Pivot Points Rule!
Just exactly as we projected in yesterday's Daily Pivot Magic Trading Journal,
PERSPECTIVE section, "High probability of another 50% test and a breather day
Price Action responded spot-on the Pivot Points and we scored quite nicely
(+/-11 points) by following the basic PMT rules.
Enjoy and be well,
DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT
"Don't gamble; take all your savings and buy some
good stock and hold it till it goes up, then sell it.
If it don't go up, don't buy it."
E-mini ES U1
Wednesday July 13, 2011
1 = Morning session opens gap up, Price Action reverses, and drives for a massive 2-bar "P"
off the Pivot. DVS Volume (pink arrow), and we enter aggressively. At the close of the
candle our position is (happily) in Pivot Magic Trading Maximum Profit Giveback (MPG)
violation. Mental stop at Giveback Level.
A = Giant white inverted (Bear) Dragonfly through the R1. Per our stop rules, move the
profit-locking stop under the R2.
B = If you were fast on the draw, you might have exited (>2 points retracement from the high
of = A, +/- 3 points) and reentered aggressively on the 123. Otherwise, with Volume still
raging, you held tight.
C = Large white candle and our position is in MPG violation. Mental stop at Giveback Level.
D = Large white candle through the High. Per PMT stop rules, move the profit-locking stop
under the High. Only to get taken out as the next (red) candle reverses for an S-trap.
+/- 6.25 points
Too bad the S-trap was too fast for us to employ the New S-Trap Pull-back Lock-in Evasion
Maneuver, because the move continued climbing for another 3 points, without us. Sigh!
Price Action turns sideways well short of the R2, and continues to drift sideways through
2 = Without any trading interest (Volume), this 2-bar off the MA, which would otherwise
qualify as a PMT "S" Signal, is just an interesting blip Pass.
3 = Volume comes to life and we enter aggressively on this red Bear Dragonfly kickoff from
a 123 off the underside of R1.
E = large red inverted (Bull) Dragonfly/failed test of MA. Per our stop rules move the
profit-locking stop above the MA, for reduced At Risk.
F = DVS (pink arrow) pumps a giant red candle through the Mid. Per PMT stop rules, move
the profit-locking stop above the Mid.
G = Small exhaustion gap, and a large red Bear Dragonfly noses through the Pivot. This
is a classic opportunity to employ my convention and to move the profit-locking stop into
H = Black Volume Bar of Death Doji. Change the stop to a mental stop and prepare to exit
on the first sign of white. +/- 4.50 points
Turns out to be another S-trap retest of the Pivot. Price Action continues south to close
the opening gap, bouncing gently back to the Pivot at EOD.
(Daily, bottom chart)
Wednesday taped a large white Doji breather day candle at
the 50% Fibonacci Retracement level. Things could go either
way on Thursday. Stay alert!
BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!
REMEMBER: Trade the Tape, Not my Prognostics!
Wednesday's PMT Chart: