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

Good morning,

Just as I "promised" in yesterday's PMTJournal, Monday WAS fun.
Wasn't it?!?

Starting to notice the recurring theme?
Plunging markets = Bloated Average Bar Size (ABS).
Adjust for it.

And Tuesday?

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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
Monday July 14, 2008

1 = Morning session opens with a kickoff Anomaly from the R1 (Overnight, bottom left chart).

A = Entry on large red Bear Dragonfly. Initial stop gets advanced above the high of the candle.

B = Large red candle through the MidW. Per our stop rules, move the profit-locking stop above the MidW, reducing At Risk almost to zero.

C = Small breakaway gap and a large red spinning top. Per our rules, move the profit-locking stop above the high of the candle. Alternately, per my custom,
move the profit-locking stop into the gap. And we're in the money!

D = Large red candle puts our position in violation of the Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at Giveback level.

NOTE: As is often the case in a recession, the ABS is bloated. To avoid getting stopped out at every
Price adjustment, expand the Maximum Profit Giveback and stop placement spacings.

E = Large red candle puts our position in violation of the Pivot Magic Trading Maximum Profit Giveback rules. Mental stop at Giveback level.

F = Large red inverted (Bull) Dragonfly spikes through the Pivot.
Two ways to play this:

ONE

· Exactly at 10:00 Reversal time

· DVS well into the move (pink arrow) implies exhaustion.

· Pivot is a serious PL. Support is likely to hold.

Exit as Price Action crosses back above the Pivot. +/- 9.75 points

TWO

· Per our regular stop rules, move profit-locking stop above the high of the candle.

· Plan to exit if the Pivot holds again.

· Let profits ride if the Bears continue on through the PL.

Got stopped out on the next candle. +/- 7.75 points

Confusion reigns for the next hour and a half.

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)

For the time being, I've dropped the Historical S/R (LT SW Channel) lines from the chart. I've done this to emphasize
the most overwhelming characteristic of the Daily chart, the Bear Trend (green trend channel lines).

[SNIP]

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Monday's PMT Chart: