10-21-2013

Pre-Trade Notes:

1.  Focus on re-drawing correct trend lines until you have them correct.  Major and minor trend lines.
2.  Focus on recognizing if we are in a trend or in a range.
3.  In a trend price will break out of the trend line to the downside and then go up and create a newer high before going into a range.  Or price will create a lower high and then create the 2nd leg lower before going into a range..  The first leg is the lower high. Opposite is true for when in a down trend.
 
Post Trade Notes:

Started re-reading Mack's book again and it really does help.  I will read it once per week b/c it has helped me to remember and make clearer some issues I was struggling with regarding the trend line breaking and when to know that price is probably going the other direction.

Pretty decent day.  Only took one bad trade that missed getting a scalp by one tick.  It is a good lesson to learn b/c I did not give myself enough cushion for the scalp.  I thought I had b/c I was looking at the previous low but when price creates a higher low which signals a reversal then you cannot count on the previous swing low.  Good lesson to learn.

I like how I drew all of the trend lines (major and minor) and waiting for the rules about the break of the trend lines and then either a higher high/low or a lower high or a higher low before the reversal.  Reading that part in Mack's book really did help today.

The yellow circles are the trades I did not see until Mack's video review.  The violet circles are the trades I saw after the fact but missed when trading (in simulation).

The lines in black are from Mack's video review that I did not draw when trading.

Mack's Notes:

Rangy day today.  He closed up shop early b/c there wasn't much movement.

Find your channels, find your range highs and lows, stick with your 2nd entries and bounces off of S/R.

Trades:

1.  8:36 - 2nd entry short off of resistance level
2.   10:14 - 2nd entry long at the support area.  Price had broken out of the small trend channel to the upside then went down and created a new low that help signal the down trend was over.  It was also at a support area.
3.  2:00 - 2nd entry short off of support turned resistance level.  Price had broken out of the small down trend channel for the 1st time so was looking for price to go down and test the lows again at least for a scalp.  Price created a higher low and then went straight up.  I originally had the S/R line where I entered but after the bad trade I moved it down.  Looks like another bad trade is the result of not having the proper lines drawn.
4.  2:34 - A failed 2nd entry long developed 5 bars over so I was waiting for price to come back and fill me then go back up to the resistance level.  It did come back and fill me for a scalp but that is all I got.
5.  2:59 - Failed 2nd entry short off of the lower trend channel and the EMA.  Still was looking for price to hit the resistance level.  Got at least a scalp out of it.

Missed Trades:

1.   8:43 - He has it as a buy at the lower trend line but it isn't a 2nd entry and he was also looking for the 2nd leg of the measured move up.  I didn't see that on my charts but I see the area after the fact.
2.  8:59 - 2nd entry long and a failed 2nd entry short.  If I had noticed that this move is the 2nd leg of a 2 legged measured move then I would have taken this trade.  I thought it was the top of a range.
3.  9:15 - I have teh 2nd entry short at this point.  He has it at 9:30
4.  9:53 - Failed 2nd entry long.
5.  10:47 - Failed 2nd entry short at support area
6.  1:15 - Failed 2nd entry long off of the EMA.