4-15-2013

My Notes:

Today I am focusing on taking trades that are the 2nd part of a measured move.  I would prefer the pull back to be a 2 legged move but if it is in a strong trend then I'll take a 1st entry as long as it is off the EMA.  I am going to try to stay away when price is in a range unless it gives me a clear two legged move to the support/resistance area.

If I do not understand what is going on then I don't attempt to trade.  Confusion = No trading!

When a measured move does not come close to filling then does that mean the direction in that market is weak and I should look to trade the other direction?

Mack's Notes:

What normally happens after news is that the market will come and fill the big move it made.

The market moves in 2s.
The 2 legged moves do not have to be exact measured moves.

After a 2 legged move to a new high/low you'll usually get a correction or a range before price decides what to do.

Mack doesn't buy in a downtrending market unless price starts making higher highs and higher lows.

On down trending days look for reasons to go short:  Pullbacks to trend line, pullback to EMA, double tops.

On up trending days you are looking for reasons to buy.

On range days you are looking to buy the lows and sell the highs.

My Trades:

1.  2 legged pullback and 2nd entry long.  Could also have been the 2nd leg to a measured move but it wasn't.  Only got a scalp out of it.  The 2 legged move down was also a perfect measured move so that made me even more confident in taking this trade.

2.  2 legged pullback at the upper trend line where price had reached the top of it's measured move.  Just didn't work out.

3.  I'm not sure if it was a failed 2nd entry long or a 2nd entry short but it just looked like price wasn't going to be able to reach the measured move up at resistance so I went short and put my 2nd contract 2 ticks above the previous low of the day since I didn't know if the trend line was still in play and this looks like a range day.

4.  Thought it was a 2nd entry off the EMA and was looking for the 2nd leg of the measured move down.

5.  Entry off the EMA in a very strong down trending market.  I was willing to take a losing trade if it was going to be a two legged pullback since this was just a 1st entry off of the EMA b/c I did not want to miss the 2nd measured move of the leg down.  Usually when price makes a big move like that it will move in 2s.  My 2nd lot exit was about one point above the end of the measured move.  Maybe I should have moved it 2 ticks more to maximize the move?  Good trade.  (Mack said it was a breakout pullback short)

5.  Two legged pullback, 2nd entry and close to the end of the measured move.

6.  2nd entry long counting from the low and price had bounced off of the yellow trend line and gone up.  Usually it will go back up again.

7.  Entry off the EMA looking for the 2nd measured move down.  Price never reached the lower level so my 2nd contract was stopped out at .75.

Missed Trades:

1.  2nd entry short (counting off the highs) and it was the 2nd leg of a measured move.

2.  Breakout pullback short.

3.  2nd leg of the measured move and 2nd entry short.  Real hard to get in b/c you would have had to put your limit entry halfway up the big bearish bar.  Very hard to get filled but a valid trade.

4.  2nd entry long b/c price had made two legs to a new low previously and this was the beginning of the 2nd leg of a measured move.

5.  Failed 2nd entry short.  This is where I went short so I go completely fooled here.  Was also off support and you had to figure we would go and test the previous highs.

6.  Breakout pullback short.Also looked like a 2nd entry short.