Look for two legged pullbacks to the trend line. Add this one as trade to take as well as 2nd entries.
I notice that while I am trading and I see the market moving either up or down the urge inside me wants to take a trade just to get a trade in and be part of the action. My emotions are telling me to not miss the action so look for anyway to take a trade to get in on it.
I need to get better at knowing when to take profits and knowing when to let it ride. On one of my trades I could have taken a 2 point profit but I held on when it hit resistance thinking it was going to blast on through and go to the range target. It looks like there is at least one to two failed breakouts a lot of the time while in a range before price resumes the trend from the direction it came from.
Mack says that when a trend breaks the trend line but goes up (or down) and makes a new high outside of the trend line then you will at least get a correction that lasts at least an hour or so. If you are not doing so well, stay on the simulator. Don't worry about how many trades you take. Trade as long as you can and take as many trades as you can that you think meet Mack's criteria. If you win or lose don't let it shake you. At the end of the day go back and study and figure out what you did right and wrong. Concentrate and try to do better the next day. If you do this everyday, eventually you will start to get better and it will start to become 2nd nature to you. You'll get to the point where you can glance at a chart and spot all of the entries real easy. Eventually you'll be able to spot them in real time. It takes a lot of hard work and a lot of study time. It doesn't come easy for anyone right away but it works and if you can stick to the rules and learn it then you'll eventually be successful. This takes time and effort, there are no short cuts when reading the price action.
If prices are generally above the EMA then we are in an uptrend. If prices are generally below the EMA then we are in a downtrend. If prices are on both sides then we are in a range.
When you have a pullback to the trend line and the EMA then you have a very strong setup.
Trade 1: 2nd entry long off of the lower trend channel.
Trade 2: 2nd entry long off of support. I think I could have gotten in better if I had put my entry down closer to support after I saw the 2nd entry. It could have shot up and I could have missed the move but I think the wiser play would have been to put my entry down at support after the 2nd entry formed so then I would have had a closer stop loss and a greater profit target.
Trade 3: 2nd entry Long off of support. Notice that it was coming off of a failed breakout higher. It seems every time price comes back from a failed breakout higher that it goes lower than the previous support before it turns around. I think the reason why is there are a lot of trapped longs who are getting out of the failed breakout.
Trade 4: Great signal bar and failed breakout lower. I was looking for this after price had just come down from a failed breakout high. Price previously had moved up to this range area so the emphasis was that price would eventually move back up. I saw this yesterday where there was a failed breakout long that came down and created a failed breakout short before it turned up again.
Trade 5: Failed 2nd entry short. Not sure about this trade b/c I don't think it is a valid trade and I don't think I would have stayed in for the two point stop loss w/o moving it up even though it was below the low of the move.
Missed Trades:
1. 2nd entry long off the lower trend channel and EMA. This is a trade that I saw but did not take b/c I was looking for a signal bar. This is a trade you have to take every time b/c price was bouncing off of the EMA and lower trend channel while making matching lows.
2. 2nd entry long off of the EMA and the new trend channel that I had not yet drawn. It also made matching lows which is another good signal.
3. Double bottom against support.
4. Failed 2nd entry long
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