Well today I had no idea what the price action was doing, even less than usual which is hard to do as I do not know very much. The ray of light is that I stuck to my rules and only took trades off of the channel lines in the direction of the trend or off of support/resistance areas. This led to a whopping 1 trade that was a scratch trade. Let's see what Mack says about today. I'm sure he'll be able to pick out 8 easy trade setups that I could not see. I guess it's good I didn't force any trades. At noon I sped the replayer up b/c price wasn't doing anything. Another positive was that I drew all the correct trend lines. This is the first time I have seen one of the trades that was a great setup turn out to be a loser if I had let it run. That's pretty good IMO. All the rest of my losing trades were b/c they were not good price action trades so that is encouraging that Mack's rules really do work. Nothing is 100% but if I learn and follow his rules then I'll be very successful.
Mack's notes:
Today after the trend line break the market didn't go back and test the lows. That is good to know b/c that is where I took my trade that I scratched out of and my thinking was the same about the trend line break. If you follow the price action rules you will be right more often then you will be wrong.
My Trades:
1. 2nd entry short off of resistance with great signal bar. Price had broken out of the trend channel and when that happens it usually goes back the direction it came from. Also I thought this might be a resistance level since price had bounced off their 2X recently and would go back to the bottom of the range. After price made two doji's in a row I got out for a scratch trade. Good trade. This is the first valid trade I have taken that I have seen be a loser if I had stayed in it the whole time. That is really encouraging b/c I know nothing is 100% but his rules seem to give you winning trades much much much more than losing trades if they are valid. The rest of my losing trades I have taken up to this point have not been valid trades following Mack's rules.
Missed Trades:
1. 2nd entry short. I though price was in a range and was thinking it was still going to go up to where I drew the resistance line from the overnight high. Mack's line is in black and was the correct resistance line b/c the surge above it is just that, a surge. Of course I didn't have the blue channel in place b/c it was way to early for that.
2. 2nd entry, 2 legged pullback short with a great signal bar off of the support turned resistance area. This is a beautiful setup that I saw at the time but did not take it b/c I expected prices to go up closer to the upper blue trend channel. As I get better I'll take this trade but it's fine for now since I was waiting for price to go a little further to the upper trend channel.
3. He has this highlighted as a long trade on his charts but his sound went off during the review so I'm not sure the exact reasoning for this trade. I do know earlier he said he switched over from going to short to long but not sure of the reasoning behind it.
4. 2nd entry long after the first break of the channel. I called this trade but didn't take it when I should have if I was following my rules of taking the first trade that is a 2 legged pullback or a 2nd entry after price breaks the channel for the first time. The market had me confused so even though I saw the trade I did not take it when I should have.
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