I appreciate your thoughts on this but once again have to respectfully disagree. Of course, in hindsight it is easy to say these, or any, short trades that had an initial bounce that exceeded the point where they broke down below a wedge were shorted “too early” but I’ve traded hundreds, if not thousands of wedge breakouts, long & short (falling & rising wedges) over the years & can say this: Sometimes, like with most of these recent trades, you do get that initial snap-back rally that takes prices above (when shorting rising wedge) or below (when going long on a bullish falling wedge breakout) the level where prices broke out of the wedge & sometimes you don’t. If I get some time today, I will share some examples of wedge breakouts where prices either exploded higher (as wedges often act as coiled springs) or at least never looked back, with the stock continuing in the direction of the breakout without any reactions or snap-backs to or even near the entry point until the trade was very profitable.

Sometimes I will initiate a short position at the top (or bottom) of a wedge, sometimes while prices are still within the wedge & sometimes even on an overshoot of the wedge at times (somewhat rare but one of the highest R/R trade entries when they happen). I will say with the utmost confidence, that the failure of the trades above is almost exclusively or at least largely due to the fact that many of those trades were entered around the time that the broad markets broke down below those 2 month trading ranges but failed as despite clearly bearish chart patterns, the rally in the broad markets following that false breakdown just over two weeks ago, particularly in the $NDX/QQQ, which has the biggest impact on those tech related trades, was the primary reason that each of those trades experienced a snap-back rally which took them back above the entry point & to the relatively tight suggested stops that I decided to list on those trades as the trend in the market was (and still is) indeterminable/sideways at the time.

As I stated in the video last week, that breakdown in the market below the trading range a couple of weeks ago was confirmed by just above every metric possible that you want to see for a breakdown & I would short it again just as I shorted the similar breakdown below the late 2015 trading range following the New Year’s gap (a perfect example of how some breakdowns are immediately followed by impulsive selling & never offered those waiting for a snap-back rally back above the breakdown level a chance to get in, instead leaving them long or in cash for one of the most profitable shorting opps in years).

you may misunderstand: an example would be shorting from the upper line of a wedge rather than the breakdown out of the wedge. or equal. short from upper resistance, not break downs.