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

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E-mini
Wednesday May 14, 2008

1 = Morning session opens gap-up with an Anomaly Signal off the R1. Volume is massive (pink arrow). Use Aggressive Entry technique at around 1412.
No rule here, but I'd feel safer (good ole risk-conservative me) advancing the initial stop under 1411.

A = Large white candle. Per our Pivot Magic Trading stop rules, this gives us an opportunity to move the stop to secure a bit of profit, under the low of
the candle.

B = With S/R holding both at the MA below, and at the R2 above, stretch it a bit and call this a large white candle. Move profit-locking stop under the
low of the candle per our rules.

C = DVS (pink arrow) drives a large white candle through the Resistance at R2. Per our stop rules, move the profit-locking stop under the R2.

D = Two white candles with long top wicks imply failing Momentum. The Black Volume Bar of Death confirms it. As soon as the next candle shows red
we have a PMT Exit Now! situation. +/- 4.75 points

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4 = Red Bear Dragonfly "P" through the R2.

E = Personally, the pair of Dojis before the move's shaky takeoff scared me off. In the end, if your ulcers could handle it, the move did finally take off.

5 = Powerful 123 off the R3 for a nice "S" second chance entry.

F = Failed test of MA provides us an opportunity to move the profit-locking stop almost to "free trade".

G = Black Volume Bar of Death (blue arrow). We prepare to exit, but the Bears recovered powerfully with a large red candle (pink arrow). Per our stop
rules, move the profit-locking stop above the high of the candle.

Support at R2 held briefly. Beginning PMTers Pivot Scalp exited at the second hit on the R2. +/- 2.50 points

Experienced tape readers, however, noted the lack of Bull interest exhibited in the next two candles and held tight, scoring considerably more points.

ADVANCED, EXPERIENCED PMT TRADERS

G = DVS (pink arrow) drives a giant red candle through the R2. PMT stop rules advise to move the profit-locking stop above R2.

J = Including the wicks, this is a large red candle. Move the profit-locking stop above the high of the candle.

K = A gap and a DVS-driven large red candle. As I have mentioned before, in such circumstances my personal style is to move the profit-locking stop
into the gap.

L = Second DVS ( pink arrow) generates another giant red candle, this time through the R1. It is EOD Hiccup Danger time and this smells of Twin Towers.
Is a stall/sag/retest coming now? Per our stop rules, move the profit-locking stop above the R1. Prepare to exit, i.e. have a Cancel-Replace order ready
to fire off instantly.

The next candle dips just low enough to identify it as a Lower-Low-Turns-White. That's one of our Classic Exit Now! signals. +/- 8.25 points

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PERSPECTIVE
(Daily, bottom right chart)

First off, notice that Tuesday's day candle is white on this tape instead of red as it was on Tuesday. Huh?!?

Anyhow, even with the nice Bull spike, Wednesday was a dud, a breather day. The Bulls couldn't sustain the
attack. It is now even more likely than before that the Bears will get their turn next. Looking for the Bears
to at least test the solid green Historical S/R, if not the green dotted line, on Thursday. (I lost the pixel war
today. Please excuse the sloppy placement of the lines).

REMEMBER: Trade the Tape, Not my Prognostics!

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

Wednesday's PMT Chart: