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

In yesterday's PERSPECTIVE section of the Daily Pivot Magic Trading Journal
we projected: " . . . EOD Hiccup almost closes the gap. That leaves the BBs
an obvious 'must do' [basic TA teaches us that gaps will get closed!] for the
open tomorrow . . . "

We sure got that one right!

Mostly, Volume looked like a herd of stampeding zebras all morning Wednesday,
but we did get one decent (or excellent, depending on how you played it)
trade once the BBs returned from lunch.

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 March 5, 2008

. . . [SNIP] . . .

The morning, through lunchtime, Price Action battles madly with the Resistance-turned-Support at the R1.

B = With Volume rather low, and very confused (middle chart), our PMT tape reading skills and rules kept us
from several false starts.

2 = When the BBs return from drinking lunch, Volume resumes (middle chart). Price Action finally crosses below the R1.
A resounding "P" 2-bar/DT Double top through the R1. That's our signal.

C = Small breakaway gap, and we are pulled in on a monster red candle through the High. Lovely, because this also
permits us to advance the initial stop above the High for instant secured profits. My favorite kind of entry scenario!

D = Another gap, and the tape shows us a large red candle, which enters into the "green fog". Per our rules, move
profit-locking stop directly above the high of the candle or to Giveback level.

NOTE: This single candle violates our Maximum Profit Giveback rules; however,
ABS is very healthy today so we expand the Giveback to 3 points. Thus, when
the next candle turned white and left the fog, you may have exited to avoid
Maximum Giveback. +/-7.50 points. OR, since the Price Action only spiked
and immediately dipped back into the fog, you may equally well have trusted
your mental stop and elected to hang on.

F = Large red candle through the Close. Hate hovering in the fog. Per PMT stop rules, move profit-locking stop above
the Close. If the tape displays a white candle now and we jump.

F = Huge DVS generates a massive red candle stabbing through the Pivot, coming to rest atop that PL. Experienced
tape-reading PMTers understand that this push has exhausted the Momentum.

As soon as the next (Lower-Low-Turns-White) candle crosses back above the Pivot and turns white we have a classic
Exit Now! +/- 12.50 points

. . . [SNIP] . . .

PERSPECTIVE
(Daily, bottom chart)

Price Action, still balanced atop the floor of the LT Sideways Channel (lavender channel lines),
has yet to assault the Historical S/R (green line). Unless the Bulls at least vigorously test the
green line Thursday, per our reading of the Daily tape, Wednesday's tiny white day candle might
well only be a breather in a TTT attempt at the Channel floor.

Exciting!

REMEMBER: Trade the Tape, Not my Prognostics!

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

Wednesday's PMT Chart: