4-8-2013

My Notes:

GREAT VIDEO TO WATCH FOR 2 LEGGED MOVES!

Draw your trend lines off of established pivot points.  Do not draw them off of places where you hope it will be a pivot point just so you can take a trade.  I've done this many times and finally it clicked that this is a losing trade almost every single time.  I am referencing trade #3 b/c that is exactly what I did.  Now that I realize this I hope to eliminate this error.  Today's lesson is to not take the losers and to only take the winners.  I notice my frustration rising b/c I get confused.  When I get confused I take bad trades.   When I take bad trades in my confusion then I get frustrated b/c as soon as the trade doesn't work out I can see clearly that it is b/c I did something incorrectly b/c I was confused.  This could be drawing an incorrect trend line or trading like I'm in a trend when I'm really in a range.

Need to draw my support and resistance lines.  Today was a range day and I treated it like a trend day.

I did not draw the yellow S/R lines.

Mack's Notes:

You don't want to enter close to a support/resistance area unless you have room to scalp out.  That is when he'll drop an order back in the bar after he gets a 2nd entry signal if there is not enough room to scalp out where the entry signaled.  If he gets filled then this gives him enough room to scalp out.

The market usually moves in twos.  You always look for two legged moves which signal 2nd entries since the market usually moves in twos.  You can do the

When you are trending you count off of the highs if up and off of the lows if down.  In a range you can count off of the lows if wanting to go long and off of the highs if going short.

You can find a two legged move in almost every move.

Count off the lows on the way down and off the highs on the way up.

If you are looking for a reversal then look for the failed 2nd entries.

My Trades:

1.  2nd entry long after price broke the trend channel for the first time.  It might not have been a trend channel.  I was fortunate to get a scalp out of it.

2.  2 legged pullback and 2nd entry short off the EMA.  Beautiful trade.

3.  2nd entry long off of the EMA and my incorrectly drawn trend line.  I missed the good trade earlierand took the losing trade.  If I had drawn the trend line off of the two tops then that would have been the correct trend line and I would not have taken this trade.  The correct trend line is the light green line.  I had this originally drawn but went with the brown line which is obviously incorrect.

4.  Misclick.

Missed Trades:

1.  2 legged pullback and 2nd entry short at the EMA.  I saw this and should have taken it.  Not sure why I didn't.  I think it was b/c I was in the long which I shouldn't have taken.

2.  2nd entry long.  Mack said it was too risky until you get back up into the range to go long.

3.  Failed 2nd entry short.

4.  Was off my false green trend line which was an okay trend line since I correctly drew it off the pivot highs.  It was actually a failed breakout short that reversed and made some people a ton of money.  I was right that the market was going higher but wrong b/c I drew an incorrect trend line and didn't even draw the S/R lines which would have helped me get in.  I did see this setup and tried to get in by dropping an order back but obviously that was the incorrect play.