What Are Sell Short Tips Professional Traders Use? - Candlestick Patterns Explained by TechniTrader®

Determine Stock Trends & Stock Market Participant Groups

The sell side of the market, aka the downside, is not the same as the buy side, aka the upside. One of the big reasons is that when the Stock Market is moving up on a long-term primary trend, ALL 9 Stock Market Participant Groups are buying stocks. This sustains the trend far longer than the downside. A Bull Market tends to last 10–15 years, whereas a Bear Market historically lasts 1–3 years. This is an important fact to keep in mind when preparing to Sell Short, so the first step for trading Sell Short is to determine the most likely duration of the Market Correction.

The first Sell Short Tip Professional Traders use is to determine which trend the Market Correction is on:

Short-term trend
Intermediate-term trend
Long-term trend

Once you have established what trend is correcting based on whether the short-term, intermediate-term, or long-term uptrend was overextended and too steep to sustain, you can then start to establish how price action will behave.

The second Sell Short Tip Professional Traders use is to determine the following:

Which Stock Market Participant Groups will be trading Sell Short for profit.
Which Stock Market Participant Groups will be rotating out prior to the Topping Candlestick Pattern.

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Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses