4-5-2013

My Notes:

Nothing really to talk about.  Lots of trades today.  A good learning day b/c it had a big move, a range and then a reversal. 


Mack's Notes:

When you have one big leg down you are probably going to have a second so use the measured move.
You are better off sticking to the highs or lows when you are looking to trade.  Trade at the extremes.


My Trades:

1.  2 legged pullback and 2nd entry short with the first break of the trend line.  It was also hitting a bar that needed to be filled but that is just a bonus and not something that influences if I need to take a trade.  I was hesitant b/c I thought this could turn into a failed 2nd entry but I was hoping to at least get a scalp before price went higher.  I felt price was at minimum was going to go into a range.  I got out 2 ticks above where most of the lows were in the support area.

2.   I had been waiting for price to tick up b/c I thought where the short trade was that I would at least get a scalp before a failed 2nd entry formed.  Then I could go long.  I didn't get a tick higher until price came and matched the previous low and then took off.  The reason why I felt very strongly that price was at least going into a range was b/c we had 3 pushes lower and it looked like price was at least going into a range before deciding what to do.  This also created a double bottom.  It wasn't a 2nd entry or 2 legged move so maybe I just got lucky, I am not sure yet.

3.  2nd entry long off of support area.  I got in one bar later than I should have b/c I missed the original entry bar but luckily the next bar came back and got me in.  I had my 2nd contract 2 ticks below the previous high in the resistance area.

4.  2nd entry short and a 2 legged moved.  It became a failed 2nd entry short.

5.  2 legged move and 2nd entry long off of support area.

6.  2nd entry long off of support area.  I got the 2nd entry by counting from the previous low.

7.  2 legged move off the resistance area.  Obviously it was not a good trade.

8.  2nd entry long and a 2 legged move.  Obviously not a good trade.

9.  2nd entry long and 2 legged move off of support area.  Had my 2nd contract 2 ticks below the high in the resistance area but price never mae it there.

10.  This is what happens when you draw incorrect trend lines.  You get a losing trade.  It was a 2nd entry long off of the lower incorrectly drawn trend channel b/c I drew it too steep.  It should have been off of the tail of the one at 12:06.  When I drew the correct brown trend line off the tail at 12:06 then that next trade would have been a winner.  Incorrectly drawn trend lines leads to losers.

11.  This wasn't a valid trade.  The valid trade would have been at 2:28 where I have it circled with a yellow arrow.  That was a 2nd entry long and 2 legged pullback off of the trend line.  I should have had my stop two ticks below the upper channel but I was running the replayer too fast and got hit at 2 point profit.  I would have had a 3.50 profit on the 2nd contract if I had done it correctly and not run the replayer too fast.


Missed Trades:

1.  2nd entry short and 2 legged pullback.  When you have a one leg big move down then you have to expect a 2nd move of around the same size.

2.  Failed 2nd entry long off of the EMA and the upper trend channel.

3.  2nd entry short.  Took it too early.  Should have waited b/c this was the trade to take.

4.  2nd entry long off of the low.   I saw this and should have taken it.  Great short trap signal bar.  Not sure why I didn't take it.

5.  Saw this and should have taken it.  Great short trap bar on the entry bar.  2 legged move and 2nd entry long off of the lower trend channel.  The trend channel was not drawn yet which it should have been.  I thought it was a fake out break out and was looking for the failed 2nd entry long to go short.

6.  2 legged move to the lower trend channel with a short trap.  Also had a double bottom.

7.  This is where I should have gone long instead of a couple bars over to the left.