3-12-2013

Today's video has great information!  Great video to review!

I tried focusing on only taking trades that had a 2 legged pullback or was a 2nd entry off of the EMA, trend line or support/resistance.  Did an okay job but definitely needs more improvement.

You always want to enter along strong support or resistance areas.  When you are in a range you can enter on both sides of support and resistance.  DO NOT ENTER IN THE MIDDLE!  When you are in a trend or channel you want to enter along the support or resistance in the direction of the trend.  So if you are in a downtrend you want to enter at the top of the channel.  If you are in an uptrend you want to enter at the bottom of the channel.

There is always going to be a trade so be patient and identify your trends, channels, support and resistance areas because that is how you are going to make your money.

1.  2nd entry long.  It wasn't off support, the EMA or a trend line so I'm not to pleased with this trade even though it worked out.  It was also too close to the resistance.  Bad trade.

2.  Entry off of the trend line.  It became a 2nd entry off of the trend line and EMA so it is fine but I don't think I would have taken it had I had drawn the range arrow correctly the first time b/c you can see it matches the down move exactly.  Usually price consolidates after that happens or reverses.  Mack did not like this setup.  He said there wasn't a big enough bounce up to make this a good short.

3.  2nd entry short off of support turned resistance.  Price previously had made a double top against support turned resistance and came back to give me a 2nd entry short off of the resistance level.  Good trade.

Missed Trades:

1.  2nd entry short with a double top off of overnight highs.  Beautiful setup and this is a trade I take.  I was thinking it was going to be a pullback long and had it marked as such but turned out to either be a failed breakout above the previous range or it was just hitting the overnight high resistance level with a 2nd entry short.  Beautiful setup.

2.  Failed 2nd entry long with the pullback off the EMA and trend line.  Beautiful setup.  I saw this at the time but didn't take it b/c I didn't think there was enough room to scalp out to the support level.  I should have taken this because of the beautiful setup and also whenever there is a failed breakout higher price usually makes a new low past the support level before either coming back up or continuing to make new lows.  A failed breakout one way usually leads to a new low/high the other way.

3.  2nd entry short

4.  Failed 2nd entry long with a long trap that closed on its lows.