Breakouts and Breakdowns come in different shapes and sizes, and many are afraid of trading them due to uncertainty and fear of failure, stemming from past failures.
In this one daily chart of REGN, there are three compelling Breakouts in a short time!
It’s time to transform hesitation into confidence. Breakouts and Breakdowns are among the most powerful and profitable setups in trading—if you know how to spot the right ones and execute like a pro.
Discover how we consistently turn these Swing Trading setups into high-probability money-makers.
Real Setup, Real Profit: See the Breakouts That Paid Big!
Master Trader +123 Continuation Breakout at the 20-MA
Imagine locking in a winning trade like this—just as our subscribers did, and why it was a no-brainer setup.
What happened:
CNC was in a wide bullish trading range for months above the 20- and 50-MA, bullish price action.
On 11/24 it had a bullish +Gap Breakout.
Then in retraced and had a bullish reversal on 12/10 at the 20-MA.
It then broke out and closed with a bullish Wide Range Bar (+WRB), giving the confidence that it should move higher, but it was extended.
It then retraced – albeit deeply – setting up a Buy Setup and reversal.
On 12/22, the Buy Setup triggered and closed with a +WRB Breakout bar from this bullish consolidation, with a Void to the left (i.e., insignificant resistance).
It got better with a +123 Setup!
The Simplicity of the Explosive Setup: +123
A bullish Wide Range Bar (+WRB) from consolidation and not far from the 20-MA, followed by one or more inside candles holding the upper 40% of the +WRB. The entry is over the high of these bars, with a stop under the +WRB. The opposite is a bearish -123 Continuation.
This is exactly what we got with CNC above the 20-MA with a Void.
We recommended buying the stock where shown, which was a bullish +123 Continuation Breakout.
The patterns using Master Trader Strategies (MTS) were very high-probability setups. Learn how to use MTS to time your entries to profit from selling options with charts with incredible accuracy. To learn our technical approach to trading anything that moves, CLICK HERE
Trade Execution:
We alerted our subscribers to buy the stock on 12/26 where shown (call options were too illiquid), with a protective stop under the +WRB. Once in the trade, we used bar-by-bar analysis to manage risk and maximize gains.
Profits That Speak for Themselves!
This trade was an easy-to-manage swing trade, generating a $810 Gain with 1000 shares in a no-brainer Swing trade Breakout.
The Master Trader Edge: Learn, Trade, Profit! At Master Trader, we don’t leave success to chance. We teach high-probability setups that align multiple MTS concepts, increasing the odds of winning trades. Our strategies are rooted in technical analysis and price patterns, revealing trader sentiment and the flow of money.
Master Trader Strategies (MTS) work in all market conditions, giving you an advantage whether you're trading stocks, ETFs, or options.
Join us today and start making consistent profits with confidence!
Master the Market. Trade Like a Pro. Profit Like a Master!
Put simply, this was a textbook alignment of technical patterns + macro context—the kind of combination that stacks the odds in your favor.
But if you want to learn the how and when—the exact entries, exits, and trade management strategies that turn opportunities into consistent profits for stocks and ETFs—then our Master Trader Course – Swing Trading Course is where you’ll get the full blueprint.
At Master Trader, we also teach how to buy and sell Options with our technical based approach. To learn these strategies, CLICK HERE.
Here is an Example of a recent Income Trade where we sold a call spread on a Breakdown pattern where we keep the full premium sold as long as the stock closes below the short strike at expiration.
Why Traders Love Selling Options
At Master Trader, we use an objective, rule-based approach to trading stocks, futures, cryptocurrencies, options – and, yes, in trading options.
One of our favorite income strategies is selling options and credit spreads around technical turning points. When you sell a put, you receive premium in exchange for the obligation to buy the stock (if the put buyer wants you to) on or before expiration.
We profit from time decay, when the underlying stock or ETF moves away from the reversal area, and volatility contraction. Our approach masters this.
Read about the Weekly Options Trader letter which sells options/spreads for weekly Income that expire in 10 days or less around Master Trader technical turning points, CLICK HERE.
The Setup (What & Why):
All of our trades start with an analysis of what led up to the Setup and then we apply the other MTS Concepts that make up our technical trading approach.
On 12/9, HOOD had a Breakout Failure, closing with a Topping Tail (TT).
On 12/11, it gapped down and closed with a bearish Wide Range Bar (-WRB).
It continued lower for two days and then had a two-week bearish consolidation below the 20/50-MA, bearish price action.
On 12/26, it had a bearish close, at the bottom of the consolidation area.
The gap down the following day was our signal to sell a call spread above the resistance consolidation.
On the Breakdown where shown, we recommended selling a 4 DTE sold $122/127 call spread for $.60/share, a no-brainer setup with high odds of success.
Selling a $122 strike call obligates you to sell (deliver) the stock at that strike price (if the call buyer wants you to) in exchange for the premium received. We typically recommend selling credit spreads as in this case (instead of naked) to lower buying power maintenance and reduce the potential loss in the event of a stop out.
As long as HOOD goes down or sideways into expiration, the call spread seller keeps the full premium as profit. The breakeven point is the $122 short call plus the $.60/share premium received, or $122.60. Our protective stop was over resistance.
The Outcome:
HOOD continued to fall after entry, which quickly caused the premium sold to quickly erode.
We recommended closing half lots to book gains and avoid further risk.
Example Profit: Selling 10 contracts (1 contract = 100 shares) of the recommended call spread could have produced a $600 gain in four days for simply calling a short-term top using MTS.
Reviews like this show you what to look for and why these setups work.
But if you want to learn the how and when—the exact option strategies, strike selection, and trade management rules that produce these kinds of results—you’ll get it step by step in our Master Trader Credit Spread or Directional Options Courses.
Read about the Weekly Options Trader letter which sells options/spreads for weekly Income that expire in 10 days or less around Master Trader technical turning points, CLICK HERE.
Don’t Wait to Make Money. The Next compelling Setup is Coming—Will You Be Ready?
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