BS"D

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

Good morning,

As we predicted in yesterday's PMTJournal, the Historical S/R (blue line)
re-enforced LT Trend Channel Floor (green channel lines) presented
insurmountable Support on Thursday, and Price Action bounced back,
closing well-inside the Trend Channel.

Most of our trading session traded sideways, far from our trusty Pivot
Levels. Except for one nice trade in the morning, we sat (boring!), our
funds protected by PMT risk-conservative Money Management rules.

TGIF!!!

Enjoy and be well,

******************************

E-mini ES Z0
Thursday November 18, 2010

When Thursday morning session opens way gap-up at R3, we do a quick adjusted recalc for the
PLs. Alas, R3 still comes out 1190.50, so it makes little difference.

1 = A powerful, DVS-driven (pink arrow) 123 Continuation off the R3 is sufficient for us to enter
aggressively (once we adjust mentally to entering north off the R3 Extreme). To ease our anxiety,
at the close of the candle we move the stop to Free Trade and a tik, for instant locked-in profit.

A = Large white candle. Normal stop placement will leave the position in Pivot Magic Trading
Maximum Profit Giveback (MPG) violation. Mental stop at Giveback Level.

B = Another large white candle puts our position right back in MPG violation. Furthermore, we
note that the Volume is steadily decreasing (lavender line), suggesting a brief move. We are
thus double-glad to place a mental stop at Giveback Level.

C = Black Volume Bar of Death (pink arrow) Doji. Prepare to exit on first sign of red.
+/- 5 points

It turns out to be an S-trap stall, and one last large white candle climbs another few points on
a DVS, without us.

Volume suddenly drops off, and Price Action turns sideways, twining around the MA to EOD, with
nary a PMT trade for the rest of the day.

D = This Price Action reversal in outer space shoots any hope of possible interaction with a PL.
The last of us shut down for the day.

EOD Hiccup (plum lines) was right on time, with a classic "V" checkmark pattern.

PERSPECTIVE
(Daily, bottom chart)
On Thursday 24-hour Price Action bounced off the strong Support
at the Historical S/R (blue line) re-enforced LT Trend Channel Floor
(green channel lines) and taped a large white candle, driving deeply
back into the LT Trend Channel.

BEWARE OF TRAPS ON FRIDAY! BE PREPARED FOR ANYTHING,
AND GUARD YOUR FUNDS!

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: