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Finance & Stock Groups Forum Index » Futures » Daytrading Pivot Points - Marubozu TELL - CHART
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| Author |
Message |
| Asher |
 Posted: Tue Aug 19, 2008 5:10 pm |
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Guest
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BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
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PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
High point of a very moderate trading day was the Marubozu TELL. A
huge DVS surge (pink arrow),
drives a mid-lunch, red, Marubozu to execute a terrifying sumo charge
through the re-enforced
(Daily, bottom chart, dotted blue line) S1. There was no tradable
circumstance at this juncture,
but the Marubozu is a very useful TELL, tipping off the BBs plans for
later in the afternoon.
In yesterday's PMTJ PERSPECTIVE Section we suggested:
" . . . Bulls are set to assault the higher Historical S/R (Daily,
bottom right chart, aqua line).
It will require a Massive Moveout Monday thrust to actually pull
free, however."
Well, the Bulls took the day off. As anticipated, without massive
Volume support, the Bulls were
unable to muster the thrust to pull free of the LT Ascending Triangle
base (Daily, bottom right chart).
******************************
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini
Monday August 18, 2008
1 = The pre day-session opening reversal (Overnight, bottom left
chart, blue arrow) develops force and Momentum like a waterfall. Day
session opens
with a large red candle (blue arrow), and another, and some more.
Volume is pounding. Although there was no Anomaly entry site, Price
Action tapes
a 2-candle 123 of the Pivot, an "S" type signal, a second chance to
join the ongoing move.
NOTE: The tape displays:
* A 123 follow through from a proven, preceding Reversal
* Massive Volume
* Blasts through the Pivot
* Nearby S/R interference (underscored, today, by the fact
that the S/R is a re-enforced Primary PL, S1, light blue dotted
line) potentially threatens to close the Price Window.
Our situation-specific, set of aggressive entry techniques permits/
advises/was designed for, just such an encounter.
Initial stop advances above the Pivot.
A = Most of the wispy and inverted candles inside the circle are
welcome opportunities to tighten our profit-locking stops, per our PMT
rules. To the avid
reader of the tape, they further reveal that the brakes are on, as
Price Action skids to a gentle encounter with the re-enforced PL
Support, S1.
B = Touch-down, and immediately Black Volume Bar of Death (pink arrow)
Doji barely stabs through the S1, absorbing the last remnants of the
impact. The
instant you see white on the next candle, Exit Now! +/- 4 points
[SNIP]
C = Sudden, huge DVS, as the Bears slam through the S1 with a massive
red Marubozu (full-bodied candle without wicks).
Mid-lunchtime, and with nary a tradable signal in sight, this becomes
a TELL.
Looking back, BTW (blue arrows) the Bear TELL is already evident.
Earlier a DVS, to stop Price Action from climbing to the
Pivot, followed by a whole string of smaller Bear Volume bars, is a
TELL that the BBs want to keep the Price Action steady,
without upward drift.
Again, mid-lunchtime, a huge DVS (green arrows) suddenly drives Price
Action through the next serious level of Support
(light blue line), which is also a test of the base of the recently
exited LT Ascending Triangle (lavender lines). Once more,
the tape displays a violent breach of a recurring Historical S/R,
which, though not tradable by us, is definitely an
informative TELL.
3 = Failed TTT of the lavender line leads to a successful attempt in
the opposite direction. This is finally a REAL afternoon 123.
D = Large red Bear Dragonfly. This failed test of the MA is also in
range to be called a 123 off the S2. Don't think it too wise to enter
so close to the potential
floor at S3 (which is also the hypotenuse of the LT Ascending
Triangle, Daily, bottom right chart), but you might want to add
contracts (to no avail, = E!)
E = Readers of the Tape, witness TA a classic!
Looks like the Bears, hoping not to stir up interest and fuss, open
their parachutes,
and waft to a gentle perch atop the sensitive re-enforced S3.
F = Large red candle through the re-enforced S3. Per PMT stop rules,
move the profit-locking stop above the S3.
More Reading the Tape lore!
Late DVS (pink arrow) only generates a very small Dragonfly, clearly
tells us that
the BBs are unable to resume the Bear move. With an S3 test coming,
our stop,
just above the S3, is in danger. Rather than give it back. Cancel-
Replace
+/- 4.25 points
IMPROTANT: To enable you to respond briskly to the tape, always have
your orders prepared in advance.
[SNIP]
PERSPECTIVE
(Daily, bottom right chart)
The tape speaks for itself. Following a second test of the base,
Monday's day candle closed back inside the LT Ascending
Triangle (lavender lines). Price Action is winding tighter and
tighter into the nose of the Triangle. As the lines converge,
the Bulls must now blast free; otherwise, the upward pressure will
dissipate, and via the swinging door phenomenon,
the Bears will take over the ball.
REMEMBER: Trade the tape, not my prognosis!
Asher
=]  >
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%20Trading.html
Monday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic081808.gif |
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