BS"D

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

Good morning,

Maybe ". . . the Bears still have their eyes set on the lower objective
[LT SW Channel floor] . . . ", but Wednesday was definitely bullish.

More importantly, the swinging slowed, and we finally had a decent trade
(read: profitable)!

Gotta run (more doctors today; BORING!). Have fun Thursday.

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 Apr 01, 2009

1 = Opening gap-down, the tape instantly presents us with a healthy 2-bar "P" Anomaly Signal at the S1 (Overnight,
bottom left chart). Volume is good (pink arrow), confirming.

2 = We get pulled in as the move takes off above the S1 on a 123 continuation (which is an "S" Signal as well).
Per our rules, initial stop advances under the S1. Per my gut (and a week of starts and stops and traps), I prefer
to advance the stop to "free trade" and a tik. Your choice.

A = DVS (pink arrow) generates a breakaway gap and a large white candle through the Low. Per PMT stop rules, move
the profit-locking stop under the Low.

B = Volume dims a bit and tapes a large (just barely), white, Spinning Top. Our stop rules tell us to move the
profit-locking stop under the low of the candle.

C = Volume resumes and Price Action gaps, taping a large white candle peeking through the Close. It is well into
the move, so this is an invitation to apply my convention of moving the profit-locking stop just a tad tighter than
usual, into the gap.

D = Large white candle/second healthy white candle closes above the Close puts our position in violation of Pivot
Magic Trading Maximum Profit Giveback (MPG) rules. Place mental stop at Giveback level.

BTW, this is a 2-candle 123, "S" Signal, so it's a great opportunity to add contracts. Not a good place to enter
though - the Price Window to the "always considered proven" Pivot is too tight.

E = Large white candle spikes through the Pivot and retracts. Our PMT choices are limited here: Either Pivot Scalp
exit now, or as soon as the next candle spikes through and retracts. +/- 11.25 points Finally a decent trade!

3 = 10:30 Reversal/Action Time and the tape displays a lovely 123 through the Pivot. Volume is strong, so we enter
aggressively above the Pivot. Initial stop advances under the Pivot, but I prefer to jump it to "free trade" and a
tik (see = 2, above).

F = Large, white, inverted (Bear) Dragonfly/second healthy (?) white candle closes above the Mid. Per our rules,
move the profit-locking stop under the Mid. The elongated top wick is worrisome, and the next Volume bar reveals
that it is in fact a Twin Towers pattern (pink arrow). A stall is coming.

When, two candles later, the Bulls fail to regain sente (forward Momentum), either exit immediately, or call it
second close above the LowM and move the stop very tight.

Fourth candle shoots up and the recoups 2 points. That is an Exit Now! No more fiddling with this position!!!
+/- 2.25 points

[SNIP]

H = Higher-High-Turns-Red/recoups 2 points of profits. That's two of our Exit Now! Signals in one candle.
+/- 1.75 points

"How did he get so much profit from this SCRATCH!?", you ask.

The key was watching multiple time frames. Take a gander at the 1-Minute tape (bottom center chart).
Looking inside this large red Bear Dragonfly developing on the trading tape, we spot a definite reversal
and breakout, well before we spotted the Exit Now! on the 5-Min trading tape. This gained us almost a
full point.

[SNIP]

8 = Plunger is pulled way back on this sling-shot of the MA. Signal completes a bit late for PMTers, and anyway,
it is out of range of the R1. Only pointing it out so you could take note of how the Price Action gets fairly
flung north, propelled by the power of the sling-shot action.

[SNIP]

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: