[isatrader]

just to clarify the purpose of the trend lines you have drawn in, are you suggesting the ideal time to short these stocks is when they violate the trend lines?

No, not necessarily, as each stock is different. I just draw them in to highlight areas of support and resistance, continuation points, or the shape of the chart etc, as it helps to draw attention to the patterns I'm seeing.

The book says the ideal time to short is the initial Stage 4A breakdown point, or the pullback to that area and subsequent rollover, or on a continuation point lower.