How do you make money when the market is going down? Traders We've been seeing months of sell off in the stock market and many of you have been asking me this question: double Trader How do you make money when Buy Low Sell high no longer works well Then you need to learn this new trading strategy. the Technical Bounce Short Setup which is the exact strategy I use to trade stocks like Gme AMC Sava and made some decent profits while limiting my risk to make things very easy for you to understand. I'm going to demonstrate how to execute this strategy in three steps: price action, leading into the setup, executing the strategy, and most importantly risk management. It really takes me hours to plan and make my trading lessons easy to digest for you guys and girls.

so all I need from you is to comment down below and let me know if you get some value for from these kind of videos. and don't forget to smash the like button I Appreciate it in the simplest terms, when you are trading this Technical Bounce Short strategy, you're looking for stocks that have failed to break out in order to show it into because if a breakout fails at a key level, there's a high probability of the stock unwinding to the downside and that is how we can profit as a short seller on this particular strategy. The first step to trading the strategy is to look for stocks that's selling off after a failed breakout. So in this example here we have the stock AMC which is a stock that you should all be very familiar with.

So we can see on this particular day AMC broke out through that seven Dollars key level on the daily chart and why that's the most important level? Looking at a daily chart, you can see the Seven Dollars line here. It's been rejected prior days multiple times and that was also the previous support levels on The Daily charts back in September and all the way back here in around June and July. So that's why we know that Seven Dollars key level area is significant. so you can see on this morning when listing had a high volume breakout.

on the five minute chart you can see on the five minute volume candle down here, there's a lot of volume breaking out out of the average right if you look at the last couple of trading days, the voting was never this High until this day. So when you broke through that seven Dollars mark, it went through all the way to 710 720s and that's great and all. and you can see on the charts here. Shortly after breaking out of the Seven Dollars range, the stock actually rejected the high 720s and cracking down below that seven Dollars once again.

And if you've been watching all the lessons I posted on this channel, you know that if a stock breaks out but fails to hold that breakout and actually break down below that key level, that's what we called a false breakout or rejection on the deity and this kind of price action is exactly what we need in order to short into one more thing to note, since we're talking about AMC here we need to bring up GameStop which on the same day it's trading with AMC move GameStop Gme actually gapped up pre-market As you can see here on this day, pre-market gapped up uh, all the way from 28 to around 30 dollars. and that thing also broke out and tested some key daily levels. So the exact same price action is AMC So you can see GameStop is very similar price action. It broke through the these two daily breakout areas at 32s and 34 dollars.

However, it was also unable to hold the breakout you can see once it breaks through 32 dollars on the 34.50s and then came all the way back down and these are like five minute candles. I Believe there was some volatility holds involved with GameStop but after it broke down 34 32s, you can see this thing just sold off all the way to a Down inside. So just remember these two meme stocks. They often follow each other, so save these charts on GameStop and AMC if you need to.

Essentially, when looking for a stock to break out, test those key daily levels like right here 32 34 and fail to hold those levels and came all the way back down. That's gonna be the first step of the strategy before we move on to the second step of the strategy I Know we're talking a lot about short selling here, but for those who prefer to trade on the long side meaning to buy low and sell High I Have a free course that's going over my favorite long strategy in the market right now including risk management. so if you're interested in the free course, you can get that through the link down below. Okay, moving on to the second step of this trading strategy.

You need to wait for a bounce after the failed breakout in order to shoot into essentially The Crucial part about this step is to wait for the perfect entry point when you are short selling these stocks. So looking at the AMC charts here, you can see even though yes, I did start in early around seven dollars seven tens, but I only added into the short position once the thing had broken down into 680s and then started bouncing towards that seven dollars again. So this seven dollars Mark around the view up area 690 693 These are my entry points for the short side. very important here.

Do not show its weakness into support areas. If you need to, then make sure it's you know, with partial size maybe one tenth position. I Would always wait for the bounce to add into bigger positions on the short side when trading the strategy by waiting for the bounce. this will provide you much better risky word on your trades when you are executing the strategy.

So that's why on this. AMC Shorts I Waited for that seven dollars bounce area to add it into my position and same idea for the Gme short I Waited for the stock to bounce from thirty dollars to around 32.33 to re-add into the short position essentially wait for the bounce hence the name the Technical Bounce Short Strategy. Moving on to the third step for executing the strategy, you want to make sure you're assessing the risk reward ratio. To the downside: Essentially, you want to make sure there's at least one to two, or even better, one to three and more profit ratio in order to make it worth your risk to trade this particular stock.

So in this: AMC example, if we are getting short on the small bounce around the 690s area and risking the reclaim of that key level at seven, that means we're risking about 10 cents. Now, if we're risking 10 cents, we want to make sure we can at least make 20 cents, 30 cents or even more to the downside. So let's look at the chart Is this risky word with it. You can see from the charts here.

if we are risking that seven dollars, we'll put potentially trying to hold that short position to words. At 680s, ideally 680s, you can see that some pre-market levels and even lower down Here we have about 670s. So that means if we entered at 690, we have potential downside to make 20 cents or even more if it goes all the way to a priorities closed area around the 650s mark. So For this particular trade, the minimum risk award is probably only about one to two or one to three because you're risking 10 cents to potentially make 30 cents or more.

Now looking at a GameStop example, you can see that I got in way too early on the first trade on the short side. so I showed it around 31 60, 3150s. I'm risking higher day through 32 dollars. So I was risking about a dollar which I took a loss for.

But if you really look at the downside, you know if I risk a dollar is already two dollars. Downside: at the open, you have downside to about 30 30 dollars. so that's no less than one to two Rescue word. So the first trade was not good risk award at all and I'm glad I stopped out.

But the second trade once I started shorting the bounce around that 3250s area, then I'm risking the previous highs around 33 dollars right here. So let's just say I'm also risking a dollar. Give it room given that GameStop is a very volatile stock. Is there enough downside to make this trade worth it? Remember, we're aiming for one to two or one to three.

Risk a word. So where can the stock possibly unwind to where can you fall under? So if I'm risking a dollar I want to make sure I can make two dollars, three dollars, or even more below that thirty dollars. you have downside 231 which is the pre-market highs area and also the opening lows 31, 30 and potentially down to 29 and 28.. So the downside is potentially two three dollars for GameStop and even more actually went on all the way to 28 dollars.

So the second trade has really, really great risk award. So keep in mind once you enter the stock short on this bounce area 32 dollars. The risk is now over the previous highs around 33s and once it breaks down that key level down below view up to 30 dollars, you want to move your risk down to that view up area. So that's how you keep on moving your risk down below so you never turn a winner into a loser and you want to cover into planned profit target areas around opening lows here, pre-market lows, and all the way around Prior days close.

This technical bounce short strategy is fairly straightforward, especially if you're a beginner. Trader But if you want to learn more about price action trading, then make sure to check out this video over there and remember to get my free strategy crash course down below. Let me know in the comment section if you have any questions about the strategy and remember to drop a like And subscribe. Thank you guys so much for watching! As always I'm the humble Trader and I'll see you guys next time.