BS"D

RULES AND CAVEATS

Pivot Magic Trading Course
First rule:
"...Any time you don't know what is happening, get out!"

http://www.TradingThingys.com

MARKET IN REVIEW - LITE
Tuesday (21 December 2004)
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Tuesday presented a nice PMT, full-range Sideways Channel trade.
Well almost full-range, had to wait till Price Action crossed the
Pivot to enter.

Morning session opens slightly gap-up just under the Pivot. Price
Action sews back and forth through the Pivot for the first hour
and a quarter, and then dips down to close the opening gap.

1 = Slushy Reversal completes the formation of a Sideways Channel
(Daily, bottom right chart, lavender blue channel lines). See FAQ
on Sideways Channel trading.

NOTE: This Signal looks a bit less slushy
on the 10-Minute, bottom left chart.

With Sideways Channel established, PMT Traders demote the status
of all PLs one degree, except for the Pivot. Volume today is also
rather vague. Waiting for a Secondary signal above the Pivot to
enter.

2 = 123 "S" Signal soundly bounces north off the Pivot. Volume
increases (not for long, sadly) to support the move (middle chart).
Price Window to the Channel Ceiling (primary objective) more than
meets our PMT Reward criterion.

A = Large white candle through the Mid. Per PMT rules, take this
opportunity to move profit-locking stop under the Mid.

B = Large white candle. Move profit-locking stop under low of the
candle, "free trade" plus.

C = Failed test of MA. Move profit-locking stop under MA.

D = Failed test of MA. That Desperation Volume spike red Dragonfly
at about 1:15 made us a bit nervous. Gladly, stop rules now permit
us to move profit-locking stop under MA, and let out our breath!

E = Price Action overruns R1 on its way to the Channel Ceiling
objective (lavender line). Call it a large white candle, and move
profit-locking stop under R1.

F = Large white Marubozu (full-bodied candle with no wicks) crosses
the High. Select the more aggressive PMT stop placement option and
move profit locking stop under High, rather than under the low of
the candle.

G = White Bear Dragonfly off the Channel Ceiling (lavender line).
Desperation Volume spike (middle chart). Expect a reversal at the
3:00 Reversal Time Zone and exit as soon as the Price Action moves
back under the Channel ceiling. +/- 7 points

Alternately, since the next Volume bar, although greatly diminished,
is green, you might have chosen to hold for another solid hit on the
ceiling to exit. +/- 6.75 points

EOD hiccup returns Price Action to the Channel Ceiling.

Before holiday breaks, the BBs often like
to push Price Action up toward the top of
the long-term trend channel (Daily, bottom
right chart, green channel lines). But...

REMEMBER: Trade the Tape, not my Prognostics!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com

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Tuesday's PMT chart:

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