DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
As we anticipated, Thursday's Price Action was mostly inside the
LT SW Channel (Daily, bottom chart, blue channel lines).
We got a large bite out of the early morning dive, but our Money
Management rules bid us to let two small Pivot Scalps go by.
Better safe than sorry!
Enjoy and be well,
E-mini ES Z0
Thursday October 28, 2010
Thursday morning opens gap-up at the R1.
1 = Would like to call this (blue arrow) a 123 off the R1, but little matter since entry is below the blue
line, LT SW Channel Ceiling anyway.
DVS (pink arrow) blasts an aggressive-entry 2-candle 123 (orange arrow) of the blue line and we are in.
A = Breakaway gap, and this red candle puts our position in Pivot Magic Trading Maximum Profit Giveback.
Anticipating Support at the Close, put a mental stop in the gap in preparation for a lightening Pivot Scalp
B = Surprisingly, another DVS (pink arrow) pumps Price Action well through the Close. Per our stop rules,
move the profit-locking stop above the Close.
C = Black Volume Bar of Death (pink arrow) Doji. Place a stop above the high of the candle. Be alert for
an exit on white.
D = Final DVS (pink arrow) exhausts Momentum with an inverted (Bull) red Dragonfly taping on the Pivot.
Pivot Scalp exit as Price Action retracts. +/- 5.50 points
2 = Tight but clear Head and Shoulders at the Close. The last candle in the signal breaks below the right
shoulder, making it ripe for aggressive entry. The Price Window to the Pivot is too small for entry. Sit.
3 = If we squint, we can see a Double Bottom behind the Pivot. Even though Volume appears to be vaguely
supportive, the proven Close effectively shuts the Price Window. We pass.
Already it is clear that we are blocked from entry everywhere but below the Pivot. Thus, as sideways drift
hugs the underside of the Close, we know to shut down early and make better use of our day.
The LT SW Channel Ceiling holds for a classic "V" check mark shaped EOD Hiccup (plum lines), and the day
closes back at the Close.
(Daily, bottom chart)
Price Action moves a bit deeper into the LT Sideways Channel (blue channel lines)
with Thursday's small white Doji day candle. Except that tomorrow is "unpredictable
Friday", a Channel Floor test definitely looks imminent.
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: