4-3-2013

My Notes:

Focusing on looking for 2 legged pullbacks and then looking for 2nd entries.  The 2nd entries will be clear after you can spot the 2 legged pullbacks.

Today I decided that when I am in a range I am going to do this:  I will keep my runner if I'm taking the trade in the direction price went into the range and I will scalp all of my contracts if I'm taking a trade in the opposite direction that price came into the range.  For example, if price is in an uptrend and then goes into a range then on my long trades I will keep my runner.  If I take a short trade at resistance then I will scalp my 2nd contract out at one point or near the support level.  I am keeping my runner due to the bias of price movement and how it entered the range area.

Take trades in the direction of the trend.  Do not take counter trend trades.

Very good job drawing your S/R levels and your trend lines.  You have made great improvements in this area and it is showing in your trades.  I am getting more wins and avoiding more losses since I have the correct trend lines drawn.



Mack's Notes:

Do not counter trend trade.
If you stick to your rules, trade the same way and get out of your trades at your predetermined areas then you will win more often then not.  It is when you start picking and choosing when you are going to get in or get out of the trade is when you start to lose.

When price creates a trading formation earlier in the day then it probably will do the same formation later that day.

Your best entries and big moves come off your trend channel lines.

If you stay with the trend then you can still have a bad entry but your trade still has a great chance of being a winner.

My Trades:

1.  2 legged move and 2nd entry long to the support level.  Took both contracts out at one point since the long was the opposite way price entered into the range.

2.  2 legged move with a double top and 2nd entry short off of resistance.  (On Mack's charts it was off the top of his channel)  This is the trade where I did what I talked about in my notes.  Since the direction of the trend was down when it went into the range, I took my first scalp at one point and then was either going to get stopped out at BE or let my 2nd one ride.  The trade before I took both contracts out at one point since that was the opposite direction of how price entered into the range.  Not sure how good this is but it worked out well today.  I just like focusing on the bias of the direction price could go since the bias was down.  For my 2nd contract I was either going to get one point (if it came back that far) or I was going to get very close to the measured move.  Maybe I should have gotten out when price first hit the lower channel?  I think I should have done that b/c there were a couple of other trades I missed and I don't like how I went for all or nothing with the 2nd lot.

3.  2 legged move and 2nd entry short off of the EMA.  Notice how the entry bar filled the gap bar's body perfectly and then came back up before turning back down 3 bars later.

4.  2 legged move and 2nd entry short off of the green EMA.  Notice again how price came down and filled the big green bar to the tick before bouncing back up.  This was another reason I was confident in the trade b/c it seems that price comes to fill those bars up before deciding what to do next.

5.  2nd entry short off of the upper trend channel.  Obviously it was a bad trade.  I thought price would at least come down to fill the big green bar before moving up again.  DAMN IT!!!! If I had waited for the 2nd leg then it would have been an awesome trade!!!!  I jumped the gun and look what happened.  Price came to the tick and stopped me out before going back down.  ALWAYS HAVE A NOTICEABLE 2ND LEG!!!!!!!!!

Missed Trades:

1.  2 legged move and 2nd entry short.  This would have been the only trade you would have needed to take.  I saw this but I did not take it since it was close to the support area.

2.  2nd entry short and a 2 legged move off of the EMA.  Good for a scalp.

3.  2nd entry short off of the upper trend channel.

4.  2 legged pullback and 2nd entry short.  This is where I came in too early and got stopped out right at my stop before the big move down.