4-26-2013

My Notes:

2 legged measured moves will be pretty clear.  They will not be very hard to spot.  If you are having trouble spotting one then it is probably still the first leg of a 2 legged measured move that just happens to have a couple of really small retracements in it.

Wait for 2nd entries off of the lows when going long and off of the highs when going short when you are looking at getting in to the 2nd leg of a 2 legged measured move.  I find that when I go off the highs for longs I am getting in too early and could have gotten in better waiting for a 2nd entry off the lows for the 2nd leg of a measured move up.  It also gives my 2nd lot a better chance of catching the runner.

Today was a good old fashioned range day.  The 2 legged measured moves still proved to be the way to trade for me even though all of my runners ended up getting stopped out.  I made one bad trade.  I think I was not realizing how much of a range day it was and was looking for the 2nd leg of the measured move to be completed rather than realizing it was a fakeout breakout.

Still, much better job.  Slowly getting better.  In the past I would have been down today but I ended up +1.50 points.  Take out that bad trade and I am up +5.00.

After watching Mack's video I think I was off on counting the big measured move.  I labeled the "correct" measured moves in black that Mack said were the correct ones.

Mack's Notes:

A trap is a setup that fools people or surprises them in taking the wrong direction in their trade.
When prices are all over the EMA then that is how you know it is a trading range day.
Draw all of your short term trend lines.
Usually when price breaks the short term trend line in an uptrend it will go up and create a new high before selling off.

Draw your short term trend lines.


My Trades:

1.  2nd entry long and was looking for the 2nd leg to the measured move long.  I dropped my order in 3 ticks below where the original entry was b/c my stop would have been right on the low of the swing.  I got a scalp out of this before price came down and took out my BE stop on the 2nd lot.  Very good read on this trade!  Not sure if I could do anything about price coming and taking my BE stop out before it shot up.  Great job on recognizing this 2 legged move.  The only thing I could have done is take the entry I have circled b/c that is the 2nd entry off of the lows and then drop my entry order in 3 ticks from the entry.  That would have been the only way for my runner to work.

2.  2nd entry short off of the 45 EMA looking for the 2nd leg down of a big 2 legged measured move.  I got in 3 ticks better than where the entry signaled for an easy scalp.

3.  2nd entry short off of the 45EMA after a 2 legged measured move up had been completed and am still looking for the big 2 legged measured move down to complete.

4.  2nd entry short off of the high after a 2 legged measured move up had been completed.  I got in by getting my limit order filled 3 ticks better than where the entry bar signaled b/c the bars were too big for my stop w/any wiggle room.  I got my scalp filled but price just doesn't want to make it down to the 2nd leg of the big measured move.

5.  2nd entry short.  Was looking for the end of the measured move to get filled.

6.  2nd entry long looking for the 2nd leg of the measured move.  I actually got in one tick better than the signal bar but it cost me a runner.....lol.  If I had gotten in where the signal was then I probably wouldn't have had my scalp filled.  Then price would have retraced and I still would have been in the trade before moving back up to the previous resistance.  Good job in spotting the setup though.

Missed Trades:

1.  (9:11) 2nd entry short and you are looking for price to go back and test the lows.

2.  (10:37) Failed 2nd entry long and am looking for the 2nd measured move to get filled.  Very had to get in b/c the entry bar never really came back and was too hard to get in.

3.  (11:51) 2nd entry long off of the swing high.  There were a bunch of doji's and overlapping bars.  I was in the short trade which was a bad trade so I wasn't looking for the long.  I think it's a good trade long b/c it looks like the 2nd measured leg has been close enough to being filled and price is eating up all the short orders and is getting ready to go long.