Learn How to Short High-Probability Breakdown Setups
Trading high-probability Setups are the same for stocks, bonds, Index and Sector ETFs, commodities, or currencies — on any time frame!
Master Trader teaches many price patterns for trading stocks and options.
Using Bar-by-Bar Analysis, you will know what any price pattern signals — even one that can tell you to do nothing.
In this Trade Review we are going to show you the many traits of a bearish daily chart and how a high-probability short set up using Master Trader Strategies (MTS) which we gave to our subscribers.
With all Setups, we need a Price Void (insignificant resistance to the left for longs, or support for shorts), as you will see here.
Below is a daily chart of The Walt Disney Company (DIS):
DIS had a bullish gap up in November; however, it gapped to resistance.
Also notice all of the declining moving averages (20-, 50-, and 200-MA), showing that the trend is down on multiple time frames.
Master Trader teaches many price patterns in uptrends, downtrends, and sideways trends.
After the large bearish gap down under support, DIS failed to retrace into the gap. That is bearish.
Subsequently, it went sideways to down for four days, unable to retrace. That is even more bearish. That was a suitable Setup to short then.
But what got our attention was the bearish gap down on Jan 14th, under all of the consolidation, which left much overhead resistance (Supply).
Also notice that during that consolidation, DIS was unable to make any meaningful advance or breakout; instead, getting slammed right back down on every attempt. That is bearish.
The analysis is explained in nightly letter videos for subscribers.
After this bearish gap down under support on 1/14, DIS had two bearish inside bars, unable to bounce, closing with Topping Tails (TT) and below the declining 20- and 50-MA. That is very bearish.
We shorted under the 1/19 red bearish inside candle as the “weight of the evidence” as we say it is down!
Once in a trade, we are in trade management mode. We simply covered in partial lots into weakness, booking 7.6 points in three days
Management updates are sent intra-day by text message to subscribers.
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