CCI: A Master Trader Sell Setup is a retracement and bearish reversal at resistance in a downtrend. The Sell Setup in CCI occurred after a bearish -180 reversal (a bullish wide range green bar (+WRB) immediately followed by a bearish wide range red bar (-WRB)), which was a Breakout Failure. That day it closed with a very large –WRB, below support. After this close, we started monitoring for a short setup using Master Trader Strategies (MTS). In this case, it retraced to the 20/50-MA, which corresponded with about a 50% retracement into the –WRB, both logical places for the retracement to end. Price, however, tells us where to enter, which was under a prior day’s low where shown. We recommended to subscribers to purchase a bear put debit spread, which is a bearish directional options trade. We recommended buying put options in this case instead of shorting stock since liquid options give the benefit of leverage and limited risk. Only one contract was calculated for this trade costing a mere $325 (which controls 100 shares of the underlying stock). Following our simple trail methodology, the trade booked a nice gain in three trading days, representing an impressive 55% return on capital (ROC)!
ASO: Trading Breakouts and Breakdowns are great Setups in quality trends. ASO was in a quality downtrend, which started with a bearish Igniting gap on March 21st. Master Trader objectively defines a downtrend by two or more lower Pivot Highs (PH) and lower Pivot Lows (PL), marked by the red and blue dots. We also look for controlled selling, below the declining 20- and 50-MA, and bearish price action which includes (a) shallow retracements; (b) bullish bars being ignored; (c) controlled, systematic selling with declining and parallel 20- and 50-MAs; and (d) showing relative weakness to the sector and broader markets. While in a downtrend, notice the three marked bearish Upside Shakeouts showing bearish price action and inability to retrace and close above the declining 20-MA. Where shown, we recommended to subscribers to short the stock at the Breakdown. Looking to the left shows a Price Void, meaning there is insignificant support to halt a move lower to the next support area (not shown). Note that the SPY, DIA, QQQ closed at all-time highs as ASO marches lower, showing great relative weakness. ASO is an open trade. We took partial profits and are trailing the remaining position in an easy-to-manage swing trade.
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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!