BS"D

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

Good morning,

Thursday was devoted to Scatching Practice. Not one decent trade all day.
We did however gain much confidence in our Pivot Magic Trading Money
Management rules, which didn't let us down once.

The seven white day candles in a row Bull trend streak has been broken.
The tape is set and primed for Bear action on Friday. So much for the
Fed's $300 billion gesture!!!

TGIF!!!

[snip]

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E-mini
Thursday Mar 19, 2009

Morning session opens gap-up, with Price Action rapidly descending to close the gap.

1 = Nice Volume confirmation (pink arrow) for this large 2-bar Signal off the Pivot.
Aggressive entry would be acceptable.

A = Large white candle. Per our PMT stop rules, move the profit-locking stop under the low of the candle.
With all the swinging Price Action of late, I prefer to zip it up to "free trade".
(Good ole risk-conservative me!)

B = Large white candle impacts Resistance at the Close. Not at all happy about stalling in the "green fog"
Ambush Zone. Per our rules, move the profit-locking stop under the low of the candle.

Price Action is again rebuffed by the Close, and we are taken out at the stop. +/- 0.75 points

Although this is a "P" Signal reversal off the close, the Volume is extremely diminutive. Thus, we don't
even consider reversing here. The move never takes off anyhow.

2 = 2-bar Reversal off the Close makes this a self-confirming pair. Plenty of Price Window to the Pivot.

C = Not much Volume, but the rubber-band to the Pivot is on our side. This large red candle pulls us in as
Price Action exits the fog.

Next candle is a Lower-Low-Turns-White, which is one of our PMT Exit Now! Signals. As soon as the candle
shows white, SCRATCH! +/- 1 point

3 = Red Bear Dragonfly kickoff candle for a 123 continuation. Just enough Price Window to the Pivot for a
Pivot Scalp entry.

D = Pulled in on large red Bear Dragonfly. Per our stop rules, move the profit-locking stop above the high
of the candle.

E = Large red candle. Once again, move the profit-locking stop above the high of the candle.

Mid-air reversal signal completes on the next candle. That's another Exit Now! Signal. SCRATCH!
+/- 1.25 points

Sure getting lots of practice SCRATCHing today!

4 = Interestingly increasing Volume piques our interest, as the tape displays a 123 "S" continuation off
the Pivot.

F = Small gap, and a large red candle just barely through the Mid pulls us in. Lunchtime is due any moment,
so I prefer the aggressive option of using use my convention to move the profit-locking stop into the gap.

G = DVS (pink arrow) generates a large, red, inverted (Bear) Dragonfly. We of course exited by the time
Price Action recouped > 2 points of profit. Getting mighty tedious! +/- 1.75 points

Volume dribbles off, and lunchtime sideways drift ensues. BBs continue drinking lunch well into the afternoon.

5 = 2:30 and Volume finally comes to life a bit (pink arrow). The tape presents a strung out 123 Continuation
signal (maybe even pulling us in aggressively?)

J = Very large, red, inverted Dragonfly spikes through the Mid and retracts. Move the profit-locking stop
above the high of the candle.

H = Large red Bear Dragonfly though the Mid. Happily (not part of the rule), per our rules, move the
profit-locking stop above the Mid.

K = Close! Our stop just missed getting hit, as the tape displays a large red candle. Uncomfortably, there
seems no way to tighten the stop.

DRAT! Next candle makes this a mid-air reversal, which is, of course, a classic PMT Exit Now! Signal.
SCRATCH! yet again. This time we are prepared and go flat immediately as soon as 62% of the red candle is
retraced. +/- 2 points

Big trade of the day. Hah!

PERSPECTIVE
(Daily, bottom chart)

Thursday's day candle is clearly Bearish, breaking the streak of white candles.
It is also completes a reversal signal, making it very very likely that the
plum line (Historical S/R, around 772.5-773) will be overrun during Friday trading.

BEWARE OF TRAPS ON FRIDAY!

REMEMBER: Trade the tape, not my prognosis!

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

Thursday's PMT Chart: