above the high of the candle (Hint: no farther away than Giveback level.)

J = Black Volume Bar of Death. Desperate strike at the aqua dashed line or S1 retest? As soon as the next candle shows white, recognizing one
of our Exit Now! signals, do it! +/- 4 points Don't neglect to cancel the stop!

Somewhat fitfully, the BBs sneak out for a brief sip of lunch. Boosted by intermittent Bull Volume (blue arrows, = X),
Price Action drifts to a full stop at the S1.

NOTE: The blue arrows turn out to not be TELLs. The first three seem to be TELLs of a late afternoon
Bull assault on the S1. The massive force of final DVS (red arrow) however, is stopped cold at the S1,
only taping a spike-through, white, inverted (Bear) Dragonfly. The implication of all the TELLs thus
negated, the tape now reads "potential failed TTT of the S1; TTT corollary applies and the Primary
Objective is now the aqua dashed line."

4 = Multi-top, failing TTT, finally tapes a red Bear Dragonfly spike and we have a signal.

K = Pulled in on giant red candle, well through the MA (with some negative slippage), advance initial stop above the MA.

L = Large red Bear Dragonfly/failed test of MA. This candle puts our position in violation of PMT Maximum Profit Giveback rules. Mental stop at
Giveback level.

M = Three small white breather candles. The last one puts our position slightly more into Maximum Profit Giveback jeopardy. With no excuse
to move our stop tighter, the rules say to exit now. At least the exhaustion gap paid us a drop of positive slippage before the mid-air reversal.
+/- 4 points

PERSPECTIVE
(Daily, bottom right chart)

Looks like the Bulls couldn't pull of a penetration of the dotted blue line of Historical S/R.
Call that a failed TTT of the base of the Ascending Triangle (lavender lines). As the door
swung the other way, the Bears head south to attempt to overrun the aqua dashed
Historical S/R.

Considering the two unsuccessful stabs at the PL Tuesday, we might even call
a repeat attempt on Wednesday a proper TTT of the aqua line.

REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Tuesday's PMT Chart: