Number of messages in the thread: 1
1. Date: 2008-11-05 12:40:22
Subject: Pivot Point Daytrading - Wait and Watch Mode - PIC
From: d...@g...com Search message by this author
BS"D
Daytrading Course
Learn to Read the Tape
Exploit Pit Pivot Points
******************************
PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning,
Still inside the large LT SW Channel, but the Market is in an
optimistic, though wait and see, modality.
Clipped a few points out of the Election Day Price Action. Fairly
short and sweet today.
The market is hovering at a potentially significant precipice.
Therefore, a red flag warning is in effect.
[SNIP]
Pivot Magic Trading
First rule:
"Any time you don't know what is happening, get out!"
******************************
E-mini
Tuesday Nov 04, 2008
Following overnight trading, US Election day opens gap-up above the
R2, and settles gently to perch atop the PL.
1 = Not quite a J-hook, 2-bar "P" Signal at the R2. Volume picks up
to confirm (pink arrow). Entry placement, of course, is above R2.
A = Pulled in by a large white candle through the R2. Advance initial
stop under R2 for well-controlled At Risk.
B = Giant white candle puts our position in violation of Pivot Magic
Trading MPG rules. Mental stop at Giveback level.
C = Doji stall at R3 Resistance put us on alert, but a large white
candle soundly pierces the PL. Per our stop rules, move profit-
locking stop under the R3.
BTW, this could be called a 2-candle 123 continuation, which would
justify the addition of contracts.
D = Large white inverted (Bear) Dragonfly. PMT stop rules advise to
move profit-locking stop under the low of the candle.
E = Very large white candle puts our position in MPG violation.
Mental stop at Giveback level.
F = Large white spinning top. Twin Towers DVSs (pink arrows) say
stall/sag next. Protect the position. Per our stop rules, move
profit-locking stop under
the low of the candle.
G = Slight stall, and DVS (pink arrow) blasts a tremendous white
candle, through the MidM, to test the last LT SW Channel ceiling
(Daily, dotted light blue line).
There, Price Action stops cold. This daring assault puts our position
in particularly dangerous MPG violation. It may well represent the
final exhaustion of pre-
lunchtime Bull Momentum. Mental stop at Giveback. Prepare to exit.
2 = Reversal "P" off the light blue dotted line is firstly an Exit
Now! +/- 9 points
Volume immediately drops off for lunchtime drift, and the move never
materializes.
[SNIP]
4 = Failed TTT of the LT SW Channel ceiling. TTT Corollary says R3/R2
retest is coming.
[SNIP]
PERSPECTIVE
(Daily, bottom right chart)
What's the expression? "Gotta give it up to get it!" In Monday's
Daily Pivot Magic Trading Journal discussion we
finally lost hope for an imminent Bull assault on the dotted light
blue line, so Tuesday we got it!
Not anywhere so much Price Action hysteria from the early
announcements or exit polls as expected. Market
remains conservative and concerned (inside the SW Channel), but
somewhat elated, optimistic, and hopeful
(trading at the SW Channel ceiling). Only time will tell.
Except for some celebratory Price Action blips, fireworks, expect
traders to prefer to always return to the safety
of the Channel. The BBs will effect Scalping forays, but
fundamentally, will most likely assume a wait and watch
posture.
REMEMBER: Trade the tape, not my prognosis!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.tradingthingys.com/PMTJ/Commodity%20Day%2
0Trading.html
Tuesday's PMT Chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic110408.
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