BS"D

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

Good morning,

Just as we predicted yesterday, Tuesday's candle closed white (bullish).

From an almost 30 Point, large range, E-mini day we only managed to squeeze
out a few mediocre trades, and about half that many points in profits.
A bit exasperating, but at least no ulcers!

Wednesday is likely to be a breather overall, but with wild swings
throughout the day. Keep your powder dry!

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
Tuesday Feb 24, 2009

Morning opens slightly up from the Close, bounces, and returns to retest, closing the gap.

1 = A Double bottom "P" Signal completes with a Doji Sandwich.

A = Volume comes to life (pink arrow), generating a large white candle, pulling us in.

NOTE: In light of the Price Action seesawing recently,
consider moving the stop to "free trade" as the candle
closes.

B = Giant white candle through the LowW. Per our stop rules, move the profit-locking stop under the LowW. As the
next candle (Higher-High-Turns-Red) taps the Pivot and retracts, Pivot Scalp exit. +/- 6.25 points

[SNIP]

3 = Volume jumps to life, and a giant white candle completes a 123 continuation "S" Signal through the Pivot,
pulling us in aggressively. Again, by candle's end jump the stop to "free trade" (see NOTE:, above), and hang on!

C = Small breakaway gap, and large white candle crosses the Mid. Per PMT stop rules, move the profit-locking stop
under the Mid.

D = Large white candle. Move the profit-locking stop under the low of the candle. Notice there are now 3 candles
in a row with somewhat elongated top wicks. Doesn't look like enough Momentum left to make it to the R1.

E = Doji Sandwich mid-air Reversal signal. That's a PMT Exit Now! Signal. If you were quick on the trigger:
+/- 6.25 points

Eat your heart out! The Bulls recovered (twice, if you were slow at the blue arrow too). Theoretically, advancing
stops at = F and exiting as R1 Resistance holds, you might have scored as much as +/- 11.75 points. Sigh!!!

4 = Volume (pink arrow) is strong and constant as Price Action tapes a large 123 "S" Signal, spot on the last
tradable Action Time Line.

G = Pulled in on large white candle. (See NOTE:, above)

H = Large white candle. Per our stop rules, move the profit-locking stop under the low of the candle.

The next candle puts our position in violation of the Pivot Magic Trading Maximum Profit Giveback (MPG) rules.
Call it a large candle, and skip the profit-locking stop up under the low.

Next candle completes a mid-air Reversal Signal, which is one of our Exit Now! Signals. Surely by the time the
next candle spikes and shows red, Exit Now! +/- 3 points

Price Action closes EOD at the R1.

PERSPECTIVE
(Daily, bottom chart)

Tuesday's large white candle completes a powerful 2-bar Bull Reversal
off the plum line (day session contract low). Don't really expect much
from a northward incursion on Wednesday. Probably a zigzagging
breather day, but . . .

REMEMBER: Trade the tape, not my prognosis!

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

Tuesday's PMT Chart: