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

Good morning,

On Moveout Monday the Bears headed for the dotted aqua line with a fierce growl.
They only made it half way to the LT SW Channel floor, but they sure gave us a ride
for our money (plus ulcers!).

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E-mini
Monday August 04, 2008

1 = Wiz-bang Anomaly (Overnight, bottom left chart) off the LT SW Channel ceiling (aqua dashed line, now a Primary PL)/Close. Volume is
booming as well. Aggressive entry still gets us in a bit late on this monster candle. By the time it completes, initial stop advances to
"free trade"/Maximum Profit Giveback level.

A = Large red candle and our position is once again in violation of Pivot Magic Trading Maximum Profit Giveback rules.
Mental stop at Giveback level.

B = DVS (pink arrow) generates a red inverted (Bull) Dragonfly stabbing through the Low, almost to the S1. Per our stop rules, move
profit-locking stop above the high of the candle. This is a double sign of failing Momentum, so think Pivot Scalp exit.

C = Large red candle breaches the Low and stretches to tap on the S1.

Two choices:

* Pivot Scalp exit when the S1 is touched, or immediately as Price Action recoils.
+/- 6 points (proper risk-conservative choice)

* Per our stop rules, move profit-locking stop above the Low and get stopped out on next candle.
+/- 4.25 points

[SNIP]

NOTE: The ABS today is again bloated, so, in order to avoid getting stopped out at every
Price Action swing, expand the Maximum Profit Giveback and stop placement spacings.

[SNIP]

5 = Lovely, full-sized Double bottom pattern off the S1. Volume however is still out to lunch. We let it pass, only to watch Price Action head
for a retest of the aqua dashed line, without giving us a second chance.

6 = Aqua line tap, and 2-bar "P" Signal.

K = Pulled in on a failed test of MA. Not only is an inverted Dragonfly not a great continuation sign, but we are still skittish from our morning
buffeting. Immediately move a stop above the MA.

L = Large red candle (actually, average for today, but we're looking for any excuse to protect our position). Move the profit-locking stop down
a drop, above the high of the candle.

N = Giant red candle. Volume continues to build (pink arrow). Our position is in violation of the PMT Maximum Profit Giveback rules. Mental
stop at Giveback level.

P = Large red candle through the Low slams against the well-proven S1. Per our stop rules, move the profit-locking stop above the Low. EOD
Hiccup Danger time is upon us, so prepare to exit briskly should S1 Support hold.

Q = Support holds. Tape displays a Lower-Low-Turns-White, one of our classic Exit Now! signals. +/- 6.25 points

[SNIP]

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

Monday's PMT Chart: