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 indeed the rangy day that we hoped for. Sadly, however,
we were left out of most of both the run down from the Pivot/Close
and the rebound back above those PLs. Did get a couple of bites, and
equally important, we our Money Management rules kept us clear of a
few "sucker" moves.

TGIF!!!

Enjoy and be well,

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Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
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E-mini
Thursday August 27, 2009

1 = Morning session opens at the Close/Pivot with an Anomaly (Overnight, bottom left chart) Continuation Signal.
Painful as it is, we don't chance Anomaly "S" Signals; thus we miss the first part of the wild dive south.

2 = Finally, a 2-candle 123 through the S1 pulls us in. Initial stop advances above the S1.

A = Large red candle. No rule for it, but I'd be enticed to advance the stop to "free trade".

B = DVS (no room for an arrow) pumps a small gap and a large red candle. The elongated bottom wick tells us
the DVS exhausted Momentum, with the skid marks telling us that the brakes are on.

Use my convention, and place the profit-locking stop in the gap.

Plan a Pivot Scalp Exit if S2 shows any signs of resistance.

C = Twin Towers (pink arrow) stall/sag/reverse indicator clinches our decision to Pivot Scalp exit as large
red candle taps on S2 and retracts. +/- 5 points

3 = DVS-based (pink arrow) 2-bar "P" Reversal Signal off the S2. Not having much faith in the longevity of
DVS-based signals, we let it pass.

4 = White Bull Dragonfly stretches to within range of S2. Volume has started to fade. That's a long way to
climb to the Pivot relying on the rubber band alone. Pass.

X = Goosed by numerous Bull DVSs (blue arrows), Price Action wafts up through the S1. Looks like Bull TELLs.
The BBs want to move north when they come back from lunch.

5 = Really would like to enter on this Continuation, but mid-lunchtime the risk is still too high.

X = BBs start to return from lunch, adding another series of TELLs (brite blue arrows) driving Price Action
through the Pivot/Close. Looks like the BBs do really want to continue on north.

6 = First 123 doesn't clear the "green fog" (green arrow), but the second does.

D = Volume comes to life (pink arrow) driving a large white candle, which pulls us in. Advance the initial
stop under the MA.

E = Not-quite-large white candle puts our position in violation of Pivot Magic Trading Maximum Profit
Giveback (MPG) rules. Volume is still elevated, so stretch it a bit and call it "large". Per our rules, move
the profit-locking stop under the low of the candle.

F = Even relative to the large Volume bars adjacent, this is a DVS (pink arrow) generating a large white
candle to tap on the R1 and retract. Not quite enough to trigger a Pivot Scalp exit, but enough to suggest
that the profit-locking stop that we move under the low of the candle be a mental stop (permitting brisk exit
if necessary).

Next candle taps on the R1 and tapes a Reversal. At 62% retracement of the body of = F, Exit Now!
+/- 3.50 points

7 = Healthy 2-bar Reversal off the R1. The signal is DVS-based, so, not trusting it for longevity, we let
it pass. The day peters out half way between the Close and R1.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Pivot Point Daytrading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Thursday's PMT Chart: