GNTX: Many traders are paralyzed to buy Breakouts or short Breakdowns out of fear that they will quickly fail. Master Trader teaches how to detect the “tells” to ensure that these Setups will succeed. Let’s start with looking at the price action on GNTX at the first three blue arrows. All are signs of selling and inability to move higher. Let’s now focus on the noted dotted box at the fourth arrow which set up the Breakdown we recommended to subscribers as a swing short. The first bearish Wide Range Bar (-WRB) was a closing Breakdown, which was a short pattern under the low of that bar. The –WRB and 20-MA rolling over made all of the prior consolidation Major Resistance. We were ready to “strike” short once we got a Setup. It then had a bearish inside bar which stayed in the bottom 40% of the -WRB. This is what we call a Master Trader -123 Continuation Breakdown (-123); however, it didn’t trigger and, instead, had two more inside bars. Next it had a bearish gap and another -WRB Breakdown at the 50-MA, where we shorted it, booking a generous gain in an easy-to-manage swing trade.

MLKN: MLKN had a very bearish gap down but found buyers at the 200-MA and retraced. It got our attention when it gapped under a bullish green bar (a shock) and closed with a bearish Wide Range Bar (-WRB). That’s a bearish reversal in a downtrend. It then had a bearish inside bar which stayed in the bottom 40% of the –WRB, a Master Trader -123 Continuation Breakdown (-123). It then had an additional inside bar which traded over the high of the prior inside bar. We call this a bearish -1234 Continuation Breakdown (-1234) which is a better Setup than a -123 since it created a minor upside Shakeout, and is more overhead resistance once triggered under the lows. The -1234 triggered under the lows where we shorted it, booking a generous gain in a 3-day easy-to-manage swing trade.