Pre Trading Notes:
1. Continuing to draw trend lines on every higher high or lower low.
2. Remembering that ranges turn into trends and trends turn into ranges.
3. When price breaks the channel (in this example price is in an uptrend) then it will usually go and retest the high or make a new high before it goes into a range or sells off. The opposite way for price when it is in a down trend.
Post Trading Notes:
I am wondering if Andrew's Pitchfork would be useful for drawing trend lines?
An okay day. I definitely made a couple of horrid trades but did notice a little bit of improvement. I think I got confused by not looking at the big picture and did not focus on drawing the trend lines closely enough. If I cut out 3 of those horrid trades I would have had a great day! Review, learn and improve.
I am going to create a 2nd chart that is condensed down to show me the big picture.
Any black lines you see are lines drawn after I am done trading and are from Mack's review.
After watching the review video I realized this is one of the best videos Mack has done. He tells about the pattern I mentioned at the top of this entry and enforces why drawing all of the trend channels (big and small) are the key to being successful following his rules.
Mack's Notes:
You have to draw your little channels and your little trends. This will help you find the bigger channels. Finding the lines makes it a whole lot easier. The short term channels are a lot easier to find than the bigger trends.
IMPORTANT - In a downtrend channel price will break the channel up and then a move to a new low. In an uptrend channel price will break the channel down and then move to a new high. Stay with the channel until you get a break and a retest. You don't always get a new high but you will get close to at least a double top.
THE KEY IS FINDING THE LINES!
Nothing is 100% but if you follow Mack's rules you will stay on the right side of the trade about 90% of the time.
He continually adjusts his lines b/c price needs to bouncing off of both sides of it to be considered a valid trend line.
My Trades:
1. 2nd entry long. Price had broken out of the channel so I was looking for it to go up and make a new high or at least retest the previous high. Price was also coming off a support level. Lastly a 2 legged measured move had been completed at the bottom of the move.
2. 2nd entry long off of the EMA and what I thought was the lower trend channel. Obviously it was not.
3. Price had broken out of the channel and I was looking for it to go and retest the high. Came close to retesting before turning down. Also the 2 legged measured move had completed at the bottom.
4. 2nd entry short off of support turned resistance. I got in one tick too low and it caused me to get stopped out early.
5. This is in regards to trade #4. A failed 2nd entry long did develop at around 9:45 but that isn't the reason why I took this trade. In trade #4 I got in a tick bad and it caused me to get stopped out. It just felt to me that this was going to be the 2nd leg of the move down so I got back in. I had my 2nd contract 2-3 ticks above the end of the 2nd leg of the measured move and it hit.
6. 2nd entry short off of the upper trend channel.
7. 2nd entry long. I got caught trying to pick a bottom.
8. 2nd entry short. Was looking for the 2nd leg to the 2 legged move. I didn't trade at the EMA or the trend line so this is a perfect example of not following the plan and having a losing trade.
9. 2nd entry short off of upper trend channel and EMA. 2nd contract was 2-3 ticks higher than the low of the 2nd leg but I ended up moving it up another 2 ticks b/c I got shaken out and wanted to take the 2+ point profit.
10. Failed 2nd entry short and 2nd entry long. Was also looking for the 2nd leg to the move.
11. 2nd entry short counting from the top but it was HORRIBLE entry. I should have dropped my order in at least 3 ticks above where the entry signaled.
12. 2nd entry short counting from the low.
13. I thought this was a 2nd entry when I took it but it is not. The good news it worked b/c I was looking for the 2nd leg to the 2 legged move and I had my 2nd contract 1 tick above the low.
Missed Trades:
1. 2nd entry short after price had broken the channel and then created a new high. Price also had reached the top of the two legged move.
2. Failed 2nd entry long.
3. 2nd entry long off of support level counting from the high. You were looking for price to go and at least retest the previous high since it just broke out of the bottom of the channel.
4. Failed 2nd entry long. Notice how price broke out of the channel, then went and created a new high and finally sold off. THIS IS A PATTERN TO REMEMBER B/C IT HAPPENS OVER AND OVER AGAIN!
5. This isn't a 2nd entry but see how again price broke the channel, created a new high and then continued the trend lower.
6. 2nd entry short after price broke the channel and had just retested close to the high.
7. Failed 2nd entry short after price broke the channel higher then came back and came close to retesting the swing low.
No comments:
Post a Comment