1-8-2013

My Notes:

I didn't draw the purple dotted trend lines.  I missed that.  I was expecting price to resume the downtrend after it broke the channel.  I also did not draw the correct brown dotted lines that Mack drew which were the correct lines of the day.  I HAVE TO USE THE FIRST SWING HIGH AND LOW TO DRAW THE CORRECT TREND LINES!  I am not using the first swing high and low and it is causing me to draw incorrect trend lines.  The good news is that I ended up positive.
I should have realized it was a trend day when the price made a higher low it its 2nd swing and then sold off.

Mack's Notes:

He found the correct trend line by drawing it off the 2 swing high's where the 2nd was a lower high.  He drug this down to the 1st swing low and viola, there is the correct overall trend line.

Most of your high probablity entries will be when price creates a 2nd entry or a 2 legged pullback to your trend lines, EMA or support/resistance area.  (I need to add the EMA as a support/resistance area to my trades)


My Trades:

1.  2nd entry long and 2 legged pullback.  Price looked like it was in a range and a nice 2 legged pullback with a 2nd entry long formed.  Good trade.  I wonder if there is a way to get in better after the 2nd entry forms?  I think I could have dropped an order 2-3 ticks lower and still would have gotten filled.  The entry bar was almost 2 points which is too big for me to get in with.

2.  2nd entry long and 2 legged pullback off of support.  I got out with a .75 tick loss after my entry  bar formed a doji.  This wasn't a valid trade.

3.  2nd entry short and a 2 legged pullback to the upper trend line.  I got out with my 2nd contract when two double bottom dojis formed.

4.  2nd entry short and 2 legged pullback with a double top off of support turned resistance area.  I drew the yellow dashed line where I thought resistance was.  It looks like it was really where the black dotted line is located which I recognized after the fact.

Missed Trades:

1.  2nd entry short off or resistance.  I tried to drop an order at 1455 but price took off and never came back to it.  That is the debate when at support/resistance, drop an order at a better fill after the 2nd entry signals or just take when it signals at that price?

2.  2nd entry short off the EMA.  You do not get too many of these in a trending market.  I should pay better attention b/c I was just waiting for price to go back up to the upper trend line.  This would have been a trade I take 100% of the time.