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TFC Commodity Trading Forum

Making Room to Trade a Dull Market *LINK* *PIC*

BS"D

Good morning,

In order to make some room to trade in a dull market, the BBs once
again executed a Plunge-Slide maneuver on Tuesday. We took a couple
of decent bites out of the Plunge portion.

Biggest question of the day was how early we could shut down, quit
and end the pain!

Enjoy and be well,

DAILY PIVOT MAGIC TRADING JOURNAL - EXCERPT

******************************
Pivot Magic Trading
First rule:
"Any time you don't know what
is happening, get out!"
******************************

E-mini ES H2
Tuesday January 31, 2012

Overnight trading pumped Price Action outside and above the LT SW Channel Ceiling
(Daily, bottom chart, green channel lines). Morning session thus opens gap-up
above the R1 and heads south with a vengeance.

1 = A 123 tests the R1 Support-turned-Resistance. Bear DVS (pink arrow) lets us
enter aggressively below the MA. At the close of the giant red candle our position
is already in violation of Pivot Magic Trading Maximum Profit Giveback (MPG)rules.
Penetration of the High is not quite deep enough, so place a mental stop at
Giveback Level.

A = Large red candle through the Close. Per PMT stop rules, move the
profit-locking stop above the Close.

Even before it hits our stop, the next (white) candle completes a Reversal Signal
at the Close. We exit briskly. +/- 3 points

Volume is way down, so we don't even consider reversing into the selectively
permeable green channel line.

2 = Low-Volume 2-bar failed test of the green line.

B = Volume comes to life (pink arrow), and we enter below the Close on a giant red
candle. At the close of the large red candle our position is already in violation
of MPG rules. Mental stop at Giveback Level.

C = An S-trap gives us a start, but the Bears immediately continue the charge with
a large red candle. Normal PMT stop placement leaves the position in MPG violation.
Mental stop at Giveback Level.

D = The tail of a red inverted (Bull) Dragonfly spikes the Pivot and retracts.
That is a PMT Pivot Scalp Exit Signal. +/- 4.25 points

3 = A 123 Continuation "S" Signal at the Pivot.

E = Volume expands, and we are pulled in below the Pivot on a large red candle.
Our stop advances to Free Trade and a tik, just in time to get stopped out.
Arrrrgggghhhh!

Volume dies off and lunchtime sideways drift travels in the Pivot-Close channel
all the way to EOD close.

PERSPECTIVE
(Daily, bottom chart)
Tuesday taped a tiny Doji breather day candle.
Price Action continues to hover safely near the
Ceiling of the LT SW Channel (green channel lines).

BE PREPARED FOR ANYTHING, AND GUARD YOUR FUNDS!

REMEMBER: Trade the Tape, Not my Prognostics!

Asher
=] ;-)>

Tuesday's PMT Chart: