Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC TRADING JOURNAL - EXCERPT

In yesterday's Daily Pivot Magic Trading Journal, PERSPECTIVE: section, we noted:
". . . Thursday could go either way, but following a failed TTT of the Channel ceiling,
a TTT Corollary attempt at the LT SW Channel floor seems very likely."

A bit of an understatement, but technically a correct call. Fishing was great! Read on.

TGIF!!!
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E-mini
Thursday Sept 04, 2008

Morning session opens gap-down below S1, taping a protracted battle to re-enter the LT SW Channel floor (dotted aqua line/first layer of floor).

1 = Failed test of S1/dotted aqua line. Need to count the Dojis to get a preceding trend, but this is a 2-bar off the S1/dotted aqua line. Price Window
to the extreme LT SW Channel floor line (solid aqua line) is open enough for a PMT entry.

A = Entry on a large candle through the Low. Initial stop advances above the high of the candle.

NOTE A: Even the small candles today are 2-pointers. With bloated ABS, in order to avoid getting
stopped out at every Price adjustment, consider expanding the stop placement and Maximum
Profit Giveback spacings.

B = DVS (pink arrow) drives a huge red candle through the LowW/extreme aqua line. Per PMT stop rules, move the profit-locking stop above the LowW.

2 = Large red candle, the second healthy red candle to close below the S2. Per our stop rules, move the profit-locking stop above the S2.

This 2-candle 123 continuation is an "S" signal, second chance to enter the ongoing move. For those already in the position, add contracts.

C = Volume surge continues, generating a large red candle. Move the profit-locking stop above the high of the candle.

D = Volume still strong. Large, red, Bear Dragonfly candle. Move the profit-locking stop above the high of the candle.

E = Finally, following a bit of a sideways trading, attempts to cross the S3, Price Action tapes a failed test of the MA. Per our stop rules, move the
profit-locking stop above the MA. Exhale! (no rule for that!)

F = DVS (pink arrow) squirts the Price Action through the S3. Per our rules, move the profit-locking stop above the S3.

NOTE B: Stop spacing is expanded:

* Large ABS

* Don't want to get stopped out during lunchtime drift.

NOTE C: This final Volume burst immediately before lunchtime lull is a Bear TELL for later.
The Bears want to continue south after luchtime sideways drift.

G = Small white candle is a failed test of MA. Inch profit-locking stop down 0.50 point, above the MA.

A Volume surge (pink arrow) becomes our second Bear TELL. Meanwhile, the large red candle is an invitation to move the profit-locking stop down a
bit more, above he high of the candle.

The Bear Volume tapes a Twin Towers, warning that a stall/sag/retest is coming next.

Volume dies, so the tape reads "sideways trading" rather than the feared S3 retest.

H = Second healthy red candle closes below the LowM. Per PMT stop rules, move the profit-locking stop above the LowM.

J = DVS (pink arrow) drives a large red candle. Per the rules, move the profit-locking stop above the high of the candle.

Black Volume Bar of Death/Doji (blue arrows).

All but the most experienced PMTers promptly exit the instant the next candle shows white. +/- 21.75 points

[SNIP}

Trading instead turns sideways. After only one or two candles it is apparent that there will be no rapid run up before 3:00.
Shut off the monitor early and go find someone in need of help or a kindness. Definitely something more worthwhile than
staring at the tube and chuntering in your beard!

PERSPECTIVE
(Daily, bottom chart)

What's there to say? The tape speaks for itself. Huge-ranged, red day candle blasted through the LT SW Channel floor area
(aqua lines) with ease, and continued to trade all the way down, (roughly) to an old Historical S/R (double aqua line that
graced our charts back near the end of July).

Were today any day but Friday, following such a monster candle, with some certainty we'd anticipate a breather day.
But, alas, today IS Friday. BE PREPARED FOR ANYTHING AND WATCH OUT FOR TRAPS!

REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html

Thursday's PMT Chart: