Master Trader Top Technical Patterns for Swing Trading and High … Technical Patterns for...
Transcript of Master Trader Top Technical Patterns for Swing Trading and High … Technical Patterns for...
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Wealth Creation Simplified
Master Trader Top Technical Patterns for Swing Trading and High-Probability Credit Spreads for Income
AFTA – Dallas, November 13, 2018
Dan Gibby, Master [email protected]
25+ Year Stock & Option Expert
Master Trader Stock and Option Education
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Wealth Creation SimplifiedBenefits of Attending Today
• Whether you are a short-term trader, investor, or have a money manager, learning the Master Trader Approach to Investing and Trading will give you the proper mindset.
• You will learn Why and How to trade Master Trader’s Top Swing Trading Patterns.
• Master Trader Strategies (MTS) apply to all tradable instrument and time frames.
• Generate weekly income by Selling Options using MTS learned today.
• What moves stocks? Reality (candlesticks and patterns) versus Fiction/Media/Fear.
• Our approach will help you become more consistent and profitable!
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Wealth Creation SimplifiedAbout Master Trader Co-Founder and Managing Director
• Trading in the financial markets since 1990s, with expertise in technical analysis and portfolio management using stock and option strategies. Learn from my mistakes!
• Managed over 1500 traders for a global proprietary trading firm with 100+ offices worldwide.
• Consult for hedge funds and high net worth investors for education and to help them generate superior risk adjusted returns.
• Formed Master Trader with Master Technician Greg Capra; we Trade, Consult, Educate, and Succeed.
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Disclaimer
It should not be assumed that the methods, techniques, or indicators presented in this book and seminar will be profitable or thatthey will not result in losses. Past results are not necessarily indicative of future results. Examples in this book and seminar arefor educational purposes only. This is not a solicitation of any order to buy or sell.
“HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE ANACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCETHE TRADES IN THIS BOOK and SEMINAR HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS WE STATE MAYHAVE UNDER OR OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH ASLACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THATTHEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANYACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.”
The authors and publisher assume no responsibilities for actions taken by readers. The authors and publisher are not providinginvestment advice. The authors and publisher do not make any claims, promises, or guarantees that any suggestions, systems,trading strategies, or information will result in a profit, loss, or any other desired result. All readers and seminar attendees assumeall risk, including but not limited to the risk of trading losses.
Master Trader Consulting, Inc. and all "affiliated" individuals assume no responsibilities for your trading and investment results.
Copyright © MasterTrader.com
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Wealth Creation Simplified
Master Trader Objective Approach to Trading and Investing
Master Trader Method (MTM)
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Wealth Creation SimplifiedMaster Trader Approach to Investing and Trading
• A “Method” – Proper education and training (MT Seminars).
• Master Trader Approach – High probability Setup, then Enterand Manage per your Trading Plan unemotionally and objectively.
• Master Trader Chart Patterns are our Edge.
• Objective vs. Subjective – “It is what it is.”
• Experience – Goal is Unconscious Competence level (Trade Review, MT Advisory Letters, Green Room, YouTube, etc.).
Master Trader Key Concepts
Master Trader Tip: Discipline and Patience to Follow Your Plan and Method!
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Wealth Creation SimplifiedMaster Trader Technical Strategies
Patterns communicate how traders have acted and what their beliefs (expectations) are in that time frame, at the moment.
Candles provide a picture of those expectations on an ongoing basis.
Those pictures speak to us in “Candle Language” and are the basis for our continuous thoughts and trading decisions.
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Ready to Stop the Craziness?
Chart Artist ?
Indicators and Course Package Value $4,997 – Today $495!
Master Trader Technical Strategies (MTS)
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Wealth Creation SimplifiedMaster Trader Bullish Trade Setups
A +123 (123 Continuation)Bearish Pattern is -123
A +180 (Bull 180)Bearish Pattern is -180
A W-BottomBearish Pattern is M-Top
A MTB (Master Trader Buy)Bearish Pattern is MTS
A RBI (Red Bar Ignored)Bearish Pattern is GBI
A Breakdown Failure (BDF)Bearish Pattern is Breakout Failure
Any Condensed?
A Failed MTS Bearish Pattern Failed MTB
Call it what you want, it’s going up!
These are common patterns as a guide, but use Master Trader tools (Bar By Bar, etc.) to see what is forming and determine your action or the lack thereof.
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Wealth Creation SimplifiedWays to Get Bullish on Any Instrument
• Long Underlying (Delta 1.0) – Unlimited gain; Max Loss is Debit.
• Covered Call - Long Stock + Short Call.
• Long Calls – Directional long bias with leverage.
• Bull Call Debit/Diagonal Spreads – Long bias with positive Time Decay.
• Short Puts/Credit Spreads – Getting Paid through time decay by selling options around compelling chart patterns.
• Note: Today’s focus is on trading Stocks/ETFs and selling Options/Spreads.
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Wealth Creation Simplified
Master Trader Top Technical Patterns for Swing Trading
Master Trader Strategies (MTS)
Support
Support
Support
Support
Candles?
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Wealth Creation SimplifiedTop 5 Master Trader Patterns Covered
• Master Trader Buy and Sell Setups
• Master Trader Breakouts and Breakdowns
• Bullish +123 Continuation from Consolidation
• Professional Igniting Gap
• Master Trader M and W Reversals
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Wealth Creation Simplified#1 - Master Trader Buy and Sell Setups
Pictures of Buying Pictures of Selling
Support
Support
Support
Support
Candles?
Resistance
Resistance
Resistance
Resistance
Candles?
When Trending
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mS
MS
K.I.S.S. Method: Pull back – and reversal – at Support in an uptrend.
#1 - Master Trader Buy Setup
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Wealth Creation Simplified#1 - Master Trader Buy Setup
Daily - EIGI
Breakout and then pullback to Support and r20-MA with Bottoming Tail (BT)
Consolidation Over Time
r20/50 & 200-MA
Bullish Volume
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Buyers and Sellers of Put Options
• Option – Contract allowing for the right to buy or sell something during a specifictime, for a specific price.
• Put Buyer – Pays for the right to Sell stock,Bearish.
• Put Seller – Receives money for assuming theobligation to Buy stock, Bullish.
• Selling options increases the Probability of Profit.
• We will teach you how to sell Puts/Spreads with charts for profit with ease.
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Master Trader Technical Strategies With Option Trading for Monthly Income!
Master Trader Money Patterns to Sell Puts/Spreads
$$ Credit $$ Credit $$ Credit $$ Credit
$$ Credit $$ Credit $$ Credit
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Wealth Creation SimplifiedMaster Trader Weekly Options Trader
• Generate weekly income by determining price levels that will not be violated for a few days until Expiration!
• Master Trader Method (MTM) combines specific chart patterns and volatility analysis to sell short-term expiring options.
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• Great opportunities with Gaps, Earnings, Failed Patterns, and Volatility trades.
• Defined Portfolio of liquid Stocks, ETFs, Indices, Currencies and Commodities.
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Wealth Creation Simplified#2 - Master Trader Breakout and Breakdown
Correct Breakout Play
Correct Breakdown Play
mS
mR
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Wealth Creation Simplified#2 - Master Trader Breakout
Daily - EIGI
Breakout from bullish consolidation above r20-MA
Consolidation Over Time
+WRB Igniting Breakout on +Vol. r20/50 &
200-MA
Bullish Volume
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Breakout and no Retracement into +WRB, Bullish
Daily - GRMN
R20/50-MA
#2 - Master Trader Breakout
r20/50 & 200-MA
Breakout with Price Void
Daily - GRMN
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Breakout and no Retracement into +WRB, Bullish
Daily - GRMN
R20/50-MA
Master Trader Breakout With Multiple Time Frame Alignment
r20/50 & 200-MA
Breakout with Price Void
Monthly -GRMN
Price Void
Breakout
Monthly - GRMN
r20/50 & 200-MA
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Wealth Creation Simplified#2 - Master Trader Breakout on Intra-Day Chart
Neckline Resistance
5-Min. - FB
Buy Breakout, Price Void above
Breakdown Failure
Stop
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Major Support – Tested 3x
Daily - BA
Daily - XAR
Daily -PLAY
• Pattern: Breakdown at 200-MA and daily downtrend.
Discuss Marked Breakdowns and Stock/Option Strategies
Daily – GS
Daily - PLAY
d20/50-MA
Breakdown
Breakdown
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Breakout and no Retracement into +WRB, Bullish
R20/50-MA
#3 - Master Trader Bullish +123 Continuation
r20/50 & 200-MA
+WRB Breakout from multi-month consolidation, Bullish
Daily - ROST
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Breakout and no Retracement into +WRB, Bullish
$232.50Daily - BAWhat do the Candles, Pattern, Trend, and Retracements suggest about Supply and Demand?
Daily - BA
R20/50-MA
#3 - Master Trader Bullish +123 Continuation
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Wealth Creation Simplified-WRB Igniting
Daily - MAN
Discuss Moving Averages here
Service recommended buying here with $120 target
Discuss Trend, Retracement, Green Bars Ignored, etc.
Breakdown Failure on negative earnings?
-WRB Igniting Breakdown on +Vol.
d20/50 & 200-MA
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Wealth Creation Simplified#4 - Professional Igniting Gap Breakout
• Pro Gap – Clears significant Resistance and ignites a New Move.
• Can be from Consolidation or Shock Pattern (e.g., reversing Bearish pattern).
