BS"D

Exploit Pivot Points
Learn to Read the Tape
Daytrading Course

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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Monday was a Surge Slide again, as Price Action continues to drift higher,
with notably diminished trading Volume. Entering off the S1 Pivot Point,
Advanced, experienced PMT traders grabbed one, easy to miss, but nicely
profitable trade.

Enjoy and be well,

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E-mini ES H0
Monday March 22, 2010

Morning session opens with a Bull Dragonfly, gap-down below the S1.

1 = This qualifies as a 2-candle 123 Continuation "S" Signal, pulling Advanced traders in aggressively.

A = Not too wild about the elongated top wick, but this large white candle permits us to move the
profit-locking stop under the low of the candle.

B = Small gap and large white candle/failed test of MA. Per PMT stop rules, move the profit-locking
stop under the MA.

Price Action crosses above mid-LT Trend (Daily, bottom chart, dotted green line) and stalls. Based on
PMT stop principles, on the second white candle closing above the dotted green line we might think
creatively (the dotted line is not really a PL) and move the profit-locking stop under the dotted
green line.

C = Large white candle spikes the Close and stops cold. Opening gap is closed. First Objective
achieved. SURGE

Our position is in violation of PMT Maximum Profit Giveback (MPG) rules. Mental stop at Giveback
Level.

D = Large white candle through the Pivot. Per our stop rules, move the profit-locking stop under the
Pivot.

This is a 2-candle 123. Take the opportunity to add contracts?

No! Twin Towers Volume pattern (pink arrow) warns that a stall/retest is next. Not an encouraging
background for a successful entry Signal.

2 = A 123 Continuation off the Pivot. Volume is a too weak to enter. Similarly we might hesitate to
add more contracts.

E = The tape reads, "Bad News!"

* Small, white, inverted (Bear) Dragonfly, mostly tail. Clear Price Action
Momentum stall, Momentum reversal pending/probable.

* Weak DVS (pink arrow), late in the move. Generally, this signals
exhaustion of Momentum.

* Pivot retest potential is high.

Immediately Cancel stop under Pivot. Replace with a mental stop, extra tight (-0.25 p) under the
= E open.

Next candle, a small red Marubozu, squat sumo, hits our stop. Slipped a bit. +/- 8.25 points

Price Action now turns sideways. SLIDE

[SNIP]

The day continues to drift gently upward to EOD.
Not even enough interest today to generate an EOD Hiccup.

PERSPECTIVE
(Daily, bottom chart)

Large white day candle increases the quandary decorating/defacing the tape.
This candle, viewed in context, relative to the preceding candle, in fact
spent most of its life in Bear country.

A rather narrow LT SW Channel (blue channel lines) has developed, cramping
the trading range.

Extremely low trading Volume has wafted Price Action to new highs. The
trend seems to represent more the lack of meaningful resistance than even
slight support. The market is perched extremely precariously. Little
optimism to be derived from the Funnymentals, and one ugly item could
easily cause Price Action to plummet.

I will not desist from my "sky is falling" ruminations. They are not
projections (see REMEMBER:, below), but rather a (my) report of collateral
conditions developing and displayed on the tape. LOL!

Since tomorrow is likely to be a Plunge Slide, prepare for the saga of the
above quandary to be continued on Tuesday.

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

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

Monday's PMT Chart: