This Free Indicator Changed My Life | Simpler Trading

all right hey everybody sound check can everybody hear me okay sounds like yes yes yes yes okay awesome all right well what I want to do is I want to talk about my favorite free indicator that really changed my trading life because prior to this I would trade I'd make a lot of money and then I would lose it all and I really didn't know why I was making money and I didn't know why I was losing money and obviously that was frustrating and so my thought was if I could identify the moments in time

where I'm making money and then just keep focusing on that that would make my life a lot easier and you know 17 18 years ago I stumbled across this kind of idea and turned it into a tool and it changed my trading life and so that's what I want to talk about uh tonight so my favorite setup so welcome let's Dive Right In so what we're going to cover is basically the ultimate guide to using the best free trading indicator out there why this tool is a game changer how it works and what it does

and then just how to set it up and how to use it and on top of this since I've been using this thing for like 18 years now over time you really start to learn the nuances of it and the tips and tricks are really how to maximize it and I want to share that with you guys as well so this really came to a head when I had made my first million dollar trade in 2014. now this is in January of 2014. now prior to this my biggest trades were six figures low six figures

in terms of making you know that amount of money in one day and once I kind of found this tool and I got into a rhythm and I was getting more consistent but I didn't have any what I would just call mind-blowing trades I mean making a million dollars in a day is kind of like a that's a game changer it makes you rethink what's possible and um it was a really fascinating moment at least in my trading history so what happened here was there was a squeeze this is the squeeze obviously we'll talk more

about it and you know the move here and this is way back when Tesla was like a hundred and fifty dollar stock pre-split if you can imagine that and this move was you know 25 some odd dollars and a very rapid amount of time and as I saw that it was working I kept adding to it and adding to it and adding to it because this tool told me that it was okay and then I got out when the Tool told me that it was no longer okay to be in and by the time the

dust settled uh the trade ended up being a 1.5 million dollar trade so I made a million dollars the first day and then the next day it gapped up I sold off the rest and you know it was it was amazing I mean it was a life it was life-changing in many ways because first of all it changed my perspective on what was possible to make during a day of trading but it also started me along the path of uh my belief which is that trading is a way to make money and then you owe

it to yourself to take some of that money out of the markets and put it into tangible assets that'll appreciate in value that you can utilize and that you can experience and um and we'll talk a little bit about that too this is a screenshot that I did of the trade uh this was towards the end of the day you know again it's so funny to see Tesla at 161 dollars but that was a huge percentage move that day closed the day you know up a million bucks that day held some of it overnight and

then it gapped up and it was it was just amazing and so what I did is I took uh money out of my account after that because suddenly now I had this you know account that went from uh it was high six figures to now you know being two and a half something million dollars and which at the time was the most money I'd ever had in a trading account and so I promptly took some of that out and put it as a down payment on this Ranch uh this is outside Austin Texas and we

still live here to this day we've added to it over the years and uh was ironic is at the time that I did it my friends all thought I was crazy since then the land values have gone up 4X and it's impossible to find land out here now I would love to buy more but there's just none available so you know it was a good investment long term it's something that we get to use and get to utilize it's been great having the kids growing up on it um but at the same time it gives

me a strong reason to trade like what's your why when you trade otherwise it just becomes a video game and I think when you have a strong why you actually take trading more seriously uh which I think is important because it is tough it is easy to treat this like a video game and then it's just like you make money you lose money and the cycle goes over and over and over again you really never understand why it's happening so so what's happened is over time too we've we've tweaked this we've added some additional tools

to this and in in 2014 that was a great year uh for Tesla then what happened is in 2020 a lot of things came together and we made some improvements in The Squeeze and it was just it was a really an amazing time and so on May 29 2020 um I posted this on Twitter it said all right as we head into the weekend you know we've got a daily squeeze we've got a four hour squeeze and these are time frames by the way so in the 60 Minute chart there was a squeeze on the

30 minute chart there was a squeeze as well and just looking at this and I sent this out I said look this is a lot of energy and this is the whole point of this is that there's a lot of energy building up and for a stock to move higher it needs a lot of energy it it just it takes so much energy for a stock to move higher and all that has to happen for a stock to fall is a lack of buying okay a stock can fall on its own weight as it just

starts taking out stop losses but for it to move higher there has to be a lot of energy expelled and you know this whole tool here tells you when there's a buildup of that energy and when there's this buildup of this energy it means it's about to be released and that's when you make the money and so I saw this happening and this is the you know this is a lot of time frames coming together I love daily charts but when they convert together with you know the four hour chart and the two hour chart

and the hourly chart it means there's Energy building up on multiple time frames and that becomes very very powerful and so what happened here on this one now again this is pre-split right so this is when the stock it hit a thousand dollars uh but this is before it split you know I think it was whatever it was five for one so you had this move where we went from about eight hundred and twenty dollars up to a thousand dollars in a very short amount of time so it was a hundred and eighty dollar move

I had my options in place and it turned into another million dollar trade on Tesla so this particular one I mean I'll talk about some of the strategies I do option wise here but I had a diagonal where you're buying calls that are a little further day out and then trying to offset that decay by selling calls against it now ironically had I not done that I could have made more money right because that it went through the strike but that's okay um and then bought some straight calls so that's nice you're just buying the

straight calls sold some puts and things like that too and turned into a six-figure uh seven figure trade in a short amount of time now this started off this chain reaction in Tesla where I had six million dollar trades in Tesla in 2020. and I ended up having million dollar trades and other stocks like Google uh and in other markets like gold too but Tesla is just a you know it was my first million dollar trade so it kind of has that special place in my heart and I always say like look you don't want

to get married to a stock just because you have a good experience with stock one time it doesn't mean it's going to keep working for you that being said though and I always like to say this I trade this setup not the stock so I know the setup that I'm looking for and I'm happy to look for that setup in a Home Depot or a McDonald's but I'm always going to look at Tesla and see if that setup is there first why because it's It's gotta it moves you know when the stock goes it'll go

20 points at a time when McDonald's goes it'll go two points at a time right that's fine so the point is is I'm not arbitrarily is that a word arbitrarily trade in Tesla like oh it's got to be no it's a specific setup and it's specifically it's the squeeze right so that's what we want to look for so these are uh and I've had a lot of other trades with the squeeze these are simply the ones that made over seven figures so in June 2020 million dollar trade that was the second one July 2020 million

dollar trade in August 2020 biggest trade ever turned into an almost a four million dollar trade on Tesla that was a crazy trade we'll talk a little bit about that I remember that too because thinkorswim actually went down uh for a couple days and I had to manage that on my phone which was crazy in August another million dollar trade in Tesla um in August a few weeks later another million dollar trade in November a million dollar trade and then in April my biggest trade ever was a five million dollar trade in Google straight up

squeeze and then in May uh there was a million dollar trade in gold and then there was another million dollar trade in bonds and and you know again the point of all this is like these are highlights they're examples of bigger trades but it was the same setup okay it wasn't like oh my God I think Google's going to do something here or oh well Tesla's a great stock let's buy some more it was no there's a bus the specific setup a specific things that came together that said all right there's a higher probability that

this is going to make a big move now like right now instead of just trading sideways because look if you buy like calls and the stock trades sideways you're dead Okay and eighty percent of the time stocks are trading sideways so the point is we gotta pinpoint that 20 of the time when there's an explosive move setting up and we can't guess like you know that's that doesn't work so this was the question that I had to answer for myself is when I went back and I looked at my winning trades and said okay what's

the commonality here why do some of these trades work out so great and then other times I just get my head ripped off what are the commonalities here and as I discovered as I discovered these commonalities and it was three things uh and I combine these together it's like wow this was amazing it's kind of like you know you're like Bollinger Bands and Keltner channels and momentum oscillators and and when these when these things do a specific thing when they come together in a certain way it's screaming loud and clear that there's a signal it's

screaming loud and clear that there's this buildup of energy and when this energy is released the move is going to be big it could be up it could be down and we'll talk about you know how do you figure out which way it's going to go but the point is this is the time to make a directional bet you know this is not the time to sit on the sidelines this is not the time to wonder what's going to happen it's your probabilities of success have increased exponentially over normal day-to-day market movement and that's when

you place your bets in fact the secret to trading is to recognize when you don't have an edge remember eighty percent of the time stocks are going back and forth you don't have an edge it's better to do nothing during that time and actually sit on cash a lot of times people forget there's three positions that you can have you can be long you can be short or you can be in cash and eighty percent of the time cash is where it's at okay because you don't have an edge and the way you make money

trading is you identify an edge so so the squeeze here is called the TTM squeeze TTM stands for a company called trade the markets that's uh something I that was a company I founded gosh 20 years ago and then eventually we change that name to simpler trading but people ask what does TTM stand for it just that happened to be the name of the company at the time this is a tool that's available for free and I'll show you you know where you can get it and stuff like that too so even though this thing

is 20 years old I use it every day I cannot look at a chart without it in fact to me if I'm looking at a chart without this tool I feel like I'm trading blind I'm like why would I ever you know want to do that why would I want to risk my hard-earned Capital honest situation where I don't feel like I have an edge and if there's no squeeze on the chart I do not have an edge okay now what's also happened over the last couple years is I've been using this thing for over

20 years we ended up doing some tweaks to it and making it even better all right and we'll get to that a little bit later uh first I just want to kind of show you the basics of how this works and then show you some of the improvements that we made so yeah so the TTM squeeze it is a free indicator that's out there it's available and um think or swim tasty Works Etc and I'll show you where you can find it but again free tool and these red dots are basically saying hey this is

one of those 20 moment moments in time where instead of this the stock just kind of going back and forth and back and forth it's up it's down it's up it's down it's training a range which dry it can drive you nuts if you're if you're buying a call right because you're up one day you're down the next you're losing premium Decay right and there's strategies you can do here of course like iron Condors but iron Condors which I like they're for income they're for paying the bills you're not going to make a million dollar

iron Condor trade okay if you're gonna make a million dollar trade it's because you caught a move you know you bought calls at six and you sold them at 50 right that's how you make money you know that's how you create wealth Trading um nothing wrong with income and I'm always looking for income and as I'm sitting there and I'm trading for income I'm like okay where's the next big move coming from and that's what I'm looking at here so this is Roblox you know we're trading we're trading sideways and then boom we have a

focused move of about 15 points and you can see here instead of range bound you know this is something where you can make money if you've got a directional trade on and we've got a signal telling us hey this is the time to make that bed okay so anyway so so that's all that so why you know why listen to me who am I to be talking about the squeeze um you know am I some guy that has started a tick tock tick tock Financial I haven't can't even say it right that is sort of

tick tock Financial Channel last week you know while I was living The Nomad life and yellowing my life savings um you know no so um my background is uh I didn't I'm from a military family so I grew up in a household that had a lot of discipline this was my great grandfather who was in World War One uh that's me in that lovely 1970s sofa this is my grandfather he was in World War II Amazing Story with him he was wounded in Italy and left for dead and they came back a week later he

was still alive he recovered in an Italian hospital for a year and if he wouldn't have made it back home my mom wouldn't have been born and of course I wouldn't have been born so a lot of courage and that's my father he was in Vietnam I never joined the military uh I think I had I I don't know why I'm actually a fan of discipline and I studied military history but um I kind of I don't know just military as I looked at it it was I respected it and just thought you know what

I'm trading as kind of my my life path so in 2005 I wrote a book called mastering the trade uh with McGraw-Hill at that point I'd been trading pretty actively my first trade was in high school so that was that was back in 1987. I didn't know what I was doing my father was a stockbroker my stepfather's uh he was a stockbroker and he kind of started showing me the ropes with options and I took it from there in 2005 I wrote a book called mastering the trade and then since then it's had a second

edition and a third edition the Third Edition of course is the most recent and uh so that's so that's been out there for a while and there was a there was a period of time where I was a sought after speaker and I would I did the speaker tour this was in I don't remember this was in Beijing or Shenzhen this is a great crowd this was in Prague when I was on stage I jokingly said I could use a beer and like 10 people ran out and brought me a beer which was amazing this

was in China uh signing books I've done CNBC all that kind of stuff and uh and that's great and that was a good experience but um and then through this whole process of trading I've had some amazing opportunities uh for a while I was doing and I still do some uh crude oil analysis for Richard Branson's company that's uh uh down there at Necker Island and I've also done some work with Virgin unite and uh on all that kind of stuff so that was that was really cool uh Branson was always a hero of mine

so it was awesome being able to use my turn my trading skill into a way just to kind of help him hedge oil you know for his Airlines but these days I don't I don't do any speaking anymore I have kids and I would rather watch my kids grow up and fly around the world doing talks and missing them and missing out on that so that's that's super important to me so I don't I don't do this speaker circuit anymore and at the end of the day I want to trade so if I'm flying around

doing talks it's actually kind of hard to trade so this is my general setup I obviously my you know multiple monitors make a lot of sense uh typically you know look at like say monthly weekly and daily stocks on one set of screens more intraday stuff and then of course you know email chat all that kind of stuff um I do like standing desks I spend part of the day standing part of the day sitting I think it's important to move around and I think it's good to have a good clean office environment you know

I do have I don't know if crystals work but I've got them in my office you know maybe they help maybe they don't um the crystals won't work without a good setup though so just FYI okay so let's look at a few more Tesla opportunity so amazing amazing squeeze here so this is so powerful now a lot of times when you get a stock like Tesla and it's going crazy you're not going to get a squeeze on a daily chart you know it could be months before you get another squeeze on a daily chart so

there are times when I got to drill down to like an intraday chart in this case 30 minutes this is the most powerful setup you're going to see when a stock has a huge run and then just starts to trade sideways okay meaning it doesn't retrace right it's not doing a 50 retracement or anything like that the momentum's coming down then you start to see the dots okay what are the dots I mean the dots mean there's a squeeze coming it's a squeeze of volatility the energy is is building up and then it's got to

release that energy okay so when I see something like this it's like man this is it's time to put on a big trade because not only are the odds of this going higher like in this case 85 percent but significantly higher not like oh my gosh look at that cute little ten dollar rally like 100 you know 10 rally five to ten percent rally and if if a underlying stock is moving five percent your options are doubling tripping tripling quadrupling on that move that's why options are so amazing so in this particular case this was

a nice uh almost two and a half million dollar trade so on this particular well to start this is actually not the finish of this so on this I bought a thousand shares of stock so I like to buy the stock because it you know I'll buy the stock at the same time sometimes I buy the options so I can get a sense of okay if the stock was at sixteen hundred and forty four dollars and now it's at eighteen hundred dollars what did the options do so when I bought the stock at one thousand

six hundred and forty four dollars and fifty cents notice that the call options I bought were out of the money okay most the time I think buying out of the money options is actually a bad idea in fact you'll always hear me saying hey look Buy in the money Delta 70 options 30 days out okay what's the exception to that the exception to that is if you have a squeeze if you have a squeeze on a stock that that tends to move like this you can go out of the money do it as a spread

okay that way you know it's a 100 wide spread I got it for Seventeen dollars basically right and in this case here you can see it's at sixty two dollars so I've got a huge amount of money on that but you know at that so the question is when do you take it off so I continued to hold this trade so why would I continue to hold this trade because the setup here so now here's the daily squeeze it had just fired okay it had just fired so it had more room to go um and