• Need Price Void and bullish intra-day setup.
Major Support
Note: Reverse for Bearish Pro Gaps.
Master gaps with MT Advanced Gap Strategies (AGS)
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Wealth Creation Simplified#4 - Professional Igniting Gap Breakout
Weekly - MA
Bearish Pro Gap Breakdown
Daily - SMTC
Weekly
+WRBPro Gap Breakout and +WRB Igniting on +Vol., Price Void, Bullish
SupportHL
HL
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Bullish Pro Gap With Intraday Entry and MTF Alignment
Pro Gap, high IVR, sell OTM puts and/or buy ITM call spreads
Daily - SEND
Consolidation in strong uptrend, r20/50-MA
5-Min. Chart
Daily - SEND
r20/50 & 200-MA
Gap Breakout
5-Min. Chart
Weekly
5- or 30-Min. high ideal entries with bullish Multiple Time Frames (MTF)
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• Pattern: Bullish +123 continuation following Pro Gap.
Sell Spread
Major Support – Tested 3x
Daily - BA
Daily - ALL 2x Top & Reversal
Daily - XAR
#4 - Professional Igniting Gap Breakout
Daily - ALL
The Master Trader Technical Strategies WithOption Trading for Monthly Income!
Bullish +123
Pro Gap
Bullish rising 20/50/200-MAs
• Sold $97.5/95 Bull Put Credit Spread (10 DTE) for $.57/share.
$.57/share$97.5
$95
• 29.5% ROC ($.57/1.93).
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Wealth Creation Simplified#4 - Professional Igniting Gap Breakdown
Daily - HMNY
Continuation Breakdown with no retracement, Bearish
Bearish Pro Gap Breakdown
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Wealth Creation SimplifiedSetup #5 - M & W Reversal Patterns
NH Shock!
Potent reversal after a Retest
Deep move into prior consolidation
Retest of potent reversal and reversal
M-Tops
W-BottomsNL Shock!
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Wealth Creation SimplifiedW Reversal & Master Trader Technical Strategies
As fear and greed increase, ranges expand – momentum.
As fear and greed decrease, ranges or bodies contract.
Momentum Increases - Slows – Reverses.
Potent?
Range expands after multiple bars in one direction
Range expands after contraction
Range and bodies contract NFT to -WRB
2-Bar reversal 180! Same as a BT
BT
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Wealth Creation SimplifiedMaster Trader Option Income Strategy With Oversold W Reversal
• Strategy: Income Trade, 96% Implied Volatility Rank on High Fear after 12.9% Selloff.
• Short $155/147 Bull Put Credit Spread for $.56/share (3 DTE).
• 7.5% ROC ($.56/7.44) if expires worthless above $155.00.
• 6% Cushion to Max Profit.
R20 > r50 > r200MA
BreakoutDaily - XLK
Major Support
Daily - RF
HL
Ugly Breakdown negated, Bullish
Daily - FITB
BTs on mSMajor Support R20 > r50
> r200MA
Breakout
HL
Congestion broke uptrend of HH/HL
160 point run in 8 days (11%)
Daily - FB
Major Support
Gap Breakout
Bear Gap Breakdown
Bullish W Bottom
15-Min. - FB
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Wealth Creation SimplifiedBullish Retest Patterns at r50-MA
Breakout and no Retracement into +WRB, Bullish
• Pattern: 2x Top after CSS and BOF
• Strategy: Income Trade, Sell Calls on Topping Pattern for Time Decay.
• Shorting Aug (8/25) $232.5/237.5 Bear Call Spread for $.45/share (8 DTE).
• 9.8% ROI ($.45/4.55 Max Loss) if Expires below $232.50.
$232.50Daily - XNET $232.50
Daily - XNETDaily - OSTK
Bullish Gap from consolidation on r50-MA and Minor Support, Bullish
Bullish Retest at r50-MA and Major Support, Bullish
Although not a textbook W Pattern, the bullish message is the same!
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Daily - ZUMZ
Discuss Quality of W & M Reversal Patterns
Daily - NKEDaily - NKE
r20/50-MA
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Wealth Creation SimplifiedSwing Trading Can Provide Big Profits in Days to Weeks
Swing Trading Course + Advanced Management Strategies Free!www.mastertrader.com/Swing-AMS
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Wealth Creation SimplifiedMake Money With Little Effort By Selling Credit Spreads!
https://mastertrader.com/SpreadTrader
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Wealth Creation SimplifiedMaster Trader Green Trading Room
For 3-Day Trial, https://mastertrader.com/GreenTrial
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Wealth Creation Simplified
Learn to Recognize and Profit from Failed Patterns
Nov. 15th, 2018
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Main Swing Trading Scanning Page
Now Let’s Do Some Pattern Scanning!