Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************

PIVOT MAGIC JOURNAL - EXCERPT

Good morning and a good week,

Once again we called it right (even happier that we scored a whack of
points than I am to have been right). Thursday's PERSPECTIVE read:

"Friday is anybody's guess, but it looks like a set-up to test the
lavender line (Historical S/R and floor of recently exited LT
Sideways Channel)"

Yup!

Be well,

=] ;-)>
******************************

BS"D

Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************

E-mini
Friday March 14, 2008

1 = Night session ends (Overnight, bottom left chart) with a massive reversal at the Historical S/R (lavender line) A.K.A.,
the LT SW Channel floor, which leads to a powerful 123 of the Close. This oddity presented a possible 9:45 AM entry, as a
giant red candle exits the "green fog", with initial stop above the Close.

Since this Anomaly was truly an anomaly [sic], you may well (read: risk-conservatively) have waited for a second chance.

2 = Second chance, "S" 2-candle 123 or the Pivot. If you entered on = 1, add contracts.

A = Giant red candle surely put your position in violation of Maximum Profit Giveback rules. Mental stop at Giveback level.

NOTE: Although it is quite early in the day, ABS so far is enormous. Thus, to avoid getting
taken out at every Price Action adjustment, consider expanding Giveback to at least 3 points,
and consider doubling stop distances.

B = Another giant candle. Ideally, you exited when the spike tail of this inverted (Bull) red Dragonfly pulled back 3 points
from the candle's low. +/- 19 points (from =2) OR +/- 28 points (from = 1)

Not bad for an oddity!

3 = In case you considered an aggressive entry Reversal of this spike 2-bar, let me remind you that we don't trust the
longevity of 2-bar's driven by DVSs (middle chart. As you can see, this was a good example of why not!

. . . [SNIP] . . .

PERSPECTIVE
(Daily, bottom right chart)

Friday's retest of the recently exited LT SW Channel floor (lavender line), which is
also, obviously, Historical S/R, failed. Though the close of the daily candle was up
a bit, the large white candle from Tuesday has now been completely retraced (at
least nominally).

Reading the tape makes us a bit afraid that gravity will likely continue to exert its
pull on Monday. Be prepared!

REMEMBER: Trade the Tape, Not my Prognostics!

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

Friday's PMT Chart: