6-7-2013

Pre Trading Notes:

1.  DRAW THE TREND LINES!  EVERY SINGLE ONE NO MATTER HOW SMALL!  This will help you fine the bigger trends.
2.  Watch for price to break the channel and then come back and retest the high in an uptrend or low in a downtrend before reversing.
3.  Ranges turn into trends and trends into ranges.
4.  LOOK AT THE BIGGER PICTURE IN YOUR OTHER CHART!
5.  Have a defined exit for your 2nd contract for every trade I get in.  Do not "Let It Ride."  If you get out way to early don't worry about it.  You'll get better at determining a high probability spot for your 2nd lot of contracts.


Post Trading Notes:

Decent day today.  Had one losing trade but it might have been because I had the trend line drawn incorrectly which is one of my biggest weaknesses at the moment.
After the losing trade I kind of packed it in b/c I was unsure about what the market was doing.  Also if I was trading live I would not be trading past noon on a Friday.
Did a good job of drawing all of the trend lines.
Good job drawing the S/R levels.
Keep an eye when price moves from an area very quickly b/c a lot of the time it will come back and retest the area.  The example from the chart is the big price move around 7:34 and then the retest at around 8:45 before price went up for good.

Good lesson today on this:  " Don't be eager to counter trend trade.  If you do not have a trend line that is valid then do not be trading in the opposite direction.  Just b/c you have a break of the trend line and a retest doesn't mean you should start counter trend trading.  Wait for a confirmed trend before you take trades in the opposite direction or you need a trap."

Mack's lines are in black.

Mack's Notes:

A lot of the time when price moves away from an area very quickly it will come back and retest the area to give everyone else a chance to get in.

Patterns that work earlier in the day tend to repeat themselves later in the day.

Once you have a trend line break in a major trend doesn't mean you will have a reversal right away.  It means you will at least have a correction.  You need to wait for a retest or a new high if in an uptrend or a low in a down trend.  Then you need to get a confirmed trend in the other direction before you consider trading the other way or you need a trap.

Don't be eager to counter trend trade.  If you do not have a trend line that is valid then do not be trading in the opposite direction.  Just b/c you have a break of the trend line and a retest doesn't mean you should start counter trend trading.  Wait for a confirmed trend before you take trades in the opposite direction or you need a trap.

My Trades:

1.  @8:13 - 2nd entry long off of the EMA counting from the lows.  Price had broken out of the channel so I was looking for it to at least retest the high.  Got out when price went one tick higher than the previous high of the day for my 2nd contract.

2.  @8:30 - 2nd entry short.  Price had broken out of the brown channel and had retested the high so I was looking for a short.  Also on the narrow yellow channel I was looking for price to break out to the lower side.  The EMA stopped it initially from going lower.  Had my 2nd contract at 1626 if needed.

3.  @8:33 - Failed 2nd entry long.  Had 2nd contract at 1626 if needed.

4.  @9:35 - 2nd entry long and failed 2nd entry short.  Was looking for price to reach the top of the 2nd leg of the measured move.  Price also had broken out of the trend channel so I was looking for it to create a new high where the measured move is located.

5.  @ 10:54 - 2nd entry long off of lower trend channel.  It looked like a beautiful setup.  I need to watch the review video to see why it did not work.


Missed Trades:

1.  @7:35 - 2nd entry long off of the EMA.
2.  @7:55 - 2nd entry long off of the EMA
3.  @8:40 - 2nd entry short off of the EMA.
4.  @8:52 - 2nd entry long off of the lower trend line. 
5.  @8:58 - Failed 2nd entry short.
6.  @9:06 - 2nd entry long counting from the previous swing low.
7.  @10:19 - 2nd entry long counting from the swing high and a failed 2nd entry short off of the EMA.
8.  @11:00 - Failed 2nd entry long.  This is the trade I went long and was obviously confused.  I will email Mack about this trade.