4-10-2013

My Notes:

Really focusing on 2 legged measured moves so I plan on drawing a lot of blue arrows today.  Not just to take for trades but as moves with 2 legs to signal when a run could be over and for targets.

Wow, a day where the market goes up all day long and I end up losing a couple of points on the day.  If anyone is reading this then use this blog as how NOT to trade.  Goodness gracious this is frustrating.  Have to keep grinding away.  Take a break and come back to it.

The correct lower trend line is the black line that I drew after watching Mack's video.

Mack's Notes:

Inexperienced traders are better off waiting for 2nd entries.

On a day like today you should only exit your runner after you overshoot the upper trend line.

My Trades:

1.  2nd entry short and 2 legged move at a resistance level.  Obviously this wasn't a good trade and I read it wrong.

2.  This isn't a trade I take.  There were 2 measured moves indicating this was the top before a retracement.  I would have ended up getting a scalp out of it.

3.  2nd entry long and 2 legged pullback to the EMA.  Price had also broken out of the narrow uptrend channel for the 1st time so the rule is that when price breaks out of the channel for the first time it will usually retrace for a bit and then go back up to test or create a new high before turning back down.  I remember from my butt kicking I took yesterday about drawing the narrow trend channels.  That is how and why I took this trade.  I just left my 2nd contract at 2 points since that was a new high even though it was 3 ticks away from the upper trend channel.

4.  2nd entry long off of the EMA.  Price had broken out of the narrow trend channel for the 1st time so the rule is that price will usually go on to test or create a new high before retracing or going into a range.  Pretty much the same as trade #3.

5.  2nd entry long off of EMA and off of purple trend line.  Price had borken out of the brown trend line but was now in the purple trend line.  I could have taken 2 points profit but since price had been going up all day I was going to let it ride.

6.  I knew I should have waited until price moved down to the lower blue trend line channel but I thought it was going to bounce off the EMA and move up after the hour consolidation like it had done all day.


Missed Trades:

1.  Failed 2nd entry short