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

Good morning and welcome back,

In an attempt to fix the mess they made, the Fed overreacts,
dramatically dropping the interest rates, which results in
an almost 70-point range day in the S&P.

We got a few very decent bites, but the enormous Average
Bar Size (ABS) caused some wicked swings, repeatedly
forcing us out mid-move.

Still and all, not a bad day back in the saddle!

Be well,

=] ;-)>
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BS"D

Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
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E-mini
Wednesday January 23, 2008

. . . [SNIP} . . .

NOTE: From the opening candle on, we observe that the ABS today is huge. Maximum Profit
Giveback will be expanded to at least 3.5 - 4.0 points (and we might even want to pull our
stops back an additional 0.25-0.50 points as well); Otherwise, we stand to get stopped out
prematurely on every adjustment.

. . . [SNIP} . . .

5 = This one, on the other hand is a beautiful "P" signal. It invites aggressive entry
technique above the Pivot. Because it is a large candle through the Pivot, we are
permitted to advance initial stop under the Pivot. Prepare to Pivot Scalp exit at the
Close.

H = Volume picks up (middle chart) with a DVS to support entry. Gigantic white candle
blasts easily through the Close for a TTT (Third Time Through), converting this from Pivot
Scalp trade to a PMT trade. Our PMT stop rules say to move profit-locking stop under the
Close.

J = Large white candle violates Giveback rules. Mental stop at Giveback level.

K = Large white candle through LowW. Per our stop rules, move profit-locking stop under
the LowW.

L = Huge white candle blasts through the High. Move profit-locking stop under the High.

M = Large white candle closes at the R1. It is now EOD hiccup Danger Time. Is this the
end? Briskly move profit-locking stop tight under the low of the candle (which is also
Giveback level).

N = Large candle through the R1. Move the profit-locking stop under the R1.

Woops! The next candle, red Bull Dragonfly spikes back through the R1 and takes us out
at our stop. (NOTE: It also forms the V of the Checkmark shaped EOD hiccup, pink lines)
+/- 34.5 points

Gotta love large-ABS days!!!

PERSPECTIVE
(Daily, bottom chart)

Pair of long-tailed Bull Dragonfly day candles as the
Price Action plunge slides to a stop (thanks to the
Fed's overly extreme reaction!). Thursday's larger
and healthier white Dragonfly implies a reversal/test
of the Historical S/R (green line) is coming.

REMEMBER: Trade the Tape, Not my Prognostics!

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

Wednesday's PMT Chart: