How The Power of 3 In the Markets Signaled Two Explosive Winners For Hit & Run Members

Markets oftentimes play out in 3s.

Cup & Handles, triple tops and bottoms, Head & Shoulders patterns.

I developed a strategy I call a Rule of 4 Breakout when a stock (or market) breaks out of a lateral or angular 3 point trendline.

Before Wednesday’s close we alerted Hit & Run members to go long ASAN, anticipating a Rule of 4 Breakout.

The presumption was that ASAN was coiled, suggesting a Catch Up Play with other growth glamours made for a potentially explosive trade.

A 10 min ASAN shows Thursday’s big gap followed by a plumb-line drop to Phil D Gap for a textbook Side Door Entry which perpetuated a push to test the morning highs.

EDIT was a long trade idea from Wednesday night’s Hit & Run Stock Report.

EDIT also showed a pending Rule of 4.

It had the benefit of a mini Cup & Handle.

In my experience, when there is more than one pattern underpinning a setup, the Law of Multiples applies: combo setups have a greater likelihood of following through.

In sum, underlying all stock movement is the natural cycles of expansion and contraction.

Stocks inhale and exhale.

EDIT exhaled into its Climax Run into June 30 before pulling back to “the pivot.”

Notice that the expansion and contraction occurs directionally as well as to the size of the bars.

Patterns are like X-rays of stocks. Patterns are the stock market talking to us. They are the accumulation of everything that is known.

They do a good job of identifying sentiment and trends.

The current runaway Tractor Beams in many stocks is the market screaming at us that a top is on deck.

Get Jeff Cooper's FREE eBook: Unlock the Secrets of the Square of 9...

Download Now

99.999% of traders have never even seen the Square of 9... let alone understand its potential.

Do you dare to be different?