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Finance & Stock Groups Forum Index » Futures » Pivot Point Trading - Pivots Rule! - Chart
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| Author |
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| Asher |
 Posted: Thu Aug 16, 2007 4:40 pm |
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Guest
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BS"D
Learn to Read the Tape
Exploit Pit Pivot Points
KISS Daytrading Course
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PIVOT MAGIC JOURNAL - LITE
Good morning,
Just got back from an exhausting visit overseas and I'm wrung out.
Was nice to get back in time for a 35 point run in the mini though!
Be well,
=]  >
******************************
BS"D
Pivot Magic Trading
First rule:
"...Any time you don't know what is happening, get out!"
******************************
Wednesday, August 15, 2007
Morning session opens at the Close and trades up to the Pivot.
1 =Large red Bear Dragonfly off the Pivot. Entry below the "green
fog" on a large red candle permits us to advance the initial stop
above the Close. Good thing, cause Price Action immediately reverses
taking us out for a small loss. Nice start! Booo!!!
2 = Healthy 2-bar Reversal behind the Pivot. Entry below the Pivot
with an acceptable Price Window to the Close.
A = Second healthy red candle closes below the Pivot. Per our rules,
move the profit-locking stop briskly above the Pivot.
Just in time for the market to turn sideways! Thinking potential
Pivot Scalp type exit at the Close.
3 = DT Double-top/2-bar off the Pivot. Add contracts if you are in
the trade from = 2. Price Window is a bit tight to enter a fresh
position here. Especially so close to lunchtime drift.
B = Failed test of MA. PMT stop rules tell us to move profit-locking
stop above the MA. Finally at "free trade" plus.
C = Large red candle through the Close. Move profit-locking stop above
the Close.
D = DVS-based Doji Sandwich reversal off the Low (mid-air). With Bull
Volume bulging (middle chart) mid-lunchtime, this is a classic Exit
Now!
+/- 8.75 points
Lunchtime drift goes on interminably, stitching back and forth at the
Close.
4 = Multi-top reversal behind the Pivot. Viewed from the higher time
perspective (10-Minute, bottom left chart), it's a strong Doji
Sandwich. Nice confirmation. Entry below the Pivot. With Support at
the Close thoroughly proven, be alert for a Pivot Scalp exit there.
E = Large red breakaway candle pulls us in, and permits us to advance
the initial stop above the Pivot, for well-controlled At Risk.
F = Large red candle. Per our stop rules, move profit-locking stop
above the high of the candle, "free trade" plus a bit.
G = Another large red candle. Move profit-locking stop above the high
of the candle.
H = Large red Bear Dragonfly through the Close. Since our position is
now in violation of the 2-Point Maximum Profit Giveback rule, AND we
suspect S/R at the Close to influence Price Action, move profit-
locking stop aggressively above the Close.
J = Giant red candle through the LowW and Low. Again take the
aggressive choice. Move the profit-locking stop above the Low.
Although our 2-point Giveback level is being tested, each of the next
three candles is clearly a Bear Dragonfly (a great continuation sign).
K = Again our position is in violation of the 2-Point Give back
rules. Since Bear Momentum is strong, call this a large red candle
and move the profit-locking stop above the high of the candle.
L = Rather large bodied spinning top. Always looking to reduce risk,
call it a large red candle and move the profit-locking stop above the
high of the candle.
M = Wispy white Bull Dragonfly through the S1. We prepare to exit if
next candle closes white or reverses above the open of the red
spinning top, = L. Instead, Price Action did a 123 continuation at
the S1 and we added contracts!
N = Very large red candle. Move profit-locking stop above the high of
the candle. EOD hiccup time, so, with well over 2-points in jeopardy
again, instead of calling the large red Bear Dragonfly (green arrow) a
large candle and inching the profit-locking stop a bit tighter (above
the high of the Dragonfly), place a mental stop at the 2-point Profit
Giveback level.
P = Got a bit of a scare, but the checkmark shaped EOD hiccup proceeds
bearish! Failed test of MA. Jump the profit-locking stop above the MA
and exhale!
Q = DVS (middle chart) generates a huge Marubozu (full-bodied candle
without wicks). Single candle puts us in violation of the 2-Point
Giveback rule. Therefore, put mental stop at the 2-point level. As
always with a Marubozu (doubly at EOD hiccup Zone), wonder if the
troops will rally into the breach formed by the sumo assault, or if
Momentum will flounder.
R = Giant DVS (middle chart) results in a Doji spike through the S2.
Momentum is spent. The instant the next candle shows white Exit Now!
+/- 28 points
YESSSS!!!!! It's great to be back!
PERSPECTIVE
(Daily bottom chart)
Clearly, the market is in a bear trend (lavender trend channel lines)
with Price Action bouncing against the channel floor. Don't be too
shaken by this. Though folks are all screaming "crash", in July
Price
rose to the pre high-tech crash level. Though we are in the
strongest
retracement since then, this is hardly a recession! Yet!!! LOL
Personally, I'm expecting a slight bounce of the Trend Channel floor
Thursday and Friday.
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] >
Pivot Magic Trading Course
http://www.TradingThingys.com
Wednesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic081507.gif |
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