I wasn't necessarily in a huge hurry uh to get out of it now I mentioned earlier that thinkorswim went down nothing against sink or swim I love that platform but you know it did go down and I had to manage it from my iPhone so here's my thousand shares still um here's my call options and at this point the position is up 3.7 million dollars so you know the stock continued to go up and you'll notice here so now if I was you know a complete genius here I would have only bought the calls and

I would have sold calls against it you can see here that I'm down almost five million dollars on my short calls but of course I'm up 8.4 million on my long calls and of course the difference between that is my profit um you know of course plus the stock so you might ask like well why didn't you just buy the calls well look Tesla had a bigger move than even I thought was going to happen so you know typically it's like you measure out the move and you know the these short calls are going to

help offset the long calls and long story short though that's a great problem to have I never cry when something goes all the way through my debit spread that's fantastic plus and the thing that a lot of Traders will never tell you is that it is hard to hold on to winning trades and if you do it as a spread it just makes it a lot easier okay if you're holding on to Long calls and oh God you know seeing that those gyrations up and down can drive you nuts and can create enough anxiety to

the point where you're like get me out of this trade and it causes traders to sell too soon whereas the spread Smooths it out and even though I left money on the table by doing a spread to be frank I wouldn't have held it on I wouldn't have held on as long as I did had I just had the long call so in my experience in this situation I'm completely happy with what I did okay so what's the struggle here because trading is not always easy do I have trades that don't work of course but

the idea is that the trades that don't work you're losing a lot less money than you're making on the trades that do work so SO trading is always easy and a question I always like to ask everybody like who here you know you can raise your hand who has been struggling and growing their trading account consistently okay yeah everybody's gonna have a winning trade right everybody's gonna have a good day but the idea is over time are you creating an equity curve that in general is going from the lower left of your screen to the

upper right okay yeah you're gonna have some little draw downs and stuff like that but if this is January 1st and this is December 31st are you generally higher okay than there that's the whole point of trading nothing else matters it doesn't matter about the news the only matters is the size and shape of your Equity curve and once you realize that you start trading in a different way okay a lot of Traders I know they find a setup they like they Trade One stock they don't care about the hot meme stock of the day

they don't care about the news they've got their setup and they want to just make an equity curve that goes you know that does exactly what's happening there tough though right because it's easy to get caught up in the news we've got trade Wars we got a pandemic um you know there's all kinds of things happening in the news and the News thrives on this okay they've they've called you know the whole pandemic and covid the media loves that because everybody's glued to the screen wondering what's going to happen next it's like oh for the

media that's the best thing ever and it's easy to get sucked into that but as Traders we want to stay neutral we want to stay focused on the setups that are going to do what they're going to create an equity curve that goes from here to here that's it okay we don't get too caught up in the headlines or anything like that so the problem is is that if you're not aware of that okay and and and this happens to all of us I call it going into unconscious mode it's when our unconscious takes over

you know we get scared we get nervous we get angry and in that situation our unconscious takes over and the market then starts to take advantage of us okay what do we mean by that so this is what I call unconscious Trading in unconscious mode and a lot of people are doing this by the way this is why that if you're aware of this uh you can take the opposite side of this which is what the squeeze does and make a lot of money so people will see something going up maybe they see it in

the news they buy it and they get excited right they're chasing it and they have Euphoria and then as it starts to go against them they'll have some anxiety okay gosh as soon as it gets back up to the here I'll get out right and then it falls to where they got in and it's kind of denial right then it goes below where they got in now they're starting to get scared but they're not doing anything they're frozen right and then depression and then panic and then finally capitulation meaning they can't take the pain anymore

and so they get out we've all done this I've done this and if I forget my rules I'll do it again so that's why it's important to have a checklist it's important to have a setup because if you're following that this won't happen and then the cycle starts over again so one way to think of this is that your highest probability of success is to get in when other people are getting stopped out okay so if you've ever gotten stopped out on something and then it takes off if that's ever happened to you that's what

I'm talking about that stop out it was somebody else's perfect entry okay so a lot of times when we're looking at a squeeze a squeeze will form down here building up energy for the next move that's when you want to get in not here towards the end of the move right that's where you want to be taking profits so if you've ever caught yourself on the wrong side of that cycle I think you're gonna really like this tool and how it works so the biggest barrier to enjoying solid gains with options is bottom line timing

timing timing when you get the time and direction right you can do beautiful things with Leverage so the question to ask is what if you can see when the bigger moves are coming remember eighty percent of the time the markets are kind of just random chopping back and forth even in a strong uptrend right they're just kind of like uh we're up we're down we're up or down but if you're going to make money in options you need like a I call it the you know eight to ten bar move okay it's not a choppy

it's boom boom boom boom boom boom okay that's that's where you make your money and options there's a couple of reasons for that the short version is it's because of how options are priced if you guys have ever heard of Black Shoals options price in what's called an expected move and what happens if it makes you know if it just kind of going back and forth and it does an expected move what can happen is that you get the stock you buy an option and the stock does move up but it moves up within the

expected range of where it was already priced so if you've ever bought a stock and it went up but your option lost money that's just what happened to you meaning that yeah you were right the stock went up but it didn't go up fast enough to take over the premium Decay and the option okay that's the whole point of the squeeze is that it's identifying moments in time where the stock the odds of an explosive move up are a lot higher and that's where you make your money long options because otherwise you know you're you're

chopping back and forth and it's got to take that Theta Decay will kill you especially if you're buying an out of the money option The Squeeze is telling you hey the odds here of a greater than expected move a move that's above and beyond what the market makers priced in is about to happen and the market makers don't know this if they did they would price the options higher you know they would make it harder to make money in these situations but they don't take you know they don't this is not something that's calculated in

Black Shoals this is why it's so powerful all right so what if you could see this happening okay so my favorite trade then of course is going to be what's called a squeeze and for everything we just talked about we're trying to find where those greater than expected moves that are basically going to run over the market makers okay that that 80 of the time the Market's chopping around we're not interested in that okay we want to identify the 20 of the time when we're going to have that greater than expected move and we don't

want to guess at it we want to know with a reasonable certainty that the that it's going to happen okay that's what's called Edge and I've learned to basically if there's not a squeeze just stay away I can't emphasize enough how much staying out of the market if you don't have an edge is in it of itself an edge because what happens is a lot of times people they get bored and you know they just they do a trade and they lose some money and they do a trade they lose some money and they do

a trade and they lose some money and then they start to get frustrated right and they start to get frustrated they get distracted and then they miss the next setup because they're you know they're so busy digging themselves out of the hole they created because they were chasing the news or trading out of boredom they missed the next real setup there's a huge huge power in being calm and being able to stay out of the action until the setup you're looking for is there that's what a professional Trader does that's that's what somebody does when

they want to take control of their financial future and not screw around and piddle away their chips in the market on inferior setups they're designed to take away your money the market is designed to take away your money and if you're not aware of that welcome to Trading however if you have the patience to wait for an edge this is what my trading Mentor told me she beat it into me John most Traders are not born with a patient's Gene and if you do not develop a patient's Gene you will not make it okay so

if you have a setup like this this is defined it's going to force you to be patient it's going to save you from yourself that's how you make money doing this that's how you you know that's how you make Superior returns all right so here's the Google chart so how does this work why you know why is it important so if you're looking at Google here I mean you'll notice here that okay look there's a good move here right and you know there's a good move here and there's some good moves but if a lot

of times I mean it's just kind of trading back and forth you know if you buy calls here you're dead if you buy calls here you're dead you know anywhere in here so unless you're able to time like a five bar move and so what I when I was I was telling you earlier how you know when I first started I was always an aggressive Trader and to an extent I still am although I've mellowed out I would go back and say like gosh why what was happening to the stock what were the commonalities of

this big move okay why was I able to make a lot of money here what was happening versus you know what was happening over here when I lost my butt so if you look at this I mean look this is a nice uptrend right you should be able to make money in an uptrend but a lot of times you remember that that emotional cycle we looked at well a lot of times people get excited they buy here and then they get stopped out here right and then they get excited and they buy here and oh

they get you know whatever and they get frustrated okay and maybe they get stopped out and then it pops up and and the cycle repeats itself even in an uptrend right so how do we do this okay this is where the squeeze comes in handy so the squeeze is basically saying look the red dots and even right here the red dots are saying look there's a higher probability that we're going to have a focused concentrated move in the very near future you know like right now than at any other time so if you look at

this and say okay well and what I do when there's red dots you know I I'm fine starting to kind of build up a position I mean it's not it's not a secret which way the Market's going to go if it's in an uptrend and there's a squeeze the odds are incredibly high that that trend is going to continue okay the squeeze is not a reversal indicator it's a trend continuation indicator so here I can start buying calls in anticipation that it's going to trigger to the long side boom right and that's different than buying

calls like okay here I'm gonna buy calls here yeah that was a decent move but a move like that where you're gonna make a little bit of money is a lot different than a move like this I mean this was like a you know a hundred and fifty dollar move you kidding me you got options you just made a ton of cash okay and here's another one this one and this one was hard to hold on to I held on to this one for three and a half weeks and I kept adding to it and

adding to it and adding to it and I was down a lot I mean you know I was losing money on this trade because I got in too early frankly but I had so much confidence that when the energy here was released it was going to be the upside I didn't sweat it too much and I kept adding to it adding to it this turned into my biggest trade ever this is a five million dollar trade I'll we'll show you talk more about that later but that's how confident I was in the setup okay now

I didn't trade any of this you know there was no squeeze why after I traded Google like that everybody in the room's asking like oh my God when's our next Google trade I'm like when there's a set up all right and there's no setup no trade so that's so key it's it's easy to get married to the idea of one stock because you know we're gonna have high dopamine associated with that movement like we're gonna think back of Google very fondly after making that much money but then we make the mistake of imprinting that saying

okay what's the next I'm gonna buy Google again no no no no no it's the setup so if there's not a setup I'm not trading Google right I'm gonna go trade McDonald's or you know whoever has a setup that's so important it's the setup not the stock so the squeeze is the most versatile trading tool I've ever come across in my years of trading if I like to trade options because I love the leverage but you can trade the underlying stock just buy the stock you can trade Futures uh currency is it works on crypto

too a squeeze in Bitcoin or ethereum awesome those are great so not only does it pinpoint moments in time where you can look forward to a greater than expected move on any asset class okay Bitcoin bonds Tesla it's all the same okay it's a it's an expansion of volatility and a compression of volatility right that's it um but if you've already got a setup that's working for you the squeeze also is really really good at complementing other systems as well so in some it's my favorite I personally cannot look at a chart without the squeeze

if I do I feel like I'm trading naked and that's not not in a good way okay so here is here's the squeeze on Google this happens to be this is a one day chart and this is a free tool on thinkorswim okay and basically when you see the red dots it just means that the energy has compressed to the point where it cannot compress anymore okay by the time you see a squeeze it has already been choppy but now it's compressed to to so much that it's got to release that energy okay that's what

we're looking for and then it releases it and then it starts to build up energy again right wow and then it releases it again so you know even though I like trading Google I'm only going to trade it when the setup is there it's so so important so it it's great on the indexes as well so again same idea here's the squeeze right daily chart and by the way you can use this on any time frame I you know basically when you're in a squeeze the the signal tends to last eight to ten bars okay

so if you're doing a daily chart you're going to be in it for eight to ten days if you're doing an hourly chart eight to ten hours if you're doing a one minute chart eight to ten minutes personally I don't do any squeezes on any charts less than 30 minutes it's frankly not worth the time you know it's it's a lot of work to find a squeeze and wait and set it up and so you know a one minute squeeze you know maybe the S P's move three points it's not bad I'm not knocking it

but I personally would rather wait for a daily squeeze can can I catch 50 points can I catch a hundred points right so that's but also too it's it depends on everybody's lifestyle is different I got kids you know I got animals to feed I've got a wife that that wants me to talk to her so I can't you know back in my 20s I would sit there and Scout Futures and I would do that all the time it was great I can't do that anymore um I mean I can but I don't want to

I would rather do something like this but you the point is is you can adapt it to your own lifestyle you know whatever you know some people don't like to hold trades overnight it causes them anxiety so yeah maybe you want to do 30 minute charts I personally cannot sleep well unless I do have positions on like you know I want to look forward to Something in the morning so so that's what we got but the idea with this is that the red dots are saying hey it's building up and then when you see that

first Green Dot after the red dots that means the signal is live okay it's I call it firing okay this just fired long and at the moment in time that it fires along if the histogram is blue I.E above zero basically you're going to look for eight to ten bars of upside movement and if at that moment in time okay it was red you're going to look for eight to ten bars of downside movement so that's that's that's what we're looking at there okay so the other tools that I use in conjunction with this that

I like quite a bit are exponential moving averages I like the 8 21 34 55 and 89. uh they're just Fibonacci sequencing numbers and is it really important that you use those it's actually not uh if you want to use the 10 20 50 and 100 simple that's another combination that people use I use the exponential that's just what I was trained on exponentials react a little bit more quickly to what's happening recently um and that's just what I grew up on so that's what I use but it's okay to use you know the main

point is you got a series of moving averages right and um so what I'm looking for here is what are the moving averages doing the best trades in my opinion are when the moving averages are called what I call Stacked positive which what I mean by that is that the eight period moving average is on top of the 21 which is on top of the 34 which is on top of the 55 which is on top of the 89. that is an indisputable uptrend in this case and of course it's the opposite for a downtrend

right you can short as well um I'm I love shorting but I'm not going to short an uptrend because I don't you know you can also stick a fork in your eye and that's not necessarily the best use of your time so if it's a downtrend then I'll look at just the opposite and I'll short it but I'm not going to short an uptrend like sometimes people ask like well I got up here why didn't you short it why would I waste my time with that because you know look it's you could say you could

argue well it's right here it's too high why don't you short it because I don't want to get run over you know why why I get run over so this is the cleanest when you're starting out this is the cleanest and easiest way to go in and then if there's a squeeze you know buying pullbacks to the 21 period moving average boom now sometimes they're sloppy okay here are the moving averages are sloppy and that can happen but I'm fine with that as long as the eight period moving average crosses back up above the 21.

you can't really see it here but the idea is that hey the eight dipped down and now it's back up on top we have a squeeze you know we can see that the trend is higher if you're not sure if the trend is higher or not you just look at the next chart up okay so like a weekly chart and if on a weekly chart all the moving averages are stacked positive but the daily chart is sloppy guess what the weekly chart is saying we're in an uptrend the daily chart is most likely going to

resume the same direction as the weekly chart so again the easiest trade is like that when everything is stacked positive um but if if they're muddled like that the main thing I'm looking for is that the eight period moving average is crossing above the 21 and again in both of those instances if there's no squeeze I don't care like I don't care what the moving averages are doing here because there's no squeeze so first squeeze and then from there I'm looking at the moving average to say well gosh if there's a squeeze and the moving

averages are stacked positive the odds are like 90 percent that when the squeeze releases energy it's going to be the upside right that's why I'm looking at that um okay all right so we just talked about that but same idea just another example so you know you got the squeeze moving averages are stacked positive and buy the pullback you know pull back to the 21 in that case is perfect if it's a little sloppy once the see here this is the eight it's below the 21 below below below once it crosses above and there's a

squeeze that's actually a great long signal as well okay okay so when should we get in and that's you know what's the plan so first of all there's got to be a squeeze right I just there's no squeeze no trade and in this case this is based on a long trade and it would be about of course the opposite if it was a bearish trade meaning that there was a downtrend so first there's a squeeze the eight period moving average is on top of the 21 which is on top of the 34 which is on

top of the 55 which is on top of the 89 that means it's a no-brainer uptrend guess what there's a squeeze and in that situation the odds are 90 that the market is going to con whatever you're looking at is going to continue to move higher okay that's ideal situation and then price pulls back to the 21 period moving average okay that's that's my favorite entry so the point here is that if there's red dots and it hasn't fired yet but the moving averages are stacked positive and price is pulling back to the 21 I'm

in okay I'm anticipating that when it does release energy it'll be to the upside all right now if you want to be safer you can wait until the squeeze actually fires which means that you saw that Green Dot okay but I like to get a little early I'm fine sitting Through The Wiggles uh because the confidence I have in this tool is that high all right um so when the Green Dot appears that's awesome that means you're off and running and then um well here let's just look at a chart we can look at a

lot of words but charts are help a lot so this is kind of what I call the sloppy mix as long as the eight crosses back above the 21 and there's a squeeze and the weekly chart you know is it an uptrend boom again that's not the cleanest entry but that can happen a lot especially on you know some of the stocks that have been consolidating for a while the cleanest way to do it is this and if you're just new to this wait for the clean ones you get a squeeze obviously here the moving

averages are stacked positive you got the eight on top of the 21. here's the red dots my gosh let's buy that pullback to the 21 and then hold on for the ride that's what I mean by being patient if you can be patient for those setups you don't have to do a lot right you can do one or two trades like that a month and you're gonna be doing better than any other money manager out there by the way if you've got a you know as retail Traders we're not managing a billion dollar fund right

we can get way outside we're going to completely cream money managers with way outside returns because we're trading accounts where we have liquidity I mean I'm trading a seven figure account but that's way more liquidity available and then a billion dollars right if you got a billion dollars how many options are you gonna buy on Peloton right zero you can't buy and if you if you you can't buy enough to make a dent you know if you're gonna go out there and try to buy 20 000 call options good luck you know that there's there's

no liquidity there for that so that's the advantage The Edge we have is Traders as retail Traders okay so the squeeze the main point of the squeeze is it's telling us that the stock is about to have a bigger than normal move right we've already talked about that we've got that compression and volatility most people who lose money trading options simply are unaware of this okay if you're trading options on a stock that's doing normal movement that is already priced into the option that's why you buy an option and the stock kind of moves up

a little bit and you still lose money it's because that game is rigged right you got to know when it's going to have a greater than expected move which only happens 20 of the time and the squeeze pinpoints that otherwise you are trading a losing game like you're not going to make any money doing this so you got to understand how the markets work okay so again a couple more examples here's Microsoft you got the squeeze moving averages are stacked by the pullbacks you know again all by early and just hold on for the ride

and then you know boom we're off and running um Fizz you know same idea you know again we're not chasing it now there was a squeeze here right but you know the squee The Squeeze is over here when the squeeze is over um and this is another huge benefit of this is that if you see something you're like oh my God I got to get some of that and you're looking at it thinking it's going to go higher and you see that the squeeze is fired and has lost momentum the trade is over you actually

should be taking profits so if you don't have a position you shouldn't be doing anything that just means you missed it I miss moves all the time okay don't succumb to fomo which is the fear of missing out instead do Jomo which is the joy of missing out whoever buys right here all they're going to do is fail okay they're Pine at the end of the signal Jomo is the joy of missing out meaning that you recognized that this was the end of an opportunity not the start of a new one and you did not

get suckered into that okay so is this complicated uh so here's one of my students he's 10. all right my youngest son uh he likes to make money trading because he likes to buy uh Robux you know for the Roblox game and so when he needs a couple hundred bucks I give him 10 of their proceeds um it's fascinating because he comes in because he's you know he's so focused on one thing his win rate's very high because he's like oh I made my 200 bucks I'm out and that's it so he's looking at these

greater than expected moves to make a tiny amount of money like he doesn't even care that it might go up for four more days he's like I'm out uh it's it's kind of fascinating watching it I've actually learned a lot from this kind of observing his mindset as well on this okay so where do you find this for free and think or Swim you're just gonna go to ad study okay there's studies ad study and then you'll go down here to John Carter's studies and then TTM squeeze and there's not um it took us two

years to get this on to the platform and and we did this like 10 years ago and this is yeah they vet it they're going to look at you know look at what you do um so it's a it's a good you know it's it's a it's a good vote of approval uh when you get on there because they don't they don't take that lightly and that's on thinkorswim so you can add that for free which is which is great it's also on tastyworks and on trading View and on tradestation now the irony of all

this is that uh the the TTM squeeze is our absolutely most searched tool on Google and we don't have any tutorials really on it like there's all these great other guys out there who do videos on the TTM squeeze um you know 200 000 views they have way more views than we do and uh which is I I think is great I love it so a lot of people have recognized and they've adapted this tool and they're doing tutorials on it as well so I love it I think that's fantastic okay so long story short

uh this is a great tool and at some point you know I ask myself you know is there a way to kind of improve this because you know while I like the big trades they don't happen very much you know a lot of things have to come together you got to get that squeeze you got to get the moving averages and so a lot of times I'm like look if I can just crank out two and a half percent a week I'll sell some put credit spreads while I'm waiting for the next big trade to

set up that's great so I wanted to look and say you know is there a way that am I missing out you know am I missing out on trades here and that's that's one of the things I want to look at and so if we look at my first of all if we look at my uh this is my trading for 2020. so in 2020 I had three accounts I started off with ten thousand dollars in one account uh 260 000 in another account and almost 1.4 million dollars the ending balance um fifty four thousand

dollars here 1.7 million and then 17 million so of course this is the account where I took the Six Million Dollar Tesla trades and over the course of the year ended up being a 1200 return right fan is you know pretty awesome that's the kind of stuff that I like here's some screenshots of my screenshots of my uh portfolio so December 31st 2020 p l year to date 16.5 million of course I wire money out still you know buy more land things like that crypto and then for um tasty 1.4 million in profits so that

was 2020 and then 2021 also has been a fantastic year and you can see here the results the starting balance uh the ending balance and the percent and just it just fantastic trading so I love love love continuing to be patient for these setups and using the squeeze so and you can see here the the P L's and all that kind of fun stuff which is great okay so I love the squeeze obviously and then the question that just kind of came up just like you know 20 years ago when I was asking myself okay

I'm making money but not all the time what are the commonalities of the times that I made a lot of money and that's where the squeeze came from what happened after that is okay I can see here's a squeeze and there was a nice move and here's a squeeze and there was a nice move right but why why wasn't there a squeeze here you know why why wasn't there a squeeze here and so I thought you know what let's play around with the settings maybe there's something I'm missing here maybe there's you know while I

love the squeeze do I have the parameters set so tight that you know it limits the opportunities even though the opportunities that present themselves are amazing and so that kind of led me down a rabbit hole and you know when I looked at this stuff it's kind of like well you know here's an uptrend an uptrend here's all these moves um you know all these moves that were happening but they weren't being caught by The Squeeze right so here's this great down move like I said it doesn't you know whether the Market's going up or

down doesn't matter why was there no squeeze okay now there was a squeeze here but I don't count a one dot squeeze and the reason I don't count a one dot squeeze I'm not going to see that it's too fast so typically I like to see at least five dots because you know that gives it time to build up and stuff like that and so that was what I started noticing is like there's got to be some settings on the squeeze that would actually catch those moves and um get us all excited about it so

that was okay so what are the settings and then um you know not only are there settings that I'm missing but are there settings that could even give a heads up like you know I talked about that one dot or two dot red squeeze is there a setting on it that say Hey heads up you know this thing's about to turn into a a one dot or two dot squeeze and give me a heads up so so what we did is we played around and so here's the normal squeeze that we've been talking about right

there and there so I loosened up the settings a little bit and you can see that of course the these are the black dots they're gonna be there and there but what they do is they give more of a heads up so if it starts off as a black squeeze it can roll into a red squeeze that gives you more time to prepare to prepare for what's going to happen I'm like awesome and again you know what here we are it's a black squeeze that rolls into the red squeeze it gives us more time to

prepare but better yet sometimes these black squeezes happen by themselves and guess what those are good trades too okay this one you can see wasn't had a little bit of a pop maybe not as powerful as some of the Red Dot squeezes but this one was amazing I was like the biggest the biggest move on here was just the black dot squeeze and then here where there was no signal at all boom okay this little consolidation we were able to catch the last piece of that so I got super excited about this because basically it's

giving us now twice as many at bats and a heads up with the most powerful tool I've ever seen I'm super excited about this the only pain in it was when I back tested this I basically realized how much money I left on the table over the last 10 years by not having it I'd go back and look at Amazon and see all the signals that the black squeeze was on there that I didn't catch and like trading a 10 lot it would have made like something like two million dollars I was over 10 years

I was just like Ah that's painful that's okay though that's a good problem the the other squeeze works great it's just that this one was giving me twice as many at-bats and I was just like wow that'd have been amazing had I discovered that 10 years ago but now we have it so which is great okay so we kept playing around with this and then I wanted to play around with really tightening the parameters okay so we got the you know uh the black dots are a little looser so they can give us a heads

up as to the red squeeze and sometimes they'll only be the only squeeze that happens but what happens if we tightened it up um a little bit as well and this became the orange dot squeeze and so the orange dot squeeze here basically is the the tightest of the parameters so it'll start off with a black roll into red and if it's building up a lot of energy it'll go orange and what that simply means is that the compression you know if you think of the compression as like this on the black dot and then

it's a little tighter on the Red Dot on the orange dot wow it's super super tight compression and so by the time that pops you're going to get a really really really big move okay so that's exciting so all of a sudden it's like oh my gosh this is great so so the squeeze Pro now so you'll see it something like this so here's red dots that's the one we've been talking about and then here's you know the black dots they started off you know two two bars earlier than the red but man there's that

one dot orange and that's telling us that the compression is so tight the odds here of actually if even a bigger move than normal has actually increased so yeah we know that the red dots are going to give us a big move we know that the black dots are going to give us a you know heads up and also a decent move on their own but if there's an orange dot thrown in the mix we're actually looking at a even the odds of an even bigger than normal big mover there so that's that's what's so

cool about that so so here's uh now I've been talking a lot about you know daily charts and stuff like that so here's a daily chart one of my favorite trades is like if you get a daily chart and it could have a squeeze in it as well but drill down to a 30 minute I mean look at this there's a squeeze here pop here's a squeeze here pop another squeeze right and this squeeze is happening while a daily squeeze is happening that's like two for the price of one you're not only getting Power released

on the 30 minute chart but you're about to get power release on the daily chart so when those two fire off together think of it as like a firecracker and a bomb going off together and you can turn it into these fantastic fantastic moves and this was a day trade and we did this one um you know in one day turned into a half million dollar trade like in four hours I love that kind of stuff now in a stock like that I might wait a month for that opportunity but the point is is when

it happens I notice it and pounce on it I would rather do nothing all month except to wait for an opportunity like that when I'm fresh I'm rested you know I haven't had the crap beat out of me by the markets because I'm over trading and I'm emotional or anything like that you know you don't need a lot of good trades like out to have amazing returns and you can do these in small accounts too I mean this is obviously my bigger account and then in a small account it's like oh I'm gonna do a

put credit spread okay hey it was good for almost a thousand bucks you know in a ten thousand dollar account that's a great that's a ten percent return in two days you know annualized that's that's off the chart so it's okay if you don't have a big account you can do small account trades on this all right so how do these compare so this free squeeze is here and then our Pro squeeze is down here so the free squeeze here's the red dots amazing trade now if you have the pro squeeze on this one uh

what's nice about this is first of all you get the heads up right the red squeeze fires but look at this the black squee after the red squeeze fires the black squeeze fires too so you get a little extra juice there and you get to see it okay it's like before it's like oh we've already been in this trade for like five bars maybe we should get out no the black one just fired so now you got another five bars or so after that okay and in this particular case there was no signal okay but

the black squeeze caught it nailed it right that was a trade I wouldn't have taken before same thing here black squeeze right no regular squeeze okay right here there's a one dot red squeeze and the one dot red squeezes while good so one thing you would think is like okay is a 20 dot squeeze more powerful than a one dot squeeze believe it or not not really but I have found that about a five to eight dot squeeze is the best because that means that the stock is only pausing for a little bit it's building

up energy and it's ready to go the problem with the one dot squeeze is just you don't have time to react to it it's like you might you know you're going through the charts and you just didn't see it that day um and then 20 dots it can be a pain when it fires it's not any better than a Five Dot squeeze uh it just you know you just got to be a little bit more patient so so now all of a sudden with the squeegee Pro it's given me a much better read of the

markets it like I've got twice as much data twice as many at bats and not only am I able to read the free squeeze better um I've got more at bats that I would have missed on before which is great so you know again how I use the squeeze Pro is like okay here's the red dots right well the the black dot showed up first so that's I got a heads up like okay this is you know something's fixing to go down here same thing here a little bit of a heads up here a nice

heads up you know again nice heads up and then sometimes it's the only signal that's going to take place right so if we're looking at this to the downside because remember um this you know this happens to the downside too but the free squeeze really didn't capture this you know the one dot squeeze happened here the the black dots they started forming here while the stock was in consolidation right the momentum is below zero guess what in that situation it's a short boom um here there was a great move to the upside no regular squeeze

no free squeeze but we did get a little bit of a heads up that we had something here and then here we got the orange dots giving us a signal like hey something big is about to happen and certainly something big did happen so it's really really really really amazing and I know we talked a lot about the long side because of course you know the market has been trending higher it doesn't happen all the time but it's I love this for short trades too this was Netflix we had a beautiful squeeze here on the

195 five minute chart which is like a two hour chart a little bit bigger than that daily squeeze a beautiful beautiful 30 39 minute squeeze and you know this is good for a short-term trade uh quarter million dollars on the downside just trying to catch a quick move in Netflix because we all know the markets don't go you know they take the stairs up and the elevator down so yeah the market might go up and Trend up for two months and then have a three-day violent pullback but in that three-day pullback as long as you

have signals that can catch it and you understand how to read the signals oftentimes you can make more money on that three-day pullback than you did on that three-month uptrend that's how fast the markets go down and so I'm always on the lookout for potential short side setups okay so just to recap here orange red or black dots assembly simply means that the squeeze is forming and energy is building up okay black means that there's some moderate Energy building up red means there's wow there's some decent Energy building up and then orange means wow there's

a lot of energy building up okay but it's all energy it's all building up they're all tradable and then on the histogram which we've talked a little bit about but the histogram is either above or below zero okay so here's the zero line and if it's below zero and it's red it means that momentum is below zero and go and falling if it's yellow it means that it's below zero and accelerating up so believe it or not that's that's bullish if it's above zero in dark blue it just means that it's falling and if it's

light blue it's accelerating okay so you know again we'll look at a chart on that so here you can see light blue accelerating dark blue above zero decelerating okay red below zero accelerating to the downside and then yellow essentially means that it's okay it's about to turn and start heading higher again so all all those are are solid okay so this is great and as I was playing around with this and and I'm not a programmer I just have ideas and then Eric whose awesome programmer um I'll bounce the ideas off of him and simply

ask him is this possible uh to do [Music] so and Eric's a good sport about this because a lot of times I get really excited I'm like can we do all these different things and he's like ah yes let me take a look I was like awesome so the first thing I wanted because you know a lot of times people people would ask like okay how do I know if I you know I need to get in long or short so I was like okay look if you could create a tool where that after five

dots you know if momentum's above zero give me some buy signals on the chart or if momentum's below zero give me some sell signals and that'll help me time the trade and so these are called The Squeeze signals and they work great and so in this case here is the squeeze um you know again you want to look at especially the Red Arrows remember the black ones can be a little early but it's like okay that was going higher but boom you can see that we're decelerating here and Bam and then here we got the

squeeze and okay it's a Buy Signal it's a Buy Signal you know I like to see you know what I simply call concurrent buy signals meaning that both arrows are like that so same thing here you can see like okay here's the squeeze nice even though we've got some cell signals and you can see of course that turned into a huge huge huge signal um here's a squeeze there's the Buy Signal here's the squeeze there's the Buy Signal here's the squeeze there's the Buy Signal what I find is that that's helpful is that for people

are like look I just I don't want to think too much if there's a squeeze I want to know whether to go long or short and basically that's what that does so that's a that's a great great addition to that so so as I was looking at that I started thinking about okay I'd like some more improvements and he's like okay so I gave him a call I told him what I wanted he's like uh that might be too much but let me give it a shot and I'm like let's just take a look and

see so there's these bars called Early In and Out bars right and I wanted to improve these and I and I like to just let's just look at the charts on this so so the Early In and Out bars they do two main things okay so the early in part is basically saying hey there's a squeeze and I want to know if it's about to fire like you know we're five dots in is this about to fire or is this going to be like a 20 dot squeeze so the early indication when you see the

Green Dots here that means that the squeeze is about to fire meaning that we're about to get a Green Dot what I love about this is that this is saying like hey the train is about to leave the building so if you're not on it you're gonna miss it so I love this because sometimes you're watching it's like okay I'm just gonna keep watching but when you see this it's telling you get in because it's about to go so that's the first part of that and there's a second part of this that we'll get to

in a moment the second part of that is though how you manage the trade well let's cover it real quick and we'll come to another slide that talks about it so the first part is early in but the next part is is early out okay and the early out just means that you'll you'll notice here that if you see that the um momentum here well let me there's a better slide that'll show it but you can see here that the momentum is going up on the histogram and then it turns darker blue okay so the

Early In and Out bars basically they will the bars will turn before the momentum and that allows you to get out sooner all right we're gonna we've got some I've got some specific examples of that so that was the first part the next part is statistically okay and I know some people really like to dive into statistics as I do I just want to know like I want to be able to look at a chart and say like how well does the squeeze work on this stock on this time frame and I want the specifics

I don't want to eyeball it and Eric's like got it so um what the statistics tool does is literally say like okay here's Amazon and I'm going to go back and look at one year so whatever data you pull up the stats will also look at it and tell you how the squeeze is done okay and what you know in this case it was the Red Dot squeeze it'll tell you if it's a red dot squeeze or a black dot squeeze or an orange dot squeeze and it'll tell you that the average number of dots

or seven and that seven of those uh there was nine squeezes the average number of dots was seven seven of those fired long two fired short okay um the average post squeeze run was six bars with the longest being nine and most important the average move was five percent or a hundred and sixty seven dollars and then that was the biggest move so now I've got some hard data right I can say wow there were nine squeezes seven of them were long the average post squeeze move is five percent I don't know about you but

can you got you guys think you can make money trading options on a five percent move in Amazon which is a hundred and sixty seven dollars right exactly I mean that's that's that data is incredibly useful for planning so you can also do it of course on the indexes so it's like okay you know great um on the daily chart you know on the daily chart over the last 20 years there have been a hundred and twenty two squeezes you know 71 of them fired long 51 of them fired short okay um and then the

average move over the course of 20 years has been 4.64 cents or 1.6 percent that is some data that you can make some money with right that's how you plan that's not eyeballing it that's not like oh my God I wonder what's going to happen that is data okay that's why I love that stuff okay so then um if we go back and we look at these bars again the early in and out you can see again squeeze we got three arrows one that's representing the black dots one that's representing a Buy Signal on the

red dots and then another one that's representing a bicycle on orange dots in my experience when you get all three going you're typically going to get a nice pop and then here when it turns green remember the squeeze is about to fire and then here okay sell signal on the black dot sell signal on the Red Dot sell signal on the orange Dot and if you're not in you better get in okay when it turns green it's about to go boom right so it's a beautiful combination there and then of course you could go back

and look at the stat tool on the S P Futures and say gosh how often does this work what are the average moves so the other part of this because we've talked about getting into trades and really where you make money trading is on the exits okay you make money getting out of the trades so what I used to do the old way is that you know if the if the squeeze is fired long and remember when it's you know first you're going to get the light blue histogram and then when it rolled over and

turned dark blue for two bars that's when I would get out because that's basically like okay um you know it's over and you can there's different ways to get out you can use Fibonacci extensions um you know 821 EMA cross but generally I like to kind of get out as the move is petering out sometimes the 821 EMA cross can be pretty delayed right um well I'm a huge fan of extensions you know the one two seven two extension if you're familiar with Fibonacci extensions those are amazing but sometimes the Stock's gonna blow right through

it and it's like oh my God I left all this money on the table if I had done that with Tesla I would have left so much money on the table right but sometimes the one two seven two is perfect so so what do we do with this so here's why the second part of the early in and out that I like is that it helps get you out on time so here again perfect short signal sell signal cell signal squeeze we're short the S PS we're cruising along this thing's down 70 points right if

