4-22-2013

My Notes:

The 2 legged measured move has been my bread and butter since my breakthrough a couple of days ago so lets keep on hammering it home.

If I don't understand and/or do not have an expectation about where price is heading then do not trade.  This is in reference to not being able to identify the correct leg in a 2 legged move.

I got too complacent after I made 2 good trades from the start.  I have to utilize and trust the 2 legged measured moves b/c they work.  I noticed after I was  up 6.5 points I tightened up and ignored trades I should have taken b/c I didn't want to give any of it back even though I am in sim. This is something I need to change b/c I need to be taking all of the trades I can that I think are good trades so I can note the ones that work and correct my thinking to the ones that do not.

Decent job drawing your trend lines.

The good news is that I was able to correctly label all of the good trades I missed after watching Mack's video review.  This is basically from just focusing on the 2 legged measured moves.

Mack's Notes:

When you break a trend line in an uptrend price will usually will make 2 legs to a new high before deciding what to do.  When you break a trend line in a down trend price will usually make 2 legs to a new low before deciding what to do.

You are not trading based off the EMA.  You are trading based on what price is doing in relation to where it is to the EMA.

If you ever start to pray for a trade to turn around then GET OUT IMMEDIATELY!  If you feel that urge to hang on and HOPE then get out immediately.


My Trades:

1.  2 legged measured move down and a bigger two legged measured move down.  Was also a 2nd entry and am looking for the 2nd leg to the move up from early this morning.  Got a scalp.  Not sure now if price is going to go any higher.  We might be in a range or will go back and test the lows.  Not much strength to the upside even if this 2nd leg long that is forming at 8:31 that took out my BE stop reaches it's full potential.

2.  This was the end of a 2 legged measured move up and was also a 2nd entry off of the top of the trend channel.  I got the trend channel by connecting the two swing lows and it fit perfectly up top. Price looks like it is making lower lows and lower highs so I thing we might be in a downtrend channel.  My 2nd lot is at the bottom of the trend channel.

Missed Trades:

1.  2nd entry short from the previous high and the beginning of a 2nd measured leg move.

2.  Interesting trade.  It wasn't a 2 legged measured move up that had ended or even a 2nd entry.  It was a first entry off of the EMA but you are looking for the 2nd leg down and since it is off the EMA it is probably a wise move to take this.  Only b/c you are looking for the 2nd leg of the measured move down.

3.  2nd entry short off of the EMA.

4.  2nd entry short off of the top of the trend channel.  I was hesitant b/c I was looking for a 2nd leg of the measured move up (which eventually did happen).  This was good enough for a scalp.

5.  2nd entry long off of the lows with the support of the EMA.  Mack said it also had a short trap. This was the 2nd leg I was looking for of the measured move.  It was also off of the bottom of the trend channel but I had not drawn that yet.

6.  2nd entry long off of the EMA.  I was looking for a 2nd measured move down before going long.  If I had seen or known that this was the 2nd leg of a measured move then obviously I would have taken it.  Hard trade to take but if I had drawn that measured move then I would have taken it.