10-16-2013

Pre-Trading Notes:

1.  Focus on NOT COUNTER TREND TRADING!!!!!!!!!!  Quit trying to find the bottoms and tops.
2.  Look for 2 legged moves to the trend line and look to get in them at a cluster area even if it is not a 2nd entry.  It is a valid trade if it is a 2 legged move back to the trend line even if it is not a 2nd entry.

Post-Trading Notes:

I am not going to include the Jigsaw snapshots of the whole picture.  Just the area where I entered. It is taking up too much room on the reviews.
Add the SH, SL, HH, HL indicator.

Really good day of trading.  The Jigsaw saved me on a trade at 10:25.  I normally would have taken this trade but I saw it was a low cluster area so I didn't take it.  Not sure if it is still a good reason but it seems to be working so far.  Below is the snapshot:

Near the end of the day I felt like I was guessing to I didn't take any trades.  I would have had a scalp at 1:56 from reading the Jigsaw and the weakness of cluster areas but it wasn't a Mack trade so I didn't take it.

I have got to figure out why most of the overnight session is not downloading b/c it is screwing my charts up when trying to find the trend lines!!!!!!!!!!!!!!!!!!!

Mack's Notes:

1.  Read his study guide over and over and over again.  There is too much info in there to pick it all up in only a couple of read through.  Use it like a study guide, not like a book you read and set aside.  Go through it as many times as you can, you will get at least one little nugget each time.  Even when you start understanding his system keep on reading it.
2.  Your trend usually starts with the 1st 2 swings from the overnight session.
3.  The idea is to always find the channel or range.  Don't worry about how you get there, make sure it is holding prices in that channel.

Trades:

1.  8:43 - 2nd entry long off of the EMA.  Not sure if that was the bottom of the trend line.  Was having a hard time finding it.  There were 2 dojis before the entry so I probably should have held off on taking this trade.

2.  9:43 - 2nd entry long off of the bottom trend line.  Great signal bar this time off the lower trend line.  Last time price hit the line it rocketed off and it did the same this time.  Picture perfect Mack PAT trade right here.  The only problem I had was when to take my profits on the 2nd contract!

3.  11:06 - Failed 2nd entry short off of the EMA and am looking for price to make a new high before going into a range since this is the first major break of the uptrend channel to the downside.  Had the 2nd entry at the end of the 2 legged measured move which also made it a double top from the previous high.

4.  1711.25 - 2nd entry long off of the support area.  I figured I had at least a scalp from the entry before I hit a major cluster area and fortunately I was correct.

Missed Trades:

1.  7:20 - Breakout from the support.
2.  8:33 - 2nd entry long off of the EMA.  It didn't show as a 2nd entry on my chart.
3.  9:15- Failed 2nd entry short.  My chart did not show this but his did.
4.  10:02 - Failed 2nd entry short
5.  12:22 - 2nd entry long off of support area.  I saw this but just missed getting in on it b/c I was being too greedy and had my entry almost a point lower.

10-15-2013

Pre-Trading Notes:

1.  Continue to adjust your trend lines and S/R areas until you get them correct during the trading session.
2.  Look for failed 2nd entries as legitimate entries but to also confirm 2nd entries.
3.  Use Mack's rules first and then use the volume profiling on the Jigsaw tool to see about entry levels.
4.  Focus on 2 legged moves back to the trend line areas.  These are not 2nd entries but are valid trades.

Post-Trading Notes:

Today was pretty nuts.  Recognized it was a trading range but just seemed hard to get a good feel for the day.  Took some good trades and some bad trades.  Good learning day.  In one losing trade I got impatient and didn't wait for price to hit the support area, got greedy and was afraid in missing out (trade #7).  Trade 2 was bad b/c price had gone too far above the channel to be considered a good short to look for a retest of the lows.  Price had also demolished the EMA so I should have recognized it was going up higher.

After reviewing Mack's video I was looking to go long in a downtrend a bunch today.  I have a bad habit of trying to find bottoms and it was obvious by the trades I took today.  HAVE TO FOCUS TO BREAK THIS HABIT!!!!!!!  Make this a priority!!!!!!!!!!!

Mack's Notes:

You have to know the rules when you trade or you will be a losing trader.
You have to find your signal bar and have a good bar, no dojis.

Trades:

1.  8:30 - 2nd entry short.  This was interesting.  The 2nd entry short signaled but the entry bar went low enough for a scalp.  I got in at a price cluster area when price came back.  There was also the EMA and the upper trend channel.  Price went against me but eventually came back for a nice win.  I am not sure if this is a good trade since the scalp was already successful on the initial 2nd entry???????  It was a two legged measured move back to the upper trend line and EMA.  On second look this was a very good trade and I could have gotten in at an even better price if I had waited for price to go below the next bar at 1701.00.

2.  8:54 - 2nd entry short.  Not a good entry b/c it was not on a clear trend channel or resistance area.  Price had just shot through the EMA with strength going up.

3.  8:58 - Failed 2nd entry short off of the EMA.  After my loss I looked at the Jigsaw and saw there wasn't any resistance up until 1703.00.  I could have gotten in a piont better if I had waited a 2nd and bought in at 1699.50 where the super heavy support was located for this section off the EMA.  Had my stop right before the next big order trading cluster at 1702.75.  Good exit, bad entry.

4.  9:33 - 2nd entry long formed 2 bars to the right but it was too far from the EMA or the lower trend line.  Price never got 1 point so I had my order at a heavy price cluster at 1702.75.  There wasn't anything to stop it if price broke over 1704.25 but it came back and took out my runner.

5.  9:45 - 2nd entry long but I didn't have a trend line or support area line in place.  Just a blind trade so I got out at BE.  Took the 2nd contract when price started struggling to push through the big cluster area at 1699.50.  Had a measured move down to the low but just took the sure profits.

6.  9:50 - Failed 2nd entry long off of the EMA.

7.  10:08 - 2nd entry long.  Thought it was off of support and a cluster area would hold it up.  Thought we were in a range and heading back to the top.  Obviously we are in a trend down.

8.  10:46 - Failed 2nd entry long off of the EMA and was looking for price to go to the lower end of the range.

9.  11:31 - 2nd entry long where I waited and got a better entry at the pink line that I thought was the bottom of a big trend up.

10.  12:37 - 2nd entry long off of a cluster support area and bottom of the range.  Should have gotten in 2-3 ticks better.

Missed Trades:

1.  8:39 - 2nd entry short off of the upper trend line and the EMA.  Was also the first major break of the original trend line.
2.  8:51 - 2nd entry long
3.  9:41 - 2nd entry short off of resistance area.
4.  10:11 - Short trap off of support area and a failed 2nd entry short if counting from the previous high.
5.  11:16 - 2nd entry short off of the upper trend line and the EMA.
6.  11:43 - 2nd entry short off of the upper trend line and the EMA.

10-14-2013

Pre-Trading Notes:

1.  Focus on drawing and re-drawing the trend lines.  You have to get a lot of bounces off of a line for it to be legit.
2.  Small bars going in one direction is a strong trend.
3.  When price breaks a trend channel to the downside when in an uptrend and then goes up to create a new high then the rule is we will get at least a correction that lasts an hour or more.  After that you can start a new trend in either direction.
4.  When price breaks a trend channel to the upside when in a downtrend and then goes down to create a new low then the rule is we will get at least a correction that lasts an hour or more.  After that you can start a new trend in either direction.

Post Trading Notes:

It looks like there is definitely some merit to using the Jigsaw tool in conjunction with Mack's 2nd entries.  It looks like a tool to help decipher when to get in on 2nd entries by seeing if there is a high cluster area of trades when a 2nd entry or failed 2nd entry signals.  If there isn't a high cluster area then it may be best to avoid the trade b/c it seems like a 2nd entry with a high cluster area on the Jigsaw tool means there is a very high probability for the trade to be successful.  Will have to start back testing.  Probably not using it correctly but it seems to give you a good entry price.

I am taking the snapshot and adding it to the trade lists to keep track of what the clusters look like with Mack's trades on the Jigsaw device.

Took two bad trades (#5&6) due to frustration after missing a big move.  They worked out but it was b/c of dumb luck.  Very bad habit to get into.

#3 focus point from pre-trading notes netted me the biggest trade of the day.

Need to focus on failed 2nd entries b/c not only are they good on their own but they help confirm 2nd entries.

Mack's Notes:

1.  He didn't like trade #3 b/c there were 3 overlapping bars which creates a trading range and it still had a ways to go before it reached the lower trend line.
2.  Trend lines are the key so keep messing with them until you get them correct.  They are the key to trading his system.  Once you have them correctly drawn then your trading will become much easier.  He likes to find where you get the most touches from the bar closes for either side of the trend line.
3.  The more reasons you can find to enter a trade then the greater the chance for success.
4.  Studying what you did each day is better than trading in SIM.  The best thing you can do is go back over your trades each day and study your work.  Eventually you will get it at some point b/c you will come to realize all of the traps and tricks that fool you, there are a bunch of them.  Figure out what you did wrong and correct it.  Figure out what you did right and build on it.

Trades:

1.  8:01 - 2nd entry long off of double bottom.  Cluster in Jigsaw at 1686.00.

2.  8:32 - This wasn't a valid Mack trade.  Was messing around with the Jigsaw at a high cluster area.  Although it just missed a big run up if I had gotten in a tick better.
3.  8:59 - 2nd entry long off of the EMA at a big cluster area.

4.  9:06 - Got in too early.  Should have waited for the 2nd entry at 9:25 off of the lower trend line then I could have gotten in at a better price and it was where a cluster area was located.  The trade worked out I just had to be in it longer than I should have.

5.  1:33 - This wasn't a good trade at all even though it worked out.  I was a bit frustrated after the big run up I missed out on so I tried to force in a 2nd entry long close to the lower trend line even though it wasn't.  It was also too far away from the EMA.  Horrible trade.
6.  1:42 - Still frustrated after missing the big run up so what is the worst trade you can possibly take???? A short in a huge uptrend!  Somehow I got the scalp.  This is just horrible trading these past 2 trades.
7.  1:56 - Failed 2nd entry short and the 2nd entry long signaled one bar over.  I could have gotten in a lot better and would have had an even bigger runner.  Price had broken out of the uptrend channel for the first time so I was looking for it to go back up and at least test the previous high. There was also a big cluster at 1701.50.  Got out near the previous high.  Good trade.

Missed Trades:

1.  9:22 - 2nd entry long off of support level or the bottom trend line.
2.  9:59 - 2 legged pullback to the support level of the trading range
3.  10:15 - 2nd entry long and a failed 2nd entry short.  This is a perfect trade to take 100% of the time!!!!!!!
4.  11:53 - 2nd entry long and a failed 2nd entry short.

10-10-2013

10-10-2013

Pre-Trading Notes:

Finally back after a long layoff.  Will do Mon-Thur most weeks if I am in town.  Back to the basics for a month or so until I can get myself back up to speed.

Will eventually spend the time learning the Jigsaw indicator and how to read it properly but right now it is back to the basics of Mack's style.

1.  Focus on identifying if we are in a trend or a range and which way the trend is going.

Post Trading Notes:

Real rusty but that is to be expected.  Still felt I recognized some good setups.  Missed a couple of trades.  Today had a good trending market so it wasn't too tough to recognize early that we were in a strong trend up.  Time to start doing these at least Mon - Thur.

My trend lines were a little off compared to Mack's correct lines.
Mack's lines are in black.

Mack's Notes:

1.  When you have small bars that keeping going in one direction then that is A STRONG TREND!
2.  RULE:  When you have a break in a channel and a new high the rule is we will get at least a correction that lasts an hour or more.  After that you can start a new trend either direction.
3.  You have to find the trend line that gets the most touches.  If you have a trend line that is not hit much then that is probably not a correct trend line.
4.  Your best setups will be around your trend lines and the EMA.

Trades:

1.  9:22 - 2nd entry long off of the lower trend line.  Had 2nd stop up around the upper trend line.
2.  10:25 - Failed 2nd entry short off of support area.
3.  11:17 - 2nd entry long off of the EMA.  Got out when it didn't go up right away.  Will get back in if a failed 2nd entry forms.
4.  11:57 - Turned out to be a good 2nd entry short signal where I went long.  I was looking for a failed 2nd entry short to go with the 2nd entry long.
5.  12:18 - Failed 2nd entry short off of the EMA.  Looking for price to go down to the lower trend channel.
6.  1:31 - 2nd entry long off of the bottom trend line.

Missed Trades:

1. 7:57 - Failed 2nd entry short.
2.  8:29 - 2nd entry long.  Breakout pullback long.
3.  8:53 - 2nd entry long off of the EMA.  Saw this in real time but missed getting in.
4.  10:01 - Failed 2nd entry long off of the EMA.

7-22-2013

Pre Trading Notes:

1.  Draw the smaller trend lines and look for the break of the small trend, then the 2 legs up to a new high or down to a new low which signals a change in direction.
2.  When price overshoots a trend channel or S/R area look for it to overshoot it the other way.3.  Keep looking for failed 2nd entries to confirm 2nd entry trades. 

Post Trading Notes:

Brutal day at the beginning.  I knew I was wrong on the first trade when the failed 2nd entry long formed and I looked up and could have gotten out with a 3 tick loss but I held on "hoping" price would go back up.  When you start hoping then you are on the wrong side of the trade.
For the 2nd loss I got in right when a 2nd entry long formed and I was taking a short.  I should have waited for a failed 2nd entry long to signal and when it didn't then I would not have taken this trade.  

Two bad trades but trades to learn from.
Once I figured out that price was in a range then I went 100%.  The problem was taking the two bad trades and not getting out when I knew I was wrong.

Mack's Notes:

Watch for the 2 legged moves in each direction.
A low volume day today, you have to be patient.
You have to learn to buy the lows and sell the highs.  It goes against your natural instinct to buy the lows and sell the highs.  

You will see it over and over again, 2 legged moves and then a change in price pattern.

Always ask yourself, "Is this a trap setting up?"
You are always better to miss a trade than to get trapped on the wrong side.  
Bad entry points are where there is a lot of congestion and dojis.
Always draw your short term trend lines b/c you usually will get a break and then a test or a new low/high.

Your 1st step in learning Mack's rules is to learn to spot the trades after the day is over.  You have to be able to spot all of the trades and explain why they are valid trades after the day is over. When you can do this then you work on spotting them in sim using the market replayer.
We enter on the corrections, not on the moves.

This takes time and experience to learn and to get better.  You won't be successful using Mack's rules right away.

Trades:

1.  7:36 - 2nd entry long.  Turned about to be a failed 2nd entry long.  Should have gotten out when the failed 2nd entry long formed for a small loss.
2.  9:02 - 2nd entry short.  Turned out to be a failed 2nd entry short.  A 2nd entry long formed right after it.  The 2nd of 2 bad trades I took today.
3.  9:38 - 2nd entry long and a failed 2nd entry off of the EMA and the lower trend channel.  I got out near the top of the measured move.  Obviously I wish I had held on until the top of the range.
4.  12:04 - Failed 2nd entry long and a 2nd entry short.  I was also looking for price to complete the 2nd leg of the measured move.
5.  1:57 - 2nd entry short.

Missed Trades:

1.  7:50 - Failed 2nd entry long.
2.  8:31 - Double top pullback to the upper channel.
3.  8:42 - 2nd entry short off of the upper trend channel.
4.  9:04 - 2nd entry long off of the EMA and support level.  There was also a failed 2nd entry short.

7-19-2013

Pre Trading Notes:

1.  Draw the smaller trend lines and look for the break of the small trend, then the 2 legs up to a new high or down to a new low which signals a change in direction.
2.  When price overshoots a trend channel or S/R area look for it to overshoot it the other way.
3.  Keep looking for failed 2nd entries to confirm 2nd entry trades.

Post Trading Notes:

Good trading today.  Once I found the trend line then I knew to only go long.  Today I did well of having a trend within a range but only trading on the support areas.  I just felt like I did a good job of finding the range and measuring it up for the 2nd move.  Then finding the trend within the range but still making sure to only trade going long once I found it.

I am still thinking about just scalping everything.  Even today I would have been up if I had scalped every trade rather than try to have runners.  I think having runners is good for now but it looks like when I go live that I can make more money by scalping every contract rather than worrying about having runners.

Draw your short term trend lines.  You are not doing this and you need to.

Mack's Notes:

Slow day where you had to be patient.  Even he made some mistakes today and got shook out of some trades.

At 16:00 in the review video he goes over how to enter into the trades.  Good review on signal bars and how to enter.
At 18:00 in the review video he goes over traps and what they look like.

Trades:

1.  8:27 - 2nd entry long off of the support level.  I knew price wasn't in a down ward trend b/c none of the lines matched up so I figured price was probably in a range and was looking for a 2nd entry long b/c wherever it triggered was probably a support level.

2.  8:33 - 2nd entry short off of resistance level.  Was also a failed 2nd entry long if counting from the SL.

3.  9:08 - 2nd entry long and a failed 2nd entry short off of the EMA.  Price had made a couple of dojis and was up against resistance so I dropped a limit order in off the EMA which made for an easy scalp.  Was looking for a measured range move up which was where my 2nd lot was located.

4.  9:53 - 2nd entry long off of the EMA.  Should have waited for the failed 2nd entry short to confirm the entry and could have gotten in 2-3 ticks better.  Should have gotten in better since there were dojis and congestion.

5.  11:05 - 2nd entry long off of the lower trend line.  There were two dojis so I got in 2 ticks better which made for an easy scalp.

6.  12:01 - Failed 2nd entry short and a 2nd entry long off of the lower trend line and the resistance turned support area.  My 2nd lot was near the upper trend line and it hit.

Missed Trades:

1.  8:41 - 2nd entry long and a 2 legged move at the bottom of the trend line.
2.  9:31 - 2nd entry long off of the lower trend line.  There was also a short trap.
3.  2:33 - 2nd entry long and a failed 2nd entry short off of the EMA.

7-18-2013

Pre Trading Notes:

1.  Continue to look for 2nd entries and failed 2nd entries complimenting each other.
2.  Keep drawing all of your trend lines and S/R lines.
3.  If it is a good setup bouncing off of the trend lines, S/R lines or the EMA then take the trade.  Do not hesitate if you recognize and know it is a good trade.
4.  Plan in advance what setup you are looking for depending on what price is doing.  Always try to be prepared and have the setup in your mind for what you are looking for.

Post Trading Notes:

I made the mistake again of trying to force a trend into a range and trade off the trend when price is bouncing off of one of the ends of the support or resistance.  You can have a trend in a range but when price bounces off of the S/R area then trade off of that and not the range.  Only until price breaks out of the range and shows it is in a trend, then that is when you switch over and trade the trend lanes.

Mack's Notes:

An overshoot of a channel that is the end of a 2 legged move will usually mean it will go to the other side and there will be an overshoot on the other side as well.
You want to get in cheap and use a real small stop when you can.  You do not want to get stopped out for your max 2 point stop every time.  When there is congestion wait for the setup to signal an entry then drop a limit order back in congestion.

Your stop always have to go above the signal bar at minimum.
Always make sure you have room to at least scalp out of a trade.
Make sure you draw the short term trend lines b/c they really do help.

Mack's lines are in black.

Trades:

1.  8:38 - 2nd entry long off of the EMA and what would be the lower trend line.  It also was a failed 2nd entry short that triggered a couple of bars before.  I didn't have the green lines drawn correctly at first, other wise I would have gotten out at 1682 rather than 1681.50.

2.  9:07 - 2nd entry long and a failed 2nd entry short off of the lower trend line.  Had the 2nd lot close to the top of the upper trend line.

3.  11:34 - 2nd entry short and a failed 2nd entry long off of the EMA.  My 2nd lot was a tick up from the end of the measured range move.

4.  12:52 - Tried to force a trend into a range.  This is a problem I have at the moment.  I knew it was a range and had it labeled correctly but I stuck some trend lines on there and tried to trade off of them.  You can have trends in ranges but when it hits one end of the range then that trend is more than likely over.

5.  1:35 - Failed 2nd entry short off of the EMA.  Was looking for price to go up and retest the highs for the 2nd lot.

6.  2:45 - 2nd entry long off of the support.


Missed Trades:

1.  11:06 - 2nd entry long which is also a 2 legged move back to the support area.
2.  12:19 - 2nd entry short off of the EMA and also was a failed 2nd entry long that never went 4 ticks.