1-7-2013

My Notes:

My mortal enemy continues to win against me......drawing correct trend lines.  The blue trend lines were not correct.  The black dotted lines were the correct ones Mack drew.  I thought today was a range day when it was a trend day.  I need to remember that when price breaks out of the trend line for the first time then it will probably come back to retest or create a new high/low before it goes into a range or reverses trend.

Good video to review!

Mack's Notes:

When price breaks the trend channel (in a downtrend) for the first time then it will usually come back and test or make a new low before reversing it's trend into a range or an uptrend.
Draw your trend line from the overnight highs or lows and then copy and paste it to the other side where it fits the best to create your first trend line.

My Trades:

1.  2nd entry short against resistance.  Good trade if that really was resistance but it was in a trend and not resistance.  Still was able to get a scalp.

2.  Not a valid trade.  I thought it was a 2nd entry short but it was not b/c it made a new high.  I also used a doji as a signal bar which you never do.  This was just a horrendous trade all around.  I thought price was bouncing off resistance which it was not.  I had it labeled incorrectly since I thought it was in a range and not a trend.  At least I was able to limit my losses by dropping an order up closer to the resistance area.

Missed Trades:

1.  2nd entry short with first break of the (correct) trend channel.  This is a trade I take 100% of the time.

2.  Failed 2nd entry long.