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

Good morning,

In yesterday's PERSPECTIVE we said:
". . . Again the Bulls stopped shy of crossing the Historical S/R (green dashed line).
Guessing that Monday will spike through, at least temporarily."

Well, that's exactly what we got, a nice Parabola day with almost no net change in Price.

It was fun (read: profitable) to trade though!!!

Be well,

=] ;-)>
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E-mini
Monday May 19, 2008

[SNIP]

4 = DT Double top/2-bar "P" off the R3, exactly 3:30 Reversal time.

J = Pulled in on a failed test of MA. Per our stop rules, advance the stop above the MA, for very controlled Undefended At Risk.

K = Failed test of MA. Per our rules, move the profit-locking stop tighter, above the MA.

L = DVS (pink arrow) generates a large red candle to the R2. Our position is in violation of the Pivot Magic Trading Maximum Profit Giveback rules.
Place a mental stop at Giveback level.

5 = Second Chance entry on a 2-candle 123 of the R2. If you are in from = 4, add contracts.

M = Large red candle through the R2. PMT stop rules say to move stop above the high of the candle/R2.

N = Large red candle. Per our rules, move profit-locking stop above the High of the candle.

P = Huge DVS (pink arrow) generates a huge red inverted (Bull) Dragonfly through the R1. Briskly move the profit-locking stop above the R1.

NOTE: Since this candle was totally out of place, you may well have applied the first rule of PMT trading,
"Any time you don't know what is happening, get out!" That would possibly have gotten you out around
the High.

OTHERWISE:

Q = Large red candle through the HighW. Position is in maximum Profit Giveback violation. Mental stop at Giveback level.

R = Following the wild swing of = P, and noting that = Q is a Higher Low, the Black Volume Bar of Death (albeit diminutive) is a mighty clear sign that
Momentum is gone. An R1 retest is very likely. When the next candle shows white, Exit Now! +/- 9.25 points

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)

Monday's day candle exhibits a vigorous spike north, but ends up a weak, inverted (Bear), just barely white, Dragonfly.
The tape traces a parabola closing just above the Historical S/R (green dashed Line).

Tough to read this spike candle. Could be the final desperate spike before the Bears take over (my guess), or . . .

REMEMBER: Trade the Tape, Not my Prognostics!

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

Monday's PMT Chart: