The Master Trader Method looks for compelling price patterns with alignment on Multiple Time Frames (MTF) for all trading and investing ideas.
These are the Concepts that form the Strategy underlying Master Trader Technical Strategies (MTS).
Then we trade stocks or options to match our directional bias and give trade recommendations to subscribers of our Swing and Options Advisory Letter and the Weekly Options Trader.
Then we trade stocks or options to match our directional bias.
The Weekly Options Trader focuses solely on selling options and credit spreads expiring in 10 days or less around compelling MTS price patterns to generate weekly income.
In selling credit spreads around compelling turning points, we “get paid” for calling a short-term top or bottom.
Below is a daily chart of Tesla, Inc. (TSLA)
For one month now, TSLA has been in a trading range. The red line is the 200-MA, which is still rising and an institutional long-term bullish bias.
TSLA plunged in March to $540 (not shown), so the May retest and reversal shown is a bullish retest of the prior March Major Support area.
Notice that the range is narrowing between the declining 50-MA and the rising 200-MA. The MAs are a visual representation of contracting volatility.
This contraction suggests expansion in volatility is coming soon.
TSLA is making higher lows within the trading range (see upward sloping green line), showing that demand is stronger as traders are buying at higher prices on the pullbacks.
Major resistance overhead is at the same area as shown by the horizontal red line.
This pattern is what some classical technicians call an ascending triangle.
However, those terms can be very misleading without applying MTS to the Setup.
Master Trader Technical Strategies (MTS) teaches patterns, MTS also teaches how to objectively read the “messages” of individual bars (Bar-by-Bar Analysis) to see if they confirm or refute what the current price pattern suggests.
The MTS Void Concept
As with all trade setups, we need a Price Void on the time frame being traded, meaning there is insignificant resistance to the left for longs, allowing the issue to move higher towards its target.
Because of the big support area made on TSLA over the past month, once it breaks out, it should move to the next resistance area, which is around $680, so there is a good Void.
If the broader markets were all bullish, the Setup would be a directional trade candidate for bullish stock or options trades.
However, because of the bearish close in SPY, DIA, IWM, commodities, financials, and the Transports, we opted just for a short credit spread income trade.
Below is the trade recommendation we gave in our Weekly Options Trader, which was one of eight trades given.
6/21: TSLA – Over $628.35, consider shorting Jun (6/25) $590/570 bull put credit spread for a limit of $1.60/share (closed at $1.77/share). Breakout of an ascending triangle at 20/200-MA. Stop $593.48.
Master Trader Tip: Shorting credit spreads have a higher probability of profit since we make money as long as TSLA closes (expires) above the short $590 strike price in a few days.
The relative strength of the NASDAQ 100 is supportive that TSLA can move above the highs if QQQ can continue to hold onto its recent strength and make new all-time highs again.
SEE WHAT OTHERS ARE SAYING BELOW!
These trades are easy to find, enter and manage for any type of trader or investor.
Although we timely advise and document all trade management adjustments in our Letter, we had many subscribers email us in amazement on our ability to find quality trades and manage them for incredible short-term profits.
This should be a real “wake up” call to those option traders who naively believe that chart reading produces “no edge.”
To learn how to find, trade, and manage these short-term option Income Trades on your own, you owe it to yourself to take our Mastering Advanced Credit Spreads course, click HERE
Good trading folks! Do yourself a favor and get on the “fast path” to learning with one of our seminars!
Click Here to Learn The Master Trader Swing Trading Strategies to profits over a few days to weeks.
We love hearing from our subscribers about their successes and journey towards trading mastery!
“Hi Greg & Dan!
I have been following you for about a year and a half after being burned by several churn and burn operations. I have been looking for a solid education, and I believe you guys are the real deal. I have recently taken a couple of small courses with you and plan on diving into the more advanced courses when I have completed these. You have the ring of truth and sincerity about you.
Thank you for the advice and for all you do! I never miss your Wednesday classes.”
Your Friend,
Brian L.
“Hi coach!
Just want to say the consistency on my end has been…. well, CONSISTENT!
Since I started learning from MT, my batting average & confidence have increased 10 fold.
It’s finally becoming a habit for my brain to look for the “something something bar” and/or a “tell” before taking a trade (of course, I still make sure to have a compelling pattern with void and I always start with the daily chart)…
I think I would’ve thrown in the towel by now if I didn’t discover MT. I hope u and Greg continue to do this for a VERY LONG TIME! your green room, daily recap vids, weekly education are so valuable and priceless. I wish Greg’s old students would come and re-learn some of the things since I still see that they use the old methods (very tight stop scalpers)…
again, THANK U FOR ALL THAT U AND GREG DO! You both are really the best mentors in this industry! cheers~”
best,
Rog Y.
“Thank you Dan and Greg for your Patience and Service! You guys really are Master Traders! 7 Years I have been Trading, and not till I met MT did I start Making Money, and Making Money Fast. Thanks again Guys…..”
Carlos H.
Master Trader and You Building Your Financial Future Together!
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra Managing Director of Master Trader
Dan Gibby Chief Options Strategist
