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TFC Commodity Trading Forum

Pivot Points Define the Move *PIC*


Good morning,

As Price Action dropped from Pivot Point to Pivot Point, we scored
pretty well during the morning hours on Wednesday's giant run down.
Volume was uninviting, but the Reversal Signals indistinct throughout
the afternoon session, leaving us on the sidelines counting our AM
profits to EOD.

Enjoy and be well,


"When you speak of success,
you attract success."
Napoleon Hill


E-mini ES H1
Wednesday June 01, 2011

Tuesday morning opens gap-down with an Anomaly (Overnight, bottom left chart) off the Pivot.

A = We are pulled in on a large red candle through the Mid. Initial stop advances above the Mid.

NOTE: The large range of the day's trading makes candles
on the standard appear small. Don't be confused as the
day progresses.

B = DVS (pink arrow) drives a giant red candle through the S1. Normal stop placement leaves the
position in violation of Pivot Magic Trading Maximum Profit Giveback (MPG) rules. Mental stop at
Giveback Level.

C = Large red candle comes to a halt at the LT Trend Channel Floor (Daily, bottom right chart,
lavender channel lines). Per PMT stop rules, move the profit-locking stop above the high of the

D = Large red candle through the lavender line. Per our rules, move the profit-locking stop
above the line. Twin Towers DVS pattern (pink arrow) warns that a stall is coming on the next

Mid-air Reversal took most of us out. +/- 7.50 points

E = If you adjusted for the bloated ABS and weathered the S-trap, you were rewarded with a large
red candle. Normal stop placement leaves the position in violation of Pivot Magic Trading Maximum
Profit Giveback (MPG) rules. Mental stop at Giveback Level.

Volume has dropped off. Prepare for possible Pivot Scalp exit.

F = Volume is up a bit, and a large red inverted (Bull) Dragonfly stretches to tap on the S2 and
retracts. Pivot Scalp exit. +/- 10.50 points

Lunchtime starts early, and Price Action drifts sideways atop the S2.

2 = A 2-candle 123 on DVS Volume (pink arrow) pulls some of us in aggressively. Move the initial
stop to Free Trade and a tik at the close of the candle.

G = Twin Towers (pink arrow) tells us that the mid-lunch move has been halted at the 62% Fib-line
reinforced S3. Move the profit-locking stop above the high of the candle. Be sure to make that
a mental stop enabling brisk exit in case the S3 holds.

It does. +/- 3.75 points

Volume again peters out, and we (sadly) wind up on the sidelines for the remainder of the day, as
Price Action, easily contained by MA Resistance, heads south without us.

(Daily, bottom right chart)

LT Trend Channel Ceiling (lavender channel lines) holds,
as Price Action reverses with a gigantic red day candle
through the Fibonacci 62% Retracement Level (purple
dotted line).

Since most of this dive took place on feeble Volume, it
fair to assume that the attack on the LT Trend Channel
Floor will continue on Thursday, instead of the usual
breather day necessary following a monster candle.


REMEMBER: Trade the Tape, Not my Prognostics!

=] ;-)>

Wednesday's PMT Chart: