DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
Thursday was a nice ranged Doji, zero net change, day. We scored bites
out of the run down and the run back up.
Sure would have loved to have had some reliable risk-conservative rules
for a safe EOD Hiccup trade!
Enjoy and be well,
E-mini ES Z0
Thursday October 14, 2010
1 = Morning opens at the Close, dips, and returns for a questionable reversal off the Pivot. No
self-confirming signal, but it is possible to call the reversal off the Pivot also, so . . .
A = For those who entered on this large, red, DVS-driven (pink arrow) candle, when the candle closes
move the stop to "free trade" and a tik.
When the next (white) candle retraces >2 points, SCRATCH! with a point. Booo!
2 = Doji Sandwich (?) off the Pivot/Close. Enter as Price Action leaves the "green fog" on the next
B = Failed test of MA. Per PMT stop rules, move the profit-locking stop above the MA.
C = Large red candle. Our stop rules advise to move the profit-locking stop above the high of the
D = Large red candle. Normal stop placement leaves the position in violation of Pivot Magic Trading
Maximum Profit Giveback (MPG) rules. Mental stop at Giveback Level.
E = What looks like an exhaustion gap precedes a healthy red Bear Dragonfly. Per my convention, move
the profit-locking stop into the gap.
F = Large red candle through the Low. Our stop rules say to move the move the profit-locking stop
above the Low.
G = Large red candle spikes the S1 and retracts. Late-in-the-move DVS (pink arrow) completes a Twin
Towers Volume pattern. A stall/bounce is coming next. Change the profit-locking stop to a mental
stop for quick exit and prepare to exit on first sign of white.
+/- 4.75 points (with a drop of slippage).
Lunchtime sideways drift stitches back and forth across the S1.
3 = Time is wrong to trade away from the Pivot-Close on this sudden burst. The Volume however
presents readers of the tape with a second TELL (blue arrows). The BBs want a Bear move after lunch.
4 = There's our Bear Signal; however, Volume remains at lunchtime levels (pink arrow). We (sadly)
must let the run to test the Historical S/R (light blue line) and S2 pass.
5 = Doji Sandwich off the S2. Trading interest/Volume is up a bit. Get ready.
H = Breakaway gap and we are pulled in. Advance initial stop under the blue line for reduced At Risk.
J = Giant white candle puts the position in MPG violation. Mental stop at Giveback Level.
K = S-trap and a DVS (pink arrow) drives a giant white candle to spike the S1 and retract. Exit as
soon as Price Action retracts below S1. +/- 2.75 points
Right on time, the EOD Hiccup (plum lines) tapes a classic "V" check mark, and runs all the way back
to the Close. That hurt!
(Daily, bottom chart)
Overall, Thursday taped a Doji day candle for no net gain.
Friday could go anywhere. BEWARE OF TRAPS ON FRIDAY!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Pivot Point Daytrading Course
Thursday's PMT Chart: