UAL: The Master Trader 1-2-3 Continuation (+123) is a very potent igniting pattern that can be traded on all time frames. We prefer trading them from a consolidation because that ignites a new move. As with all Setups, we require a Price Void (i.e., insignificant resistance to the left for longs). In the case of UAL, it actually started as a Buy Setup (i.e., retracement and reversal on support in an uptrend) with a potent bullish Wide Range Bar (+WRB) reversal. This +WRB reversal is even more “potent” because it negated a bearish gap down on earnings and rapidly closed and exceed the gap resistance. The reversal also occurred at the 50-MA which was rising so UAL was is an intermediate-term uptrend. After the +WRB, there was a bullish inside bar which stayed in the upper 40% of the +WRB. This is a +123 where we look for bullish stock or option trades once it trades over the high of these two candles which had a clear above Price Void. It triggered where shown, providing us with an easy-to-manage profitable swing trade where we sold into strength.
GME: Learn This Strategy Where You Profit Even if the Stock Moves 100% Against You In Hours!
A Master Trader Climactic Sell Setup is when a stock rallies rapidly away from the 20-MA and reverses. It shows extreme greed/euphoria with the reversal signaling the short-term end of the bullish advance. You can clearly see how GME got extended on the 15-Min. chart using any objective means of measurement (% move in a short time, distance from 20-MA, etc.). It has “been in the news lately” as a renewed “meme stock,” causing crazy up and down moves for the astute to capitalize on reversals. We love to sell short-term expiring calls and puts as Income Trades at turning points. For 0 DTE trades, we look for an intra-day setup suggesting that the stock or ETF would not advance beyond for the day. With GME on Friday expiration day, it actually gapped down and closed with a bullish Wide Range Bar (+WRB), which is bullish. It’s what happened next that got our attention for the trade: it totally negated that +WRB the following two bars. That is a potent reversal suggesting a short-term high. Because of high implied volatility surrounding this GME meme stock, the option prices was extremely elevated – even those that expired in hours, setting up this trade!
We notified our subscribers with the new trade Telegram Alert to sell the far away $85 strike call options – an astonishing over 100% away! As long as GME closes below $85 at 4 ET expiration, then the calls expire worthless for full profit. These are what we call Income Trades where we collect premium which is full profit if it expires below that short strike price by expiration. This is the update of our open trade: “2/16: SMCI – Shorted Feb (2/23) $1500 calls for $7.80/share. Our spreadsheet only calculated selling one contract, whereby $70 of premium was received ($700 on 10 contracts). We closed it at 1 penny just to ensure 100% no assignment risk, booking 99% of the Max Gain achievable in hours! This is a great strategy using Master Trader Strategies with option trading!
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Mick T.
I learned a lot going through the MTS course; so far I reviewed it three times and each time, I discovered wealth of new insights. I am also a member of the Advisory Letter and the Weekly Options: where else can you find a batting average higher than 85%. Greg and Dan are not only Master Trader but also Master Teachers; I don’t miss the Wednesday lessons (MT Live) where you learn how to find that something something to boast your returns. I am addicted.
Ibrahim A.
You guys are the only two traders that teach candlesticks and relate them directly to trade setups. I have learned so much and it has actually turned me into a profitable NQ trader which is where I cut my teeth. Could not consistently achieve “green” days until I found MasterTrader. Now I am learning stocks, and options and swing trading. It is all starting to make sense. Before, it was a jumbled mess. I would highly recommend MT because you 2 are traders, teachers, and mentors. This does not exist in the “learn to trade” world. I find your pre-market and live market trading second to none. Also, you give pre-made scans to students for TC 2000 which is invaluable! Really - it is priceless! For me, you guys have all the bases covered short of you sitting with me at my computer teaching me what to do....but you guys already do that too--- daily!