7-10-2013

Pre Trading Notes:

1.  Focus on failed 2nd entries
2.  Keep looking for patterns you recognize.  They should be like those 'Magic Eye' posters where it looks all jumbled until you relax and then you can see the picture clearly.
3.  Don't get lazy drawing your trend lines.  It is better to draw too many than not enough.  Dirty up those charts!

Post Trading Notes:

It takes much more concentration but when you look for the failed 2nd entries then you get a much better picture of where price is headed and which side of the market you should be trading.  If you are looking for a 2nd entry long and a failed 2nd entry short develops then you are good to go with your long when the signal hits.  They are also great when you are expecting price to reach a level and you are looking for anyway to get into the move.  This is especially true in a downtrend within a range.

I really need to go back to Forex Factory and look at when Bernanke is speaking or whatever is going on b/c obviously something big was released at 1:00pm.  No wonder the market was super slow before then.


Mack's Notes:

FOMC day.  Low volume until the announcement.  It is best to either call it a day before the FOMC news comes out or wait until things slow down after the news before you trade around the FOMC.
On choppy days he recommends not using runners b/c you will just get stopped out.
You have to sit tight and read the price action correctly on these slow trading days.  You have to be patient, read the price action correctly and know that you are on the right side of the trade.

Trades:

1.  8:47 - 2nd entry long off of the lower trend channel.
2.  9:26 - Failed 2nd entry long off of the EMA.  I am looking for price to go down to the lows.
3.  9:45 - Failed 2nd entry long off of the EMA.  Price had broken out of the channel for the 1st time and I was looking for price to go retest the lows.
4.  10:13 - 2nd entry long and what I thought was a 2nd entry short.  Price had broken out of the channel and had made a new low so I was looking for price to go back up.  When huge sell orders starting coming in I got out for a small loss.
5.  10:35 - Once I saw the short trap and the new high with the bar after I got back in for a scalp.
6.  11:00 - Was looking for a 2nd entry long and for price to make another leg up to the high.  Turned out to be a failed 2nd entry long.
7.  11:13 - 2nd entry long off of the support area. 
8.  12:36 - Failed 2nd entry short counting from either the SL or the SH off the EMA.  Another scalp.
9.  1:46 - Failed 2nd entry long off of the EMA and the S/R line.  Was also off the top of the trend line.  Had my 2nd lot down by the lows and support area.


Missed Trades:

1.  Failed 2nd entry short counting from the SH.  Was also a 2nd entry long counting from the SH.  The 2nd entry long also formed two bars to the left if counting from the SL.
2. 2nd entry long off of the lower trend line.