BS"D

Exploit Pivot Points
Learn to Read the Tape
Daytrading Course

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DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

Not exactly the type of "Follow Through Monday" we expected,
Monday taped an interesting parabolic day, running from Pivot
to Pivot, down and back. We even scored a few points of profit.

Enjoy and be well,

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E-mini ES M0
Monday April 19, 2010

1 = Monday opens just under the Close and stretches to tap on the Pivot. Of course, there is no entry
(Close is proven and we don't enter directly into the fog).

2 = Failing the retest of the MA, the tape describes a 123 Continuation off the underside of the Close.

A = After being pulled in on a scary Doji, failed test of MA (large red candle) enables us to move the
profit-locking stop above the MA, slightly reducing At Risk.

B = What do you see?

* White candle retraces >62% of the red candle, but that represents
less than a point of retracement.

* Expecting S-trap. Proven MA above is likely ceiling to S-trap.

* White candle retraces 1 point (that's NOT 2 points) of profits, to
expire with a tap on the MA.

If you exited on strictly on visual instinct, you did well to SCRATCH with a nominal profit.

Advanced PMT Readers of the Tape, however, may well have moved the profit-locking stop tight above
the MA, and relied on their detailed analysis of the reading, above.

C = Failed test of MA. So much time has lapsed hovering that this is either the Bear continuation or the
beginning of lunchtime drift. Move the profit-locking stop to "free trade".

D = Volume actually increases, driving a small gap and a large red candle. Our position is in violation of
PMT Maximum Profit Giveback (MPG) rules. Mental stop at Giveback level.

E = Large, red, inverted (Bull) Dragonfly skids through the Low and retracts. Per our stop rules, move the
profit-locking stop above the high of the candle. This may be a Twin Towers Volume pattern, indicating a
stall/sag next.

Price Action did indeed stall for a single small white Spinning top. Large red candle stretches to spike at
the MA, then rips through the Low. Per our stop rules, move the profit-locking stop above the Low.

G = DVS (pink oval, late in the move, this is an exhaustion of Momentum indicator) drives a tap and retract
of the S1. Pivot Scalp Exit. +/- 6.75 points

The Reversal Signal (blue arrow) is without Volume support as lunchtime, and sideways drift resume. Pass.

4 = Reminiscent of a large-scale Double Bottom off the S1, this slingshot of the MA (plunger pulled back) is
just out of range of both S1 and MA.

Arrrgggghhh! We missed the return trip move, and it hurt a lot.

LET'S PRETEND - NOT A REAL TRADE

H = Volume surges, and large white candle pumps through the MA. Assuming = 4 to be within range
of the S1, or if you prefer, that we enter off the LT Trend Channel Mid-line (Daily, bottom chart,
dotted green line), our imaginary trader is pulled in. Initial stop advances under the MA for
reduced At Risk.

J = Large, white Bear Dragonfly. That elongated top wick is worrisome. Move the profit-locking
stop to "free trade".

K = Large white candle. Per our stop rules, move the profit-locking stop under the low of the
candle.

L = DVS (pink arrow) drives a large white candle with an elongated top wick. Momentum is waning.
Anticipate an S-trap stall. Alternatively, prepare for a Pivot Scalp Exit. Meanwhile, per our
stop rules, move the profit-locking stop under the low of the candle. Make that a mental stop.

N = Bull run continues with a large white candle. Stop rules advise to move the profit-locking
stop under the low of the candle. Again, use a mental stop, and anticipate a Pivot Scalp Exit.

P = Primary Objective (the Close) achieved with a spike-through and retrace. Pivot Scalp Exit.
+/- 5.25 (pretend) points

5 = Very nice 123 Continuation of the Close. This is the last PMT entry time of the day. With no Price Window
to the Pivot we have no entry and shut down the monitor for the day.

EOD Price Action drives through the Pivot to close above that PL.

PERSPECTIVE
(Daily, bottom chart)

Monday taped a white day candle, but the tape reveals that it actually describes
a mostly bearish day. Price Action dipped to tap on the LT Trend Channel (green
channel lines) Mid-line (green dotted line) as we expected.

Looks set for a breather candle Tuesday, probably again testing that line.

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: