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

Good morning,

Seems that even $900 billion worth of hot air, isn't enough to effect a lift
off of the "market recovery" balloon. Wednesday's Price Action taped a
(parabolic) Hover-Dive-Hover. Enough for the BBs (and PMT traders!) to scalp
out a nice profit, without committing themselves by exiting the safety of the
LT SW Channel.

Thursday, however, is sure set up for a test of the LT SW Channel Floor

The market has plunged over a very significant precipice and is teetering.
A Red Flag warning remains in effect.

CAVEAT
Guard your funds. Although a dangerous time for beginning traders to
get wet, this is an excellent time for paper trading and practice.
[snip]

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E-mini
Wednesday Feb 04, 2009

Day session opens gap-up, bounces off the MA, and heads for the R1.
[SNIP]

For the rest of the morning Price Action was contained below the MA, slowly drooping to test the R1 Support.
[SNIP]

4 = It is exactly 1:30 Reversal Time, as a test of the R1 Support-turned-Resistance fails, for a 123 continuation
PMT "S" Signal.

E = Pulled in below the MA on a giant red candle. By the close of the candle, our position is in instant violation
of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop to Giveback level/"free trade" and a tik.

F = DVS (pink arrow) generates another large red candle, and puts us in MPG violation once again. Mental stop at
Giveback level.

G = Huge DVS (sorry, no room for a label) pumps Price Action through the Close to the bottom edge of the "green fog"
Ambush Zone. Per our rules, move the profit-locking stop above the Close.

H = DVS (pink arrow) drives a large red candle through the Pivot. PMT stop rules suggest moving the profit-locking
stop above the Pivot.

And that is where we get stopped out. +/- 7.25 points

In spite of some pretty serious DVS spikes, Price Action remains trapped in the Pivot-Close channel to EOD.

PERSPECTIVE
(Daily, bottom chart)
Wednesday's day candle is a Doji. The BBs have again generated a
zero net Price change candle, enough movement to scalp, without
leaving security of the lower portion of the LT SW Channel
(lavender channel lines).

3 breather days in a row and the long top wick on Wednesday suggest
that a test of the Channel Floor is scheduled for Thursday.

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Wednesday's PMT Chart: