10-30-2013

Pre-Trade Notes:

1.  Keep drawing all of the small trend channels and S/R levels.
2.  The market usually moves in 2's.
3.  If price has been above the EMA for over an hour then it is in an uptrend.  DO NOT TAKE SHORT TRADES!
4.  Wait for price to come back to your trend lines and S/R areas.  Do not chase.  Be patient.  IF you are unsure then do not trade.  You  have to have a clear vision of why you are getting in a trade and know what it looks like, where you will exit and what you will do if the trade does not develop.

Post Trade Notes:

1.  I got frozen up bad for the first part of the day.  When I do not know where the S/R area is but I am in a trend I am unsure if to take a trade or wait b/c it is close to what could be a S/R area.  Price was in a down trend in a good channel but I thought it might have been less than a scalp from a support area so I didn't take the trade.  Which overrides which??????????

Is the channel greater than the potential S/R area or is the potential S/R area greater than the channel?  After the fact it is easy to tell but in the moment I struggle greatly.

2.  For all missed trades I am going to explain them on my charts.  The violet colored circles are ones that I saw.  The yellow circles are ones I missed and got from Mack's review.

3.  I think I am making up support/resistance areas.  It is messing me up.
4.  The good news is I was patient and didn't take trades where I was unsure which was very frustrating and I felt that frustration building up.

Mack's Notes:

1.  We are not just pattern traders.  We have to take every thing in context and make our decision off of that.
2.  You can get a 3 legged move.  Generally the 2nd leg will be the longest and the 1st and 3rd leg will be around the same length.
3.  Even during news price action is still valid.
4.  Draw your short term trend lines b/c they are valid and they help you stay on the right side.

Trades:

1.    12:05 - 2nd entry short off of upper trend line.  Got out with 2nd contract at a volume cluster area.  Should have stayed in until the lower trend line.