1-16-2013

My Notes:

Still focusing on the 2 legged moves is my number one priority.  Also focusing on when to switch from range to trend and trend to range mode.  The red boxes are demand areas and the green boxes are supply zones.  Price seems to come back and fill these up before moving in the major direction it came from.


Mack's Notes:

The best trades are always the 2 legged pulback to the extremes (trend channel lines and support/resistance areas).

Eventually all trends will break their trend lines and then go back and retest it's highs/lows before reversing.


My Trades:

1.  2 legged move and 2nd entry short off of resistance level.

2.  2 legged pullback to the lower trend channel.  I used the measured move and what I thought would be the next resistance area for my 2nd contract exit target.  It also happened to be close ot the upper trend line which worked out well.

3.  Got caught in a long trap.  Thought it was a 2 legged pullback and 2nd entry long at the EMA.  Was looking to hit up near the 2nd measured move before price might go into a range.

4.  Same reason as last trade except this time price was off the lower trend channel.  Price came and stopped me out by one tick then reversed and ran up to the 2nd measured move like I thought it would.  I should have waited until price filled the big green bar I had labeled.  If I had then it would have been a winning trade.  That is why I mark these b/c price tends to come and fill them before moving back in it's original direction it came from.

5.  2nd entry short or a failed 2nd entry long.  I should have waited until the true 2nd entry short formed since price ticked up and made a new high but I still ended up getting in a the same price I would have.  I still should have waited for the 2nd entry short to develop b/c that is the correct discipline to practice.  I thought that price would turn lower since the 2nd measured move had been hit and price was stalling from going up.  Price came and took my 2nd contract out at BE by one tick before turning down and would have hit my target at 2 points.

Missed Trades:

1.  2nd entry long and failed 2nd entry short at the lower trend channel.  Double bottom with a short trap.  I thought price was still in a range so I wasn't looking for this trade.  He drew his trend channel from previous 3 highs and then drug it to the bottom to get the channel and then got the trade.

2.  This is the area that got me good today.  The entry bar was a good short trap bar.  It wasn't a 2nd entry, just pure price action reading.  Where I got caught in my 2nd trade Mack said he could see why people got beat there.

3.  2 legged pullback and 2nd entry long off of the EMA.  I was looking for a short here but this would have been good for a scalp since it had a very nice signal bar off the EMA.