BS"D

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

Good morning,

Had to work for it, but Wednesday we finally got to take a few decent bites
out of the market!

Third hit on the hard Historical S/R meets our definition of a LT SW Channel
ceiling (Daily, bottom right chart, lavender lines). Rather expecting an
attempt at the Channel floor over the next couple of days.

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

[SNIP]

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E-mini
Wednesday Mar 25, 2009

[SNIP]

2 = 2-bar reversal off the R1. Pivot retest is likely, even during lunchtime, but the Volume is initially
too weak for an aggressive (or any) entry. The Signal completes with a Marubozu (full-bodied candle without
wicks), so we also are wary that the troops just might not rally into the hole punched by the sumo candle.

A = Volume perks up a bit, and we get pulled in on a Failed test of MA/large red Bear Dragonfly. Initial
stop advances above the MA.

B = Volume continues to increase and generates a large red candle through the Mid. Per PMT stop rules, move
the profit-locking stop above the Mid.

C = DVS (pink arrow) blasts a very large red candle through the Pivot. Per our rules, move the profit-locking
stop above the Pivot.

D = Small Doji (just to scare us), and the tape follows up with a large red candle through the HighW. Rules
say to move the profit-locking stop above the HighW.

E = DVS (pink arrow); late in the move it suggests exhausted Momentum. Small gap and a large, red, Spinning Top
further suggest exhaustion. Price Action spikes through the Close and retracts.

* Ideally, this was a Pivot Scalp exit as soon as the
Price Action retracted, +/- 7.50 points

* Alternately, per my convention, place the profit-locking
stop in the gap, and get stopped out 2 candles later,
+/- 6.75 points

3 = Failed test of MA is also a 123 continuation, an "S" Signal, of the close.

F = Huge DVS (pink arrow), and a huge red candle through the Close/Low pulls us in as Price Action exits the
"green fog" Ambush Zone. Initial stop advances above the Low for a virtually no At Risk entry!

By the close of the candle it our position is in Pivot Magic Trading Maximum Profit Giveback (MPG) violation, so
convert that to a mental stop at Giveback level.

G = Twin Towers (pink arrow) and a large red candle rips through the S1. The Twin Towers indicator advises that
a stall/sag is coming. Since we don't know if it will be a retest below or above the S1 we must chose:

* Assume it will cross above the S1 and exit immediately.

* Assume it will not cross above the S1 and place our
profit-locking stop above the S1.

With little to lose, and a massive Bear assault under way, let profits ride and place the profit-locking stop
above the S1. Wrong choice. Stopped out. +/- 4.25 points

4 = The MA Resistance holds, and the tape displays a 123(45) of the S1.

H = Pulled in on a (barely) large red candle through S1. Advance the initial stop above the S1.

J = Large red candle puts our position in MPG jeopardy. Mental stop at Giveback level/"free trade".

K = Large red Spinning Top. Does this imply exhaustion? Thinking Pivot Scalp exit. PMT stop rules say to
move the profit-locking stop above the high of the candle.

L = Giant Black Volume Bar of Death, and a large Doji spikes through the S2 and retracts. Pivot Scalp exit,
either as the Price Action (Doji) retracts above the S2 , or when the next candle does likewise.
+/- 8.75 points

[SNIP]

6 = Exactly 3:00 Reversal time, and there's the signal, a 2-bar through the S2. The large Doji Spike Sandwich
on the 10-Minute (bottom left chart) is even more convincing!

M = Large white candle pulls us in, with initial stop under the S2.

N = Failed test of MA. Per PMT stop rules, move the profit-locking stop under the MA.

P = Large white candle. Move the profit-locking stop under the low of the candle.

Q = Large white candle through the S1 permits us to tighten the stop, under the S1.

R = It is EOD Hiccup Danger Time, and the tape displays two end of move reversal warning indicators:

* Large white candle with elongated top wick

* Doji stall candle

Experienced traders go flat immediately, +/- 6.50 points. Less experienced traders give back a bit and get taken
out at the stop, as the first leg of the classic "V" check mark EOD Hiccup (plum lines) tapes.

The Hiccup powerfully blast through the Close, and runs Price Action to close EOD at the Pivot.

PERSPECTIVE
(Daily, bottom right chart)
In yesterday's PMTJ we anticipated, ". . . The tape shows a red candle that
is right on the edge of 'breather' and 'reversal'."

Take a gander at the tape. That Giant white Spinning Top day candle surely
meets both projections.

A rather wide Long-term Sideways Channel has now formed as well (lavender
channel lines).

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: