4-12-2013

My Notes:

From Ray's advice about major trend reversals (MTR) I am not going to wait 30 minutes after price breaks out of a channel in an extreme way before I look to take a trade in the original direction where price came from.  There will be trades I take when price breaks out of the channel for the 1st time in a two legged move but I'm talking about where price just goes straight down out of a channel and is doing a good sized correction or it has broken out of the channel for the 2nd plus time.

Still focusing on those two legged moves and am going to draw a ton of measured move arrows to help identify these.  I am also going to draw the yellow dotted trend lines to show the trend line breaks.

Today was the first day since I have been doing these reviews that I didn't feel totally lost.  There were still moments where I was confused but I did not take any trades when I was not sure what was going on.  I think that by drawing all of the measured moves and minor yellow lines that shows when price breaks the move really helps me out.  I still took some trades which Mack didn't recommend but luckily I at least got a scalp out of almost all of them.  The one bad trade I took was the same one Mack took but he was able to scalp out b/c he got in 2 ticks better than I did.

Mack's Notes:

Gaps don't always get filled but you have to keep them in mind.

Price action works on any chart at any time level.

The only time you want to look at yesterdays price action is where there is a big breakout that had never come back and was filled.

You can learn to see everything on one chart, you do not need multiple charts.

Any time you do not know what is going on you are guessing.  When you are guessing you are gambling and we don't want to gamble as traders because we want to know that the odds are on our side when we trade.  You just need to sit tight and be patient when you are not sure what is going on.


My Trades:

1.  2 legged move up adn 2nd entry short.  Price also made a very nice signal bar that extended past the measured move.

2.  2nd entry short off of the EMA and I thought price would make a push down to the lows where the measured move was but it came back and stopped out my 2nd contract at BE.

3.  2 legged move to the top of the trend channel.  I didn't take the initial 2nd entry b/c I was hoping to get in closer to the top of the measured move which was originally at 1579.75.  I got in one tick better but I could have gotten in another tick or two better.  It also was an hour when price went into the channel from the downtrend.  I was able to get a scalp but turns out I got lucky.

4.  Beginning of the 2nd leg off of the EMA.  I got greedy with my 2nd contract.  I orignally was going to take it at the top of the measured move and where the top of the trend line was.  I thought price was going to go back up to the high of the day so I didn't exit there and got stopped out for a 1 tick profit.  That's what being greedy will get you.

5.  Entry off the trend line and EMA.  I got out for a 2 tick loss after price came down and made a 2nd entry short.  I felt it was making a 2nd leg down.

6.  2nd entry short.  This is where I reversed my trade from long to short and had my 2nd contract 1 tick above the measured move.  Turned out to be a great call.

Missed Trades:

1.  2nd entry long off of EMA and lower trend line.

2.  2nd leg entry off of the trend line and EMA.

3.  Hitting off resistance and the end of a measured move.

4.  2nd entry short off of the EMA.

5.  Failed 2nd entry short.  2nd leg entry off of the lower trend line.

6.  2nd entry long off of the EMA and the lower trend line.

7.  This was the end of a measured 2 leg move down that had taken an hour for a correction.  It also had a good signal bar and I was looking for price to make 2 legs up to test the previous high or make a new high.