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

Good morning,

Lots of TA today! Enjoy all the lines!!!

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E-mini
Wednesday August 06, 2008

Wednesday morning session opens a drop below the Close, dips, and hovers for the first hour.

1 = Sudden, massive, Bear Volume drives Price Action within range of the Pivot for a Double Bottom "P". With nice Volume support (pink arrow), Price Window
to the Close is open just a bit more than required by PMT Scalp trade criterion.

A = Breakaway gap, and large white candle pulls us in. Initial stop at the MA seems reasonable.

B = Large white candle. Whereas normally, per Pivot Magic Trading stop rules we would move the profit-locking stop under the low of the candle, this time,
that placement will leave our position in PMT Maximum Profit Giveback jeopardy. Mental stop to Giveback level.

C = Sudden, large DVS (pink arrow) drives a large white candle into the "green fog", desperate to tap on the Close, and there it hovers.

D = A couple of possible readings here:
* As soon as the next candle stabs and retracts below the (shows red), Pivot Scalp Exit Now! +/- 4 points

* Feeling greedy? Hesitate, and take heart from the next two candles. A pair of Bull Dragonflies, inch across
the Close, still hidden in the "fog". Volume is still up, so they Bull Dragonflies could be read as encouraging. Remain
alert, fear getting stuck in the "green fog" Ambush Zone for a lunchtime sideways drift, but hold for a confirming
exit signal.

White inverted (Bear) Dragonfly spikes into the battlefield, but closes back in the "fog". That is a final exhaustion symptom.
When the next candle shows red, Exit Now! +/- 4.5 points

Was the 0.50 point worth the ulcer?

During the next hour-long stretch of trading, the tape clearly displays a continuation of Tuesday's trend (green channel lines, 10-Minute, middle chart).
By 2:00 Price Action has tested both the ceiling and floor of the trend channel, and furthermore has taped a large Ascending Triangle (lavender lines).

NOTE: Immediately recalling yesterday's discussion of the Ascending Triangle formation on the Daily tape,
glance down (Daily, bottom chart, lavender lines), and notice that the angled lavender line is tracing the
same path as both the bottom2-day trend channel (green) and intra-day Ascending Triangle (lavender)
lines. In fact, the base line too is the same as the base line on the Daily (bottom chart, light blue solid
line). This congruence will definitely influence the afternoon Price Action!
E = TELLs galore!

* Four Bull spurts (blue arrows). Bull tendency.

* Ascending Triangle. Bull tendency.

* On almost no Volume (red arrow), Price Action climbed to test the base of the Ascending Triangle.
This is particularly impressive when compared to the previous, huge Bear Volume (black arrow) that drove
Price Action only a drop farther in the opposite direction. Bull tendency.

* Double bottom off the Close, = 2, at the lavender base line. Wound pretty tightly into the point of
the intraday Triangle. Bull tendency.

2 = Volume (pink arrow) isn't immediately very impressive.

F = Large white candle blasts through the light blue/lavender/High, would otherwise pull us in.

G = DVS, and this 2-candle 123 pulls us in, possibly with extra contracts! The path to the R1 objective is potentially superseded by Resistance at the
trend channel ceiling (green line). Initial stop may be advanced under the low of the candle.

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

J = DVS (pink arrow) generates a large white candle. PMT stop rules say, move the profit-locking stop under the low of the candle.

K = More super-Volume, and another, larger, white candle. This time a stop under the low of the candle still leaves the position in Maximum Profit
Giveback violation. Mental stop at Giveback level.

L How many reasons to Exit Now?!?

*** Resistance supreme:

* Careful examination of the Daily tape (bottom chart) reveals a secondary
Historical S/R level (light blue dotted line).

* This line is thus potentially the true base of the large Daily Ascending Triangle.

* This multiple-Resistance coincides with the 2-day Trend Channel ceiling.

*** Inverted (Bear) white Dragonfly stabs feebly to tap on the R1. Exhaustion sign.

*** Huge mid-move DVS (pink arrow). Exhaustion sign.

Still waiting?

*** Next candle turns red.

*** Next candle is another white, inverted (Bear) Dragonfly, stabbing even more weakly at the R1.

*** Next candle is a red Bear Dragonfly.

Enough!!! +/- 5.75 points

EOD Price Action comes to rest on the 2-day Trend Channel floor.

PERSPECTIVE
(Daily, bottom chart)
As we discussed in the commentary above, Price Action stalled at a slightly higher Historical S/R (light blue dotted line)
than we anticipated. Although the Third Time Through (TTT) attempt at the base of the Ascending Triangle has neither
succeeded nor failed. A bit of a pullback south, to get a running start for the final Bull assault seem a serious possibility.
From the Daily time-frame perspective, there is still plenty of room in the nose of the Ascending Triangle (lavender lines)
for the Bull pressure to wind tighter.

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

Wednesday's PMT Chart: