BS"D

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

Good morning and a good week,

As we anticipated in Friday's Pivot Magic Journal, Price Action headed for the
LT Trend Channel ceiling, first testing the Historical S/R (lavender line).
On Friday we took a decent bite from the Bull move, but now the Bulls seem
ready to rest a bit at the lavender line.

[SNIP]

E-mini
Friday Apr 24, 2009

[SNIP]

TGIF Lunchtime starts a bit late, and while displaying a few Bull TELLs (= X, blue arrows), Price Action drifts
sideways above the R2 until mid-afternoon.

C = Suddenly, Price Action comes to life, swings wildly, and dives though the R1 Support. This sets up a massive
Bear trap, a slingshot of the MA with the plunger pulled way back, = 3. The Bull Volume is slightly diminished
(pink arrow), but the 2-bar Reversal is still suspiciously akin to DVS-driven. Readers of the tape tend to doubt
DVS-driven signals for longevity. We hesitate.

D = A breakaway gap and the series of TELLs each indicate that the achievement of the Primary Objective, R2 is
almost a certainty, and so, we are pulled in. Initial stop advances under the low of the candle for reduced
At Risk.

E = Large white Bull Dragonfly. Per our stop rules, move the profit-locking stop under the low of the candle.
(Personally, as Price Action crosses above the MA, I feel better advancing it to "free trade and a tik. Good
ole risk-conservative me!)

F = Failed test of MA stretches to tap on the R2. Though we might also elect to Pivot Scalp exit, the Volume
actually picks up, so advanced, experienced traders instead move the profit-locking stop under the MA (mental
stop for increased exit flexibility) and hold.

G = Large white candle blasts through the R2. PMT stop rules say to move the profit-locking stop under the R2.

This crossover is also a 2-candle 123 continuation, which provides an opportunity to add contracts.

NOTE: If you have not yet joined the move, Volume is strong, but not
strong enough at this Extreme PL to enter aggressively.

H = Large white candle puts the position in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules.
Place mental stop at Giveback level.

NOTE: Once the candle (another 2-candle 123 continuation signal) clears
the open of the previous white candle, enter from = G, or add contracts
if you are holding the position from = 3.

The next candle is a Higher-High-Turns-Red. As soon as the candle shows red we recognize it as one of our PMT
Exit Now! Signals. +/- 8.75 points

[SNIP]

PERSPECTIVE
(Daily, bottom chart)

Friday unsuccessfully tested the Historical S/R (lavender line). Price Action
stopped at this hard Resistance EOD, and is likely to rest there (or even settle
down for a floor hit) before attempting a LT Trend Channel Ceiling assault.

REMEMBER: Trade the tape, not my prognosis!

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

Friday's PMT Chart: