BS"D

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

Good morning,

[SNIP]

E-mini
Thursday Apr 23, 2009

1 = Thursday opens with a large red Bear Dragonfly 123-like kickoff from the Pivot
(blue arrow). There was a preceding trend (Overnight, bottom left chart), but we
don't trade Anomaly "S" Signals.

This second 123 (orange arrow) Signal, on the other hand, is too good to let pass.
Aggressive entry with initial stop jumping down above the Mid, for an instantly
profitable position.

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

B = Giant DVS (pink arrow) exhausts Momentum blasting a giant red candle through the
Close. Long bottom wick of the candle is another sign of exhausted Momentum. Briskly
move the profit-locking stop above the Close, per our rules; only to get taken out on
the next candle. +/- 5.50 points

[SNIP]

5 = Another higher low reverses off the plum trend line. This time it is possible to
call it a Bull Doji Sandwich "P" of the MA, a slingshot with the plunger pulled back.
All in all, that makes it a PMT-acceptable "S" continuation off the MA. Too bad the
Price Window is slammed shut at the nearby Pivot Resistance!

[SNIP]

7 = A slingshot with plunger pulled back reversal behind the Pivot (blue arrow) makes
the 3:00 Action Time, 2-candle 123, on pounding Volume (pink arrow), an irresistible
aggressive entry trade. Initial stop advances above the Pivot.

D = Large Doji (red Bull Dragonfly) spikes momentarily through the Mid. Per PMT stop
rules, move the profit-locking stop above the high of the candle.

E = Large red candle through the Mid. Per our stop rules, move the profit-locking
stop above the Mid.

NOTE: The telltale skid mark, long bottom wick, on this
candle indicates that the brakes have been applied.
Thinking Pivot Scalp exit at the Close. For extra exit
flexibility, mental stops seem warranted as well.

F = Gap, and large, red, inverted (Bull) Dragonfly. More pronounced skid marks.
This move is coming to an end. Time to apply my convention of putting the stop in
the gap. (Still prefer a mental stop. No reason to "commit" to giving it all back!)

And there it is. Lower low turns white (recouping almost 2 points as well) is a PMT
Exit Now! Signal. +/- 3.75 points

EOD Hiccup Time, and thus ends our day.

PERSPECTIVE
(Daily, bottom right chart)

When we last discussed the market, Price Action had just
encountered the LT Trend Channel ceiling (top green trend
channel line) - Historical S/R (lavender line) junction.
We anticipated a Bear reversal and an attempt at the LT
Trend Channel Floor (bottom green trend channel line).
Well, that's exactly what the tape showed us. Thursday
was another gentle test of the Trend Floor.

The Ceiling is theoretically now the target. Wonder if
Friday will witness a massive assault on the lavender
line? Never know about Fridays!

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: