Day Trading Pivot Points - Profitable Morning - CHART

Home › Groups › misc.invest.futures › Day Trading Pivot Points - Profitable Morning - CHART

Number of messages in the thread: 1

1. Date: 2008-11-18 16:12:56
Subject: Day Trading Pivot Points - Profitable Morning - CHART
From: Asher <a...@n...net.il> Search message by this author

BS"D

PIVOT MAGIC TRADING JOURNAL - EXCERPT

Morning was pretty profitable and there were lots of interesting
formations to discuss.
BBs going for a TTT of the contract low on Tuesday?

The market is still hovering at a potentially significant precipice.
Therefore, a red flag warning remains in effect.

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

Monday Nov 17, 2008

1 = Monday morning opens with what seems to be a powerful Anomaly
(Overnight, bottom left chart) off the Close, completing outside the
"green fog". Great!

Move never materializes.

2 = Following the initial false start Anomaly, we feel that this 2-bar
"P" behind the Close needs a self-confirming pair to enter. And
that's what
we get! A 123 continuation crosses the Close, crosses the MA, and
exits the fog, pulling us in. Initial stop above the MA (no rule, but
personally,
I'd jump the stop to "free trade" and a tik).

A = DVS (pink arrow) drives a giant red candle, putting our position
in serious PMT Maximum Profit Giveback (MPG) jeopardy. Mental stop at
Give back level.

B = Lower-Low-Turns-White is one of our Exit Now! signals (this time,
by the close of the candle it is a mid-air reversal as well). +/-
8.75 points

3 = As this 123 "S" signal turns into a double 123 (self-confirming
pair) and blasts through the Close, exiting the fog, some of us got
pulled in, in
spite of the time. Others (like good ole risk-conservative me),
fearful of getting trapped into a long lunchtime battle over the
Close, hesitated.

C = Volume (pink arrow) really comes to life and the rest of us,
suspecting the BBs are bullishly goosing the lunchtime drift,
encouraging Price
Action to waft up to test the Pivot, get pulled in on this giant white
candle. Whether you were pulled in on = 3 or = C, instant MPG
violation
advances the stop to Giveback level.

D = Large white spinning top. Per our PMT stop rules, move the profit-
locking stop under the low of the candle.

E = Large white candle and MPG violation. Mental stop at Giveback
level.

F = Black Volume Bar of Death (pink arrow). When the next candle
(large white spinning top) initially shows red, hopefully you give the
lunchtime
drift the prescribed breathing room (Pivot Magic Trading course,
Volume I., page 101) and didn't stop yourself out.

G = After a 2-bar breather, the Bulls recovered the Momentum with a
large white candle. Regular stop placement rules leave the position
in MPG
violation, so place a mental stop at Giveback level.

J = Large white Bull Dragonfly. Again the position is in MPG danger.
Mental stop at Giveback level.

H = Small gap, and a large (is a 3-pointer large today?) white
spinning top puts our position in violation of the MPG rules.

The gap is surely exhaustion, but we are very close to the Primary
Objective. Our rules place the profit-locking stop under the low of
this candle,
giving us an inverted Risk:Reward ratio, 2.75:2.00. This is not
acceptable, so the best choice is to exit immediately, or if your
greedy, apply my
special convention of putting the stop in the gap, making R:R slightly
better at 1.00:2.00.

No matter how you sliced it, the next, giant red candle took us out.
+/- 24 points (from = 3) ; +/- 22 points (entering on = C)

[SNIP]

PERSPECTIVE
(Daily, bottom right chart)

If Friday rebounding off the light blue dashed S/R left us EOD nervous
about an upcoming TTT attempt
at the contract low area (dotted plum line), the down-arrow described
by Monday's red Bear Dragonfly
day candle is positively threatening!

REMEMBER: Trade the tape, not my prognosis!

Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%2
0Trading.html

Monday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic111708.
gif