3-25-2013

My Notes:

I spoke with Stoplight and he has really helped me out with trend line drawing.  I am still horrible at it but he made it seem clearer and showed me how he draws his lines.  Thanks bro!

I got out of the trade the bar before the move to the 13 point downside.  Then I draw a new channel since I was trying to go off of the violet lines and the first trade I take is a loser.  This is after price bounced beautifully off the EMA in the brown channel trend.  That was a rough patch.

When I found the correct trend channel LOOK WHAT HAPPENED!  Goodness gracious it is amazing how much easier trading is when you can draw the correct trend channels.  YOU HAVE TO DRAW THE CORRECT TREND LINES!!!!!!!

I didn't know what to do at around 13:56 so I didn't do anything.  I thought price would go back down after making a lower high to test the lows of the day before turning back up which it did.  The problem was that my rule of taking the first of the 2nd entry that breaks the trend channel was in play.  I was leaning towards taking the short and even had it set until I called it off.  Turns out my read was correct which I'm happy with even though I didn't take the trade.

Mack's Notes:

When you are on both sides of the EMA then that means  you are in a trading range.
Price usually moves in 2's which is why we always look for a 2 legged move.
You have to draw your lines.
You want to have a good signal bar for your trades.

My Trades:

1.  2nd entry pullback and 2 legged move down.  This was the first break out of what I thought a trend line.  More important was that I was waiting for price to fill the gap at around 1554.50 which it did and proceeded to create a nice 2nd entry long for an easy scalp.

2.  2nd entry short off of the top of the trend channel.  This is a setup I take 100% of the time.  When the entry bar ended in a doji then that is never a good sign.  After 8 bars and price had only come a tick within my entry I decided to get out b/c price is not going lower like it should with this sort of entry at the upper trend line area.  (Of course I get out right when price takes off to the downside...lol.....not sure if I'm that bad, that unlucky or a combination of both....haha)

3.  After I missed the 13 point move to the downside I draw the brown trend line.  Then I take a 2nd entry short off the EMA and close to the trend line and of course it is a loser.  haha.  Geez Louise.  Obviously the brown trend channel is not correct.

4.  2nd entry short off of upper trend channel.  Okay, now I think I have the correct overall trend line drawn but we shall see.

5.  Failed 2nd entry long off of EMA and close to upper trend channel.  I missed the original entry at 1546 with the time being 11:16am so I put a limit entry one tick worse at 1545.75and luckily got filled.  I kept my trailing stop 2 ticks above the swing high.

6.  2nd entry short off of upper trend channel.  Good for a scalp.

7.  2nd entry long and two legged pullback to the EMA and trend line.  Beautiful trade I take 100% of the time.  The bread and butter of my trades.

Missed Trades:

1.  2nd entry long with a failed break lower.  I called this trade at the time and should have taken it.  Good recognition, just take the trade next time.  This was actually in a range but I thought it was another 2nd entry long in a downtrend going back to the upside which it did as well.

2.  Failed 2nd entry long.  This is right after I got after my trade.  Mack said he didn't like this trade area anyways for a short trade.  He labeled it an advanced trade.  What happened was this area trapped a ton of people on the long side.  He said this area had too much congestion.

3.  2nd entry short and 2 legged move off the EMA.  I was still going off the violet channel lines so I thought price was too close to the lower trend channel to take the trade.  I'm not sure how he had drawn his trend line already?  I think he did it off that first lower low.  If I had drawn the correct trend line then I would have taken this trade.