BS"D

RULES AND CAVEATS

First rule:
"...Any time you don't know what is happening, get out!"
Pivot Magic Trading Course
http://www.supportandresistance.com/Asher/index.html

MARKET IN REVIEW - LITE
Wednesday (02 June 2004)
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At about 9:00 AM, the overnight trading reversed, just above the R1.
Morning session opens slightly below the R1 and Price Action continues
down toward the Pivot.

1 = 123-failed test of Support-turned-Resistance at the High. This
takes us into the blind ambush area, the "green fog" around the Close.
The price Window to the Pivot is too small to take a trade even as
Price Action clears the south side of the foggy zone.

MORE ABOUT VOLUME
A = Green Volume spike (middle chart). Fine example
of a desperation spike. Don't be confused by the
color (bullish). The desperation attempt was bearish
to the Pivot/Historical S/R (powder blue line).

PERSPECTIVE
(30-Minute, bottom right chart)
This higher time frame affords a bit of perspective
for this Historical S/R (powder blue line). Notice
how frequently and powerfully it has influenced
historical Price Action.

2 = Triple DT bottom off the Pivot/Historical S/R. Entry on such an
"S" signal would be almost mandatory (look how sharp it appears on
the 10-Minute, bottom left, chart), except for the proximity of the
proven S/R at the Close, and of course the funky Volume situation at
this hour of the day.

B = Large, higher low, failed test of MA, 123-continuation succeeds to
penetrate the Close. Volume (middle chart) peaks and dies. We wait.

NOT A PMT BEGINNER'S TRADE
FOR ADVANCED PM SCALPERS & EDUCATIONAL PURPOSES ONLY

3 = Finally a signal. The Price Window is too small for PMT,
risk-conservative, trading! Volume seems to have resumed however, so
this would be a most inviting entry for a PM Scalper. Actually, Volume
resumed, took a breath and exploded (middle chart), taking the Scalper
north with it!

C = Breakaway gap. In retrospect, this gap encourages interpreting the
previous candle as a 2nd healthy white candle closing above the High.
Move profit-locking stop under the High, reducing Undefended At Risk.

D = Giant white candle smoothly crosses minor obstacles at MidW and HighW.
We have arrived at the initial objective, R1. Momentum is still strong.
Aggressively, Move profit-locking stop under HighW.

E = Giant white candle spans the R1-HighM Window. Move profit-locking
stop under R1. Eyes open for any chance to move stop tighter to lock in
profit still lying on the table.

4 = First, a desperation spike (middle chart) as Price Action struggles
in vain to attain R2. Volume next drops a bit, resulting in a wispy,
small-bodied candle, stalling above HighM. Then Volume abruptly drops
off and reverses to test R1. Exit. 4.25 points

5 = Second chance if didn't exit on = 4.

Price Action dribbles down to the R1 where it settles for EOD.

Bull Dragonfly Doji day.

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.supportandresistance.com/Asher/index.html

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