4-18-2013

My Notes:

Still focusing big time on the 2 legged measured moves.

From 7 - 8:15 I had no idea what was going on so I hung tight.  I was expecting price to make a measured move up but the high it created was really weird and once the 2 legged measured move down was obliterated then I knew that price wasn't making a 2nd measured move up.  I thought price might be in a range but when price made that beautiful 2 legged perfectly measured move up to the 45 EMA and was a 2nd entry short, I had to take it.  Especially since I expected price to make a 2nd measured move leg down which it did!  This is why these 2 legged measured moves are amazing!

I got sloppy after about 9:30 when I started pressing too hard for measured moves and trades.  The good news is that the 2 trades that were losers is that they eventually went where I thought they would go.  I was too early and not patient. That is good to know that my expectation was correct but I was just too early.  Have to be more patient.  I am afraid of missing a winning trade.

Mack's lines are in the dotted black lines.  They make more sense since when I was trying to draw the blue trend lines the upper line would not fit.  That is a good sign that you need to use the other side's trend line.

Mack's Notes:

Stay with the rules and with the system.  You have to trust it b/c it works.

If you are struggling keep with it b/c eventually you will get it.

My Trades:

1.  2 legged pullback, 2nd entry off of 45 EMA and 2nd leg of the measured move.  I used the measured move for my 2nd lot exit.  When it got within 2 points of the lows I didn't want to give a bunch up so I had my exit 2 ticks above the previous bar's high.  Since I was doing this as my trailing stop with over 6 points for my runner I moved my profit target one tick above the measured move and it worked out beautifully.

2.  Failed 2nd entry long off of the 45 EMA.  Had enough of a 2nd measured move down leg to at least get the scalp.  I wanted in b/c since the market was so weak I was looking for another move down past the lows.

3.  2nd entry long off of the EMA.  It also had a funky measured move down that just about reached it's lows but didn't.  I wanted in on this trade b/c of the expectation of it being the 2nd leg of the measured move (which it turned out to be).  My 2nd lot was 3 ticks below where I took the other short for a big move down.  It was about a point or a little bit over from the measured move but I figured this spot is fine for a 4+ point gain on the 2nd lot.

4.  Was looking for the 2nd leg of a measured move down.  Obviously I was off and did not recognize the situation correctly.

5.  2nd entry short off of the high and looking for the 2nd leg of the measured move down.  Price came out and took out my 2nd lot before reaching the end of the measured move.

6.  2nd entry long.  Price had gone wayyy past the 2 legged measured move and was at least a point away from the EMA so I expected price to bounce back up.  The problem here is that I do not know where to get out with my 2nd contract since there isn't a measured move?????  I guess I'll just use a trailing stop 2 ticks below the swing low.  (Nevermind, price came back and took out my BE stop w/one bar)

7.  I thought it was failed 2nd entry short but I had even marked it as being a good 2nd entry short so this is a trade I should have just avoided since there wasn't any measured moves.  This confused me and I took the wrong side.  This is a good trade to stay away from.

Missed Trades:

1.  2 legged measured move that had completed and overshot the trend line and the move.  The signal was the 2nd entry short.  It was also off the 45EMA that had been the resistance earlier.  I saw this and should have taken it.  It would have been good for a scalp.

2.  2nd entry long.  This is the trade he took live.  It was good for a scalp.

3.  2nd entry short off of the 45 EMA after a completed measured move.  It would have been good for a scalp.

4.  2nd entry long off of the low looking for the 2nd leg to the measured move.  Price had already overshot the big measured move down so I was looking for a pop up.

5.  2nd entry short and 2 legged move off of the 21 EMA looking for the 2nd leg to the measured move.  This would have been another great trade to take but I was tired and was running the replayer at 500 just to close out the day.  My 2nd lot probably would have only gotten a point or two since I would have been looking for price to go to the end of the 2nd measured move which it never came close to but it did go 5 points in the direction.