it's down 70 points you don't want to give back a lot so at Point number one is when I got out now you can see here that the histogram is still red saying the histogram is saying oh it's still going down right but notice here that you know we're actually turning and by the time if I would have followed my old rules meaning that okay when I get a change in color of the histogram after two bars I get out basically you know we went um you know that's about 20 points that's about 20 s

p points so with the Early In and Out tool that saved me a thousand dollars a contract by getting out at the right time okay no I'm not going to get out at the dead lows but I'm also not going to hold out for you know a move all the way back you know to where I got in and then here's a long signal right and we're in we're in we're in at Point number one the bars change colors and then at Point number two is where I would have gotten out the old way okay

basically I would have given up most of my profit in that situation because it came down pretty hard but the Early In and Out tool is saying hey Red Alert this thing has lost its Mojo and so I found this to be one of the best exit timing tools I've ever seen because you're getting out at the right time okay you again sometimes maybe the 1272 extension is the right time right but sometimes it's going to blow right through it the point is you never know you want to get out at the right time you

want to get out when the momentum is leaving the market and we don't know exactly when that's going to be getting it is easier getting out is harder this is the best tool I've found to time getting out gracefully with the maximum amount of profit that the market is willing to give you you're not getting out too early you're not getting out too late and and that's why I like it so much uh just another example here using this tool I get out here near the top the old way I would have gotten out here

okay and on this short getting out here old way I would have gotten out here now Granite this is about the same but this is this is a lot of pain and suffering to hold on to for a week and a half right a week and a half you want to get out and move on to the next opportunity so so long story short on this is that this with the Pro System where we've got more signals okay we've got more squeeze signals so we got more at-bats we've got um signals that help us to

clarify whether we should be long or short and we've got early in and early out warning signals you have a complete trading system you have a complete trading package and just you know a couple more examples here we got the squeeze you know boom We Got The Squeeze boom and you know you if you had gotten out at the 1272 extension here you would have left money on the table um you know so you can time it like okay how are we acting here how are we acting here and then the next squeeze sets up

and you know again it's just a complete complete trading system on Shopify and again if you trade stock that's fine buy the stock whatever the signal is if it's a long signal typically I'm either going to buy the stock okay or I'm gonna buy calls I'm obviously a huge fan of buying calls typically if I'm buying calls I'm just going to go in the money um or slightly at the money if I'm gonna go out the money I'm typically going to do a call Credit spread and I'm a big fan of put credit spreads you

know put credit spread you're not going to get that huge bang for your buck but it's a nice way to kind of offset any premium Decay so it's a good combination so a combination of long stock put credit spreads long calls for long plays and obviously the opposite there and again we talked a lot about long plays I love short setups so boom nice short setup here and this thing just absolutely rips it to the downside okay so the point is is that with a squeeze the downside moves aren't really a surprise a lot of

times downside moves take people off guard it's like oh my God where'd that come from if you had a system if you had a signal the signal would have told you that that was coming right um you know again just a couple of other examples just you know I want to buy stock okay great you buy the stock this is you know this is this is a five minute chart and you know it's a lot of money in a short amount of time uh Shopify a lot of money in a short amount of time and

a lot of times people ask can you do this on the indexes yeah you can do it on the queues you can do it on Futures in this case I bought 2 000 shares of the queues but as you guys know you could have bought 20 in the money call options taking up a lot less capital and made about the same amount of money so that's why I'm a huge fan of options um this is one on Amazon same thing here where you've got a squeeze looks great and this thing just Rockets higher and turns

into a 400 000 trade and then of course Google uh this was just a pretty amazing amazing amazing trade here and chop chop chop chop chop it's building up energy and then look at what happens when it releases that energy okay it was pretty crazy on this particular trade uh this was my biggest trade ever I made five million dollars on this trade over two accounts so in tastyworks um it was about eight hundred thousand dollars that I made on the Google trade and then in my thinkorswim account it was a little over four million

dollars that I made and so net net just a hair over five million dollars on one trade um that's what I'm talking about you know you can sit there and chip away and chip away and chip away and over trade and make a little bit here and there and that can be emotionally exhausting and frustrating or be patient understand what a great setup looks like and then learn to identify that setup and when I saw this in Google uh you know I was just like we're going this is this is going to be a big

trade I didn't know exactly when it was gonna when it was gonna go but I was super confident sitting through it losing money while waiting for it to go and you know the patient's obviously paid off but I have that's how much confidence I have in the signal if I was doing that trade and I had a and I wasn't using a system right I would have gotten shaken out of that but when you've got a system that has proven itself over and over again it has the statistics to back it up your confidence level

increases and when your confidence level increases you're able to hold on to the trade longer okay you're able to be pickier and you're able to just simply make a living trading which is tough for a lot of people a lot of people just the psychology gets in the way and I found at the end of the day we want to save ourselves from ourselves so I learned this the hard way at first you're trading you're like oh I got to make some money but you really got to get your head dialed on correctly or it's

gonna screw with you and what I've found is that if you've got the right setup all you got to do is release your anxieties and follow the pretty colors you know instead of instead of coming into the market with an opinion oh this is gonna happen or this is gonna happen because I saw this news thing what's the setup you know is there a squeeze if there's not a squeeze why are you looking at it who cares look for The Squeeze okay or the moving average is stacked right how long has it been a squeeze

do I buy arrows you know what are the early in and out indicators telling me what are the what did the statistics say is the average length of a move that this is going to have okay that's data that can make you a lot of money okay versus like oh my God I saw this you know on Wall Street bets maybe that'll work and maybe it won't um but this is stuff that works consistently you know without all the hype and all that kind of stuff so save yourself from yourself um so the key to

combat anxiety and the psychology that you know really can implode a lot of Traders accounts is to have a specific system or strategy with clearly defined entry points but more importantly clearly defined exit points you know entries are a dime a dozen as the saying goes but exits are where you make your money these entries have been honed in over time where they're the highest probability entries I've found once you're in the trade though you still got to learn how to manage it you don't want to freak out you don't want to get out too

soon let the system tell you take your emotions out of it go for a walk drink some water right put the mouse down and you know I I always joke it's like you know a lot of people will ask me like ah God how do I get rid of this anxiety you don't you just learn to live with it you know you learn to be comfortable being uncomfortable don't let your emotions flow down your mouse arm and and take action okay your emotions are your enemy in this situation you can observe them learn to meditate

you know let them go follow the system and once you start following the system do it small at first one last and once you start to follow the system and have it override your emotions and be like wow this is so much easier and you start to trust it and then you start to ignore your emotions you know your emotions are basically your ego screaming at you you know wait wait wait that's not going to help it's not gonna help um I'm a huge fan of Mark Douglas he's got a book called trading in the

zone which I highly recommend I love this quote it's very painful consistent losers do almost everything to avoid accepting the reality that no matter how good a trade looks it could lose this this this quote Cuts deep okay look I've never put on a trade thinking it's going to lose every trade I put on I think it's going to win but not every trade works so 75 success rate that means 25 percent of the trades aren't going to work what does that mean that means you got to really dial in on your position sizing that

means that you don't bet the farm on every trade because you could win 19 trades in a row and then lose it all on the 20th trade you know there are times when I put on a trade the setup's perfect but the next day the stock is downgraded the next day the FTC is investigating it that's going to happen right it's a probabilities game so this quote is gold understand that you can lose and you take care of that by position sizing okay so you know don't risk it all in the next trade but if

you're an aggressive Trader can you risk five percent yeah yeah you can if you're a conservative Trader can you risk one percent yeah you can don't bet at all don't don't do that don't be that guy or gal