Number of messages in the thread: 1
1. Date: 2008-11-24 13:36:10
Subject: Pivot Points - Trading Friday's Tape - PIC
From: Asher <
a...@n...net.il>
Search message by this author
BS"D
PIVOT MAGIC TRADING JOURNAL - EXCERPT
Good morning and a good week,
Friday taped yet another sideways day with lots of traps and a giant
Price Action blast
during the last hour - hour and a half. This pattern represents the
BBs cleverly carving
out a daily profit while the market is confused and drifting. (It
also makes our
commentaries short and sweet!) The pattern seems to be repeating
quite frequently.
Make the most of it!
The market has plunged over a very significant precipice.
Red flag warning remains in effect.
****************************************************
***
E-Mini
Friday Nov 21, 2008
1 = Friday opens gap-up with a resounding bounce off the Pivot. No
preceding trend from the Overnight, so no entry.
2 = Large white Bull Dragonfly. Volume is positive. This is clearly
a slingshot of the MA, with the plunger pulled way back. Problem is,
the signal is too
far from either the Close or the MA for an entry.
This failed test of Thursday's crash low, however, is clearly a
reversal off a hard PL. As the move takes off (= A), crossing the
Close many experienced,
advanced, traders were tempted to promote the Low to a Primary PL and
to take the trade with initial stop advanced under the Close. Not for
beginners!
The BBs lose interest early, and head out to drink TGIF lunch.
3 = White Bull Dragonfly off the Close. No Volume support, and no
self-confirming pair of signals. Continue your lunch break!
Lunchtime drift is sideways, with Price Action gently bouncing, and
finally settling on the Close.
4 = Price Action plunges to test Thursday's Low. It's a trap. Price
Action bounces roundly off the red lines. DVS-based Signal, so even
if it were not so
clearly a trap, we wouldn't trust it for longevity.
5 = Failed TTT (blue arrow) of the preceding crash low (red lines).
DVS-based signal (red arrow) AND it doesn't prove.
Signal converts to a Double bottom (orange arrow, by definition a self-
confirming pair). Volume is massive (pink arrow). It is spot on the
3:00 Action Time
Zone, and we are pulled in as the massive white candle exits the
"green fog" Ambush Zone.
No PMT rule, but personally, I like the initial stop jumped to "free
trade" (good ole risk-conservative me). Resistance at the Pivot is
proven in fact, so
prepare for a Pivot Scalp exit possibility there.
A = Large white Spinning top/inverted (Bear) white Dragonfly. Could
be an exhaustion sign. Briskly, per our stop rules, move the profit-
locking stop under
the low of the candle, and prepare to exit.
B = Huge DVS (pink arrow) blasts a giant white candle through the
Pivot. Adjust strategy and consider the Pivot Scalp as a potential
PMT Scalp. Per our rules,
move the profit-locking stop under the Pivot.
Price Action stalls for a large 123 through the Pivot, and continues
on into the EOD Hiccup Danger Time Zone, after taking our position out
at the stop!
+/- 18.50 points
The tape displays a classic, V, checkmark shaped, EOD Hiccup (plum
lines), as Price Action continues north for a most vigorous assault on
the R1.
PERSPECTIVE
(Daily, bottom chart)
Even as the Bulls try to claw their way free, the gravitational pull
of the crash low keeps Price Action
inching south. A test of the dotted plum line S/R, Support-turned-
Resistance, looks to be in the works
for Monday. Not a lot of hope on the Daily tape for anything like a
miraculous market recovery though.
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/PivotMagic112108.
gif
Show messages with headings
Pages in this thread:
[
1]
Latest threads
Older threads
| 
Up