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 Posted:
Thu Sep 29, 2005 3:52 pm Post subject:
Pivot Point Day Trading - Doji Breather Days |
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BS"D
RULES AND CAVEATS
Pivot Magic Trading Course
First rule:
"...Any time you don't know what is happening, get out!"
http://www.TradingThingys.com
MARKET IN REVIEW - LITE
Wednesday (28 September 2005)
_____________________
Morning session opens gap-up at Tuesday's High. After several Bullish
attempts at the High/R1, the tape displays a series of lower highs
(lavender line). Any one of these would have been a possible entry,
but none proved.
1 = Finally a lower high that proves. Could also call it a Multiple
top. Price Window to the Pivot is sufficient per our criterion.
A = Large red candle/Failed test of MA. Place stop-loss at "free
trade" (aggressive and satisfyingly risk-conservative!)
B = Gap followed by a large red candle into the "green fog" Ambush
Zone.
Per our rules, move profit-locking stop above the high of the candle.
We're in the money!
2 = 123 "S" through the Close. Nice second chance to enter the ongoing
move or add more contracts. A bit dangerous to enter here
mid-lunchtime.
Be sure to wait till Price Action exits the "fog".
C = Second red candle below the Pivot. Move profit-locking stop above
the Pivot. Note that we chose the less aggressive option to avoid false
stop-out during lunchtime drift.
D = 1:30 Action Time Zone. Large red candle/failed test of MA. Move
profit-locking stop above the high of the candle.
E = Clearly an exhaustion gap. As we approach the S1, fearing a Pivot
retest, call this a large red candle and move profit-locking stop above
the high of the candle.
3 = DT Double-bottom/2-bar just within range of S1. Exit briskly.
5.75 points
No reversing entry. Once the signal completes, the Price Window to the
Pivot is too small even for a decently safe scalp.
4 = 123 Continuation "S" at the Pivot. Second chance entry point as
the
Volume booms (middle chart). Entry on the large white candle, as it
exits
beyond the "green fog", of course. Stop-loss under the Close for a
low-risk entry.
F = Giant white candle/DVS (middle chart). Sign of desperation
stretching
for the many-times-proven High/R1 area. Move profit-locking stop under
low
of the candle and keep your eyes open!
G = DVS Reversal (Desperation Volume Spike, middle chart). Expecting a
more conclusive stab at the PL, even experienced traders might have
held on
(even though if you do the math the R:R for holding is not positive,
and the
correct choice was to go flat immediately).
The white Bear Dragonfly kick-off candle however, as soon as it dipped
lower
than the close of the red candle (back two), screamed EXIT NOW!!!
+/-1.5 points. Out of a run of 10 points. PU!
PERSPECTIVE
(Daily, bottom chart)
The massive Bull charge that we've been expecting
still hasn't materialized. Plenty of Doji breather
days hovering above the 50% Retracement level of the
July-August long term trend (red). Note however
that the series of Doji days has edged up (green
trend channel lines) and is now pressing against the
August-September long term 50% Retracement level
(lavender). Looks real good for a Bull foray Thursday
and Friday!
REMEMBER: Trade the Tape, Not my Prognostics!
Asher
=] ;-)>
Pivot Magic Trading Course
http://www.TradingThingys.com
Wednesday's PMT chart:
Http://www.TradingThingys.com/PMTJ/PivotMagic092805.gif
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