 |
|
|
|||||
| « Previous thread | Next thread » |
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
CAVEAT
The market is very jittery, hovering at a potentially significant
precipice.
Therefore, the red flag warning is still in effect. Now is a good
time for
paper trading and practice. Read and heed NOTES A & B, below.
Friday was a minefield, full of traps. The market is excited (ABS is
large) and skittish
(Price Action is basically sideways). Every small hiccup "scalp"
travels a dozen points
or more, in minutes. Our confidence is boosted as we once again
observe how careful
application of the PMT rules, nerves of steel, close attention to the
tape (and our
primary indicator, Volume), together enable the (well-funded) and
experienced PMT
trader to avoid traps, and to profit even from the occasional
"accidental" blips.
******************************
NOTE A: The ABS has been bloated for several weeks. Should bloated
ABS
conditions continue, high-wind warnings, and precautions apply. To
avoid
getting stopped out at every Price adjustment, expand the Pivot Magic
Trading Maximum Profit Giveback (MPG) and stop placement spacings.
To reflect the ABS, and to avoid sudden-death Price Action swings:
· MPG limit needs to at least as large as, or larger than, the average
candle.
· Stop placement (still applying our PMT stop rules) spacings backs
off by
to approximately 1/2 ABS.
NOTE B: The expanded spacings obviously make for greater risk
exposure.
Of course, the profit-per-minute potential increases as well.
· This represents an acceptable threat to well-funded Advanced
traders.
· Intermediate traders might wish to trade fewer contracts than
usual.
Put less of your funds At Risk.
· Beginning PMTers might be wise to sit out the fireworks.
That said, let us proceed.
****************************************************
***
E-mini
Friday Oct 24, 2008
[SNIP]
BTW, if you got pulled in, or aggressively entered on = 1, you have
just had a taste of Friday traps! Unless you like the taste of ashes,
be demanding today.
2 = Ascending Triangle (lavender lines) forms, as pressure builds
against the S1 Resistance. DVS (pink arrow) blasts Price Action to
breakout and rip through
the S1.
* We don't like to enter Triangle breakouts.
* TGIF lunch is poured in just 15 minutes.
3 = S1/Triangle breakout retest fails with a thundering 123. There is
not enough Time Window before the inevitable TGIF exodus to expect the
Bulls to achieve
the Pivot; so, this second, weaker, DVS (pink arrow) warns us of this
trap.
B = Fell for the trap? OK. Our rules provided a safety net.
* If you entered on = 2, MPG violation means a mental stop at Giveback
level.
* If you entered on = 3, one glance at the Volume and the distance
Price Action
has already traveled, hopefully suggested stop at "free trade".
Either way, the DVS spells exhaustion.
The next candle, a red Bull candle, not only faces the wrong
direction, but fails to clear the close of = B. Momentum is gone.
The instant the next candle shows
red, Exit Now! Scratch! Breakeven/profit
Price Action once again droops to the S1, where it turns to drift
sideways when the BBs go out to party. Except for minor spasms, the
Volume is dormant (blue
oval), and Price Action clings to the S1 PL.
If our busted trades didn't provide a sufficient TELL for today, this
should. Lots of traps, but Price Action is mostly sideways. The BBs
are quietly, but nervously
scalping pennies in fearful anticipation of the FOMC on Wednesday.
Even though the "young Turks TELL" (aqua oval), gives away the late
afternoon plan (a Bull scalp/trap, of course), it also clearly reminds
the experienced
reader-of-the-tape that Price Action is not going to leave the
vicinity of the S1 for very long today.
4 = The afternoon plan goes into effect with a powerful 123 through
the S1. If we are really hungry to trade, you might stretch it a bit
and call the 2:00 mid-air/MA
reversal the beginning of a preceding trend. Thus, the 123 is an "S"
Signal, with strong Volume support (pink arrow).
Aggressive entry (the TELLS already have warned that anything you do
today must be crisp and aggressive). The candle closes with MPG
violation. Mental stop
at Giveback/"free trade".
C = Extra-ordinary DVS (pink arrow), as the Bulls expend their
Momentum, fairly throwing themselves, desperately, in the direction of
the Pivot. By the time
Price Action collapses back 3-5 points, our aggressive mode behavior
kicks in and we bail out. +/- 14.75 points And that's on a 10-
minute flicker of a bluff move.
EOD Price Action returns to the S1, of course.
PERSPECTIVE
(Daily, bottom chart)
Friday's day candle droops through the LT SW Channel floor (light blue
channel lines), dipping almost
to the previous low of the Reversal (lavender line). The bottom wick
is a bit long, so there still could
well be a failed attempt with a TTT Corollary attempt at the LT SW
Channel ceiling in the offing.
However, by juxtaposing our observations as daytraders, while looking
at the trading tape (5-Min,
top chart), we note that the day market is actually still in a
sideways mode. Is this a whisper of the
stillness preceding the upcoming FOMC?
REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%2
0Trading.html
Friday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic102408.
gif
| « Previous thread | Next thread » |
earn money in parttime online jobzzz
Let Me Show You How Easy To Build Your AVON, SeaAloe, Or ANY Online Business
Have You Heard About His Secrets?
Read the Tape and Trade the Momentum - PIC
Why Some People Almost Always Make Money in the Options Markets?
Stats misc.invest.futures (last 7 days)
CHANGING VIEWS ECONOMIC MELTDOWN CYBER WARFARE
Up