6-27-2013

Pre Trading Notes:

1.  Keep focusing on working on getting the bigger trend lines established then work down from there.
2.  Have patience and wait for the setups that you recognize.  Do not worry about missing out on a trade that you are confused about but "think" it might be a good setup.  Know that it is a good setup and execute the trade.  Confusion = Guessing.
3.  Your 2nd lot exit will be at a pre determined spot.  You only get out if it breaks out of the channel and creates a new high/low before hitting your target.
4.  Look for 2 legged moves.
5.  Every stop loss is 2 points with at least a 2 tick cushion from the SH or SL.
6.  Use stop entries with a good signal bar.  Drop limit entries when there is a bad signal bar or the entry bar is too big for your stop loss.


Post Trading Notes:

Today was one of the first days where I felt confident the whole day.  Even though it looks like I may have taken one bad trade (even though it worked out) I still like the reasoning and I had a plan b/c I saw a setup and stuck to the rules.  There are a ton of lines on the chart but I'm drawing them as I go so it only looks confusing after I am done trading.  This was another range day that you did extremely well on and these for me have been the toughest to learn.  I am still a ways away from going live but this small step in learning the technical side of trading is encouraging today.

Mack's Notes:

Today was a range day.
Draw your trend lines and follow them until you get a break.
The only way to trade low volume choppy days is to draw your trend lines and trade of of them.
We don't trade off of 2 legged measured moves only.  We wait until 2nd entries when those patterns setup.  We are price action traders, not pattern traders.

Reversals - Look for double tops and double bottoms.  Lower lows and higher highs.  Lower highs and higher lows.  Failed breaks lower or higher.


Trades:

1.  @9:10 - 2nd entry long off of the lower trend channel.  Dropped a limit order in a tick better so I would have a full 2 point stop loss with a 2 tick cushion below the swing low.  Got out on my 2nd contract when price broke the yellow line and made a double top.

2.   @9:45 - 2nd entry long off of the EMA and 1st break of the trend line.  Ended up being a long trap.

3.  @9:50 - This might have been the 2nd entry long with a great signal bar off of a support area.  Good for a scalp.

4.  @10:08 - 2nd entry short after a 2 legged move to the resistance area.  I had both contracts out at a scalp since that is where support was located.

5.  @10:47 - 2nd entry long and there was also a failed 2nd entry short other wise I probably would not have taken this trade.  Exited both at the S/R level.

6.  @11:23 - 2nd entry short off of the EMA and the support turned resistance.  2nd lot was at the lower trend line.

7.  @12:01 - 2nd entry long off of the EMA and a failed 2nd entry short.  It looked like when price was coming down that it broke the dotted yellow trend channel line and then went down to make a new low.  This seems to be a signal to a reversal pattern.  Also the end of a two legged measured move was perfectly hit.  I dropped a limit order where the 2nd entry long signaled and was filled.  My 2nd lot was one tick below the resistance level and at the end of the 2 legged measured move.

8.  @12:28 - 2nd entry long and a failed 2nd entry short off of the EMA.  I was looking for price to go up to the next resistance level but just got a scalp.


Missed Trades:

1.  @10:05 - 2nd entry long
2.  @11:02 - 2nd leg of a measured move down.
3.  @12:58 - 2nd entry short off of the upper main trend channel