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TFC Commodity Trading Forum

Daytrade Pit Pivot Points *PIC*


Good morning,

In yesterday's PMTJournal, PERSPECTIVE section, we projected,
" . . . it [is] 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."
With lots of swinging, some of which was profitably tradable
(ain't it grand to daytrade Pit Pivot Points), the tape
presented us with the more usual breather day. So much for
creative thinking!


Enjoy and be well,


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


E-mini ES H1
Thursday June 02, 2011

1 = Morning opens with a Bear plunge through the Close and a Reversal. We don't trust
DVS-based (pink arrow) 2-candle signals for longevity, especially into the fog. Pass.

NOTE: Yesterday's huge trading range made for wide PL spacing
far from the Price Action today. It is going to be off the
Close or nothing!

2 = Full-scale Double Top through the Close. That is definitely a self-confirming pair! Entry
below the fog.

A = Pulled in on large red inverted (Bull) Dragonfly. Initial stop advances above the high of
the candle, reducing At Risk.

B = Small DVS (pink arrow) drives another very large red inverted (Bull) Dragonfly through the
Low. The tail almost reverses enough to call for an Exit Now! Instead, move the profit-locking
stop above the Low/Free Trade plus a tik or two.

C = Small gap and a large red candle. Our position is now in violation of Pivot Magic Trading
Maximum Profit Giveback (MPG) rules. Mental stop at Giveback Level.

D = Late-in-the-Move DVS (pink arrow) warns that this move is almost over. Price Action
tapes a giant red candle. Once again our position is now in violation of Pivot Magic Trading
MPG rules. Mental stop at Giveback Level.

E = Large red Bear Dragonfly, and we are again in violation of Pivot Magic Trading Maximum
Profit Giveback rules. Mental stop at Giveback Level.

The next (white) candle retraces >62% for a mid-air reversal, which qualifies as a PMT Exit
Now! Signal. We get positive slippage as the Bears recover for one more candle.
+/- 4.75 points

Volume drops off for lunchtime drift.

3 = Volume perks for third higher low with a 2-bar "P" Reversal through the MA. That qualifies
as a PMT "S" Signal. We enter aggressively above the MA. At the close of the candle, advance
the stop to Free Trade and a couple of tiks.

F = Not really a large white candle, but since this is lunchtime we are worried about the
longevity of the Bull drive. I like the stop under the low of the candle (good ole
risk-conservative me!)

G = As Price Action nears the Primary Objective (the Close) the tape displays an exhaustion gap,
and a large white candle eases through the Low. This is a good time to apply my convention and
slip the stop into the gap.

H = Second healthy white candle closes above the Low. Per PMT stop rules, move the
profit-locking stop under the Low. Since we need to be thinking "Pivot Scalp Exit" a mental
stop might be a good choice. On the other hand, using a mental stop will require additional
attention in case Price Action zigs instead of zagging. Stay alert!

J = A Doji spikes the Close and retracts, triggering a Pivot Scalp exit (executed with alacrity).

The balance of the day is full of traps and false starts, as Price Action travels sideways in
and out of the fog for a Doji trading session.

(Daily, bottom chart)

Large red (Spinning Top) Doji day candle on Thursday,
as the Bears take a breather following Wednesdays
massive plunge. They probably will test the LT Trend
Channel Floor (lavender channel lines) on "Unpredictable
Friday", but overall, expect another breather before things
really heat up.



REMEMBER: Trade the Tape, Not my Prognostics!

=] ;-)>

Thursday's PMT Chart: