this is probably the first time your your members are going to hear about this that is a bull flag I'm the only person probably identifies a bull flag using stochastics and it it is right and I want to show you that so welcome with sing Anthony with John Kisco good to have him back of course in the podcast he's always giving value sharing his trades of course trading every day capping the market so John welc back on the podcast good to have you here look forward to see what we take this today what we talk
about awesome at the end it's good to be back I get so much great feedback from the people come from your uh videos and and podcast it's just an amazing thing so a lot of the members here at day train radio are members of your spot so I just appreciate the opportunity to talk to you to your subscribers and I was just talking to before and we said you know this is some really good stuff that uh when it comes down to what I teach and you know and just to introduce myself I'm John Kisco
I am the host of day trading radio and it's a it's actually a show in the US markets um but I cover of course right now it's 11:00 at night I actually trade most into the evening too so we have a good a good overnight or an overseas Market too and I've been a Trader for since um 1996 when I quit my job at the post office you have that very famous video Postman quits job becomes day trader it was one of your your earlier videos I love that seeing that come across my feed and
that's when I started really learning about trading um started the show day training radio and started teaching traded in 2007 after you know 20 something no 20 well I'm going on 27 years now of trading and um and more of the education of it and showing people the path I take uh which is very hard and what I do every day and what I've been doing for years and years and years and especially actually as people start to realize how I trade and and they want to accept or want to um adapt some of the
concepts I how I trade and what I was saying that Traders biggest issue is not trading it's being not having the discipline not having the discipline to take trades and having the patience to wait for trades and what I say by that is uh you know I develop a business plan and that's what I want to go over I actually I worked on this whole thing over the last you know over the last week as I knew I was coming on with you and I said you know what I want to break this down so
simple and just give out my three setups that I do and it's a business plan that keeps you in a trade the hardest thing about trading is being in front of the computer at the right time for the right trade and what is that trade I mean there's so many different branches we could go you I know you've been trading and you trade and there's so many different styles of trading you have uh indicators people love Fibonacci people like Ballinger bands people like everything you know everyone has a different thing I have developed you know
I trade stochastic oscillator uh Divergence trading uh but I've also added a lot of things over the years that combine that and for me and my personality type I do not want to be an over Trader um so I've developed a system to kind of keep me in knowing when to exactly get in the trade when they get out of trade there's no questions nothing anything and that for me works because discipline is the major f a major issue with Traders discipline and patience most Traders are going to be over Traders you're going to especially
fast trading day trading you know there's so much I'd love to talk to you about you know I want to answer all the questions tell me a bit more about why do you think Traders should have a business plan because people think you can just go in the market catch setups and trade and you'll be good but why do you need to have a business plan around it you said it right there people think they could go into the markets and just trade and take money right you know you heard the stats 90 95% of
day Traders are don't don't make it you know why 95% of the people don't make the professional sports teams if you're going to be great at something if you're going to be great at trading not any Joe Blow is going to come in into the market and just extract money from the market it's just like anybody can go into a casino and try to make money out of a casino you have to go in there with a plan you have to be a card counter or something like that take the best games possible Game Theory
you know wait for those opportunities and that requires so much discipline that requires so much patience to be able to fit yourself into a business plan that so A business plan for me is a successful model of training that I could I could look at the plan and say is this is this is my product I have to find this product just kind of being a business you know making money to for me to make money and I'm a scalper I look for two setups in the market and it has to set up exactly like
this because this is in my business plan and if I take the TR uh setup I look at what the next step is what's in the business plan it says well you move your stop up this amount place your stop here let it run watch the stochastic 63 you know I have things that I'll explain to you in a second but it's very important to stay within that bar barrier because if you're just a loose canon in the markets and getting back to why do you need anybody could come into the market and make money
you can't you will be eaten up and chew chewed up and spit out because the market the financial markets are the biggest in industry in the world and the Joe Blow going in is like being a basketball player and you want to make it to be the pros you want to make money at something then you better be good at it and the market will take you know it know where to go the algorithms the things it's not as easy as you think oh I have to get in you know a lot of people say
I just have to get in and get out you know follow the trend and stuff but you know I I've done this a long time and now I've come down to a point where I realize less is more you know wait for the opportunities be there in front of the opportunities another important thing is is if you you know to be a a Trader full-time Trader which I kind of am I'm a full-time Trader it's very hard to do because you have to be in front of the computer you know pretty much uh most of
the day I mean there's different type of Traders we have swing Traders we have you know uh day Traders we have scalpers but for like a scalper looking for certain setups you have to be there for the setup to be and to be able to take the setup when you see it and get out when you're not in front of that time to put the time and effort in being a professional all right being a professional professional is being successful to be to get up there and do that and be be focused enough to take
the setups don't Goof Off don't overtrade don't gamble all these different things add add to the formula then you become successful over time after you go through that learning how to so that's what a business plan A business plan does for me it identifies everything keeps you in a it's a proven way that something works and if you follow the business plan it will work if you go outside the business plan it won't work if you start to gamble I know the setups that work I going to show you three setups today that if you
took it they're exact setups what's great about it at over the years you I want to share some stuff with you whenever you want to do that but over the years I have developed you know I use stochastics I have four bands of stochastics I called my quad rotation and it's my own indicator that I developed and uh the results are just amazing and when I combine that with a stochastic Divergence it you know when we go back and I show you what it looks like you'll see it just works every time and if you
found something that worked every time and it's hard to say that like there's no hole of Grail on the market but the right conditions and everything and lined up the way you see it here it'll work 95% of the time maybe you might get hit with news or something like that if you had a setup wouldn't you wait for that setup or would you you knew something a certain setup it had to be perfect combination stochastics were rotating down here prices above this moving average uh something else is set up and everything converges and the
Confluence is perfect and you know every time that happened it was a 95% chance it would work would you just wait for that setup and be 95% perfect or would you say that only works maybe it works three times out of the three times out of the day and I'm sitting in the front of the computer for eight hours and I'm going to take three trades well that's that's the thing and people want to have that kind of setup that works all the time every five minutes to come back and come back and take it
and make money it will be hard to wait for 3 or four or 5 hours is like being there and doing nothing cuz then you feel you're losing your time so for most people that's really hard to do very hard to do so the more time you're in the market the market has a better chance of taking you out you know it's it's that also like so a lot of the techniques and a lot of the the situ you know the trade setups I call them the trade setups that we do I apply those on
daily charts for long-term trades I apply them on my 1 minute 5 minute time frames for my scalps some people use it on their 10sec chart and that really kind of and that's pretty good you know and I said you know let me let me start looking at this 10-second chart and I said all right I'm checking out and then I'm you you know then I find that things work on the tick chart and things are working on different type of charts and stuff and you know it depends on your time frame it all adds
into what I'm going to show you I mean I have something really kind of special for you you know cuz I made These Blueprints and I'll get I'll send them to you and you could actually give them to whoever wants them and stuff a little PowerPoint yeah we'll put them link below if you can check it out and tap there to access them uh yeah got me through it show me the service and show me what you have to share with people CH see that all right remember we just we're just talking about you have
to really you have to really determine what type of Trader you are you know and applying these different techniques could work on each one of these things it's just a different time frame today what I specialize in is trying to get people to make daily income in the markets and when I say daily income it's going to a job each morning sitting in front of the computer identifying setups taking the trades and making and I be realistic on things you know trading the uh Mees or S&P futures contracts uh just to kind of give you
a little background on exactly what I trade I I trade Futures and um and and I use I I trade them on a a shorter time frame one you know I scalp them during the day and what I'm looking for and I'm usually trading the mees which are the micro contracts instead of the the the regular es mini uh the mini es um which is a little bit heavier and kind of you know it goes against you fast you could be heard a lot so the micros are really good to actually start trading with especially
for some of the newer Traders are just starting out um anyway uh we're going to be talking about scalping today scalping but day trading and scalping kind of the same thing swing trading and position trading everyone knows the stuff like that um so remember we were talking we're talking about business plan um this is my business plan you know basically I I live by a business plan so sometimes I'm so scattered I have a lot of stuff in my head about trading and stuff but I go all over the place and I'm always looking for
things so it's very important to me that I Define everything for me it's my personality type just other people have a good a different personality type and they're able to handle things for me I got to really put everything in a flowchart that's what I did for you tonight you know today I actually made a flowchart which makes it EAS easy for people to get into a trade and what this is going to do it's going to prevent overtrading and it's going to prevent losing basically you know all right so let's jump on here Order
of course this is you know I guess you guys could pause the video and kind of write this stuff down order criteria profit exit criteria all these things need to be figured out as you're trading you can't be just going into the markets and not knowing what's going on so all these things should be defined before you get into a trade your how you going to get into a trade what are you looking for how you going to get out of a trade automatic stop criteria do you have one where's the stop go what's the
risk management of the method and what I mean by that that could be a little bit complex but you know what do we want to add shares take take shares off how and when do we want to increase the position F size how to set up your charts tools of trade balance I don't worry about the balance thing that's from an old uh thing here um and then these are my rules and this is again everything about this is an important thing I know this works this is what I do every day you know so
I'm very comfortable of teaching this I am proud to teach this I I I teach this because I enjoy like you do travel and freedom and I I feel like people you get stuck in the grind you know I mean you might you have dreams you want to do and not many people achieve those dreams and this is kind of a path that you could achieve those dreams if you have discipline and pay you can make something out of yourself as a Trader it has to but you have to be the best you have to
be the best you could be and to be the best you have to have be organized and these are the setups I want to show you these setups today very easy to say I'm not going to I know we have limited time and a lot of people don't know about the stochastics and stuff I probably discussed them on the other videos you have so I did I've done like four videos we so I'd recommend other people to look up the rest of the videos yeah we l them Below in the show not people can check
them out and go through those we do a lot of stuff in depth and you went through all the settings and stuff so that's been very powerful we went through a lot in those videos and it's all based off the same thing I mean I'm truly um you know really love this style of trading it's it is a very successful it's the only way to be successful you know you know and I I I sound crazy saying that but it you it comes down to having a great methodology doesn't do anything unless you have a
a Trader and the trader is the weakest link in trading you know you're the one that's going to be and I'm going to show you something I'm not going to waste any more time so anyway some some of these things you might not know the super signal is emerger of the Quad rotation now quad rotation something I um I designed using four stochastic bands and each stochastic band I'm want to try to you see these four bands down here these are my stochastic bands now they're all based on different times they're fast stochastic 93 14344
and 6010 now I'm not afraid of giving this stuff out you people say man this stuff works so good why are you why are you getting it out there because you know what most people are going to fail because they don't have the discipline and patience and it's just that way it's like I'm not worried you know you have to you have to be the best person you could be as a Trader you know you got to if anything you do you got to be the best you could be and to do that you have
to wait for this setup now here's our four stochastic banss you got to learn the system you got to abide by it take the signals and get the hell out and use this as a a cash machine so these are my quad rotations and I'm watching the comment as I I call this like looking at an echo cardiogram of the markets stochastics developed by George Lane in the 1950s and again this is some stuff that I've already discussed with most of the people I want to kind of drump to that thing here we going to
jump past this um George Lane here in 19 50s it's a oscillator that measures momentum so it's a momentum indicator shows the location of the close relative to the previous closes and that's part of the formula and not to get I don't want to blow anybody's mind here uh but you could read up on stochastics and how it's the how the formula works but you're looking back at a certain amount of periods in your candles so I'm going to go back to our chart here we're looking at the time so the stochastics have go from
a range from zero to 100 and that really represents how this candle Clos on a range of 0 to 100 so if the candle is so big you know it's that big the top would be 100% of the candle the bottle be and there's a formula that over time you're you're learning how this candle is closing uh relationship with even the price so you could actually start to see the momentum the closing is moving higher even though the price is going down so that's the key to divergences is one than you know looking at Price
action versus the momentum internal you now what's great about the stochastic it's measuring the internal turn over price over a period of time what you can see on the outside on the chart because the price is still going down but because of the moving average this is represents it's starting to turn back up we're going to get a turn up and that lags and that always adds that always makes a a nice move so right there is our key number one setup it's called the stochastic price Divergence and that's very important in our trading now
like I said some of these things don't happen all the time so what if you had to wait here this is 2 in the morning which is great about this is people in Europe could trade this stuff now we've talked about this before but the concept here is momentum is going to go up and then if you have a rocket and you have the engine out of the rocket and it dies all right it shuts off you could easily measure that shut off it goes straight up and then it dies but the mark the rocket
that it's pushing won't just die it'll have momentum and it'll continue to move up and that's the concept of divergences Divergence is well the momentum will dry up though the price will go higher that's a sell-side Divergence knowing that we're going to eventually roll over we measured that the the and here's a good example of it here it is you see this right here here's your stochastics here's your price St you have a stoas stochastics are low stock stocks High go back over here I'm looking up here let's take a look we just found one
there here this one right here this like this kind of a high and there's a double top right there higher and a lower high that's a Divergence again sometimes these things could be a little overwhelming for someone who doesn't know the concept of Divergence trading but that's um that's kind of the basic of that setup this is what a Divergence looks like let's just go over that Divergence a little bit more because it could be found on any time frame I like to use it on the five minute and the one minute time frame for
scalping but if you find this on the daily chart it's a great like if I find Apple in a Divergence it is it's one of the best setups ever it's like um and again you could see the the low the higher low the low the lower low this you know the lower price but the momentum has shifted soon the price soon the price will shift that's our go-to trade now I know it's again here you have a situation where you're going through the day and you have three setups are you able to get by and
just wait for these setups and when do you get out so I wanted to do this for you um again just i i figur people are going to pause the video and and maybe take screenshots of it or I could send you the information or they could get it at the site this is Again part of a business plan is knowing exactly how everything is setting up now this is my old way I used to do this I just was to write write it out but I said you know it might be better if we
put it into a a flowchart it might be easier for Traders because I still find Traders having a hard time following a business plan when it's written out for you you know that's the that's the big thing thing all right so there's important things here that we could go into but I want to get to get a little further moving here just to give you examples of divergences all right now this Divergence is just one part of the system and the system is and here again this is we're going to jump right into this these
are my new flow charts I I I I just put together this is remember earlier we talked about the quad rotation and then we talked about the Divergence so kind of didn't put them together when I was talking about it but the first thing we were talking about is these these um rotations of the Quad rotation and when all each one of these bands get oversold under 20 at the same time that is what we call a quad rotation this is probably the first time your your members are going to hear about this all right
this is something I I do I I teach this is exclusive to you know my teaching um and this is very important in part of the timing and what this represents is multiple time frames converging the one so remember the the stochastics are measuring our candles look back period so this is nine candles this is 14 uh candles I don't have it labeled This is 40 candles and this is 60 candles all right so it takes a longer time for the big ship to move this is the bigger Channel I've done the calculations that put
me at the 6010 area here the 6010 stochastic represent present the 5 minute time frame when I used the 93 stochastics which your default um it's your default stochastics on the 5 minute so instead of having two charts or anything and you could lay these over but this is an excellent way of actually knowing when all your time frames are going to be lined up and when you have the time frames lined up there's a better chance you're going to get the biggest move because what I am searching for in the markets is my job
and you know I'm looking for pullbacks and positive markets like a good uptrend and a pullback and I'm looking for PIV what we call pivots pivots are uh Market coming down and then the market moving up and the pivot is the area where it changes Direction and this could pivots could be very small pivots little Flags it could be larger pivots um but we identify these pivots by just putting our basic trend lines in like this and it's very easy when I'm trading and I'm this is what I'm doing you're actually following me um you're
f me trading right now cuz what I'm doing during the day is marking this out for you I'm I'm saying all right we got a quad rotation here you know take your short and put your stop right at the highs and that's that would be our short because we're only taking that setup we get down to a quad rotation here this is one of our setups that we look for a bounce and we look for a you know what we call a super signal that develops all this so if we have a quad rotation and
then we had any of a Divergence that is considered our Holy Grail setup so that is just a simple simple thing that takes all the emotion out of trading now now I've have eliminated emotion in the trading I've given us our best setup ever because of the hours and hours of research that Divergence right there combined with the quad rotation here tells me that there's this going to usually there going to be a bottom here now that's a double bottom higher stochastic rotation right there that's our low your stop goes right under the the low
goes one tick first of all this technique this technique of trading here is so good because your the risk is automatically defined and that's another thing that's going to kill Traders Traders don't put their stops in right away you you automatically you're jumping you're jumping in and you're letting a g you're gambling if you're gambling you might as well go to the casino if you're going to trade the market you want to make something out of it and and live a life like etan lives multiple countries you got to step up you got to step
up to the plate and you got to only take the Divergence setups and I keep on saying that like you know I am like you know I'm that comfortable and confident with this combination right here these things work now that's just part one of the sit situation the part two is getting out of the trade all right and another thing that's hard for Traders to do and this is another mental thing and you have to get through this is a lot of traders buy when it feels good to buy you have to buy when if
you have to trust the system you have to trust the pullback you have to say all right I'm on the lower part of the trend line I have I have a drop here but I have a pop here and I have a higher low and a lower low I need to buy into that weakness all right when I buy into that weakness that's the only way you're going to get the best price ever is buying the weakness buying the fear the only way you're going to sell um the best price is selling the greed and
selling the Euphoria and that's very hard for a human to do for me at least you know you want to you want to go but this is a business again we have to come back to saying the only way you're going to be successful is Define this as a business and take these trades off don't gamble don't let it come back on you so how do we know when we get out of here all right that's that's the that's probably the the easy part is actually waiting for this you know this is the easy part
now I'll go through the day and say this is 2: in the morning but just pretend that's good for actually I like the overnight trade now and even though I live in New York i s find myself getting up sometimes or staying up real late because I find that you know the algorithms and stuff don't really affect we don't have the news but we do get the setups I mean these are still setting setting up um and this is excellent for prop Traders too we teach a lot of prop trading and I I have everyone
start off with the propit counts with this because you can qualify easy if you you know and it's a good testing ground you don't you know you test it with the prop you said take only the setups and you'll find out you'll start qualifying on these things you you abide by the rules the um the same thing on the downside here look look at this double top the lower stochastic normally you know when we say double top normally if you get a high you get a higher high or the similar highs when you get a
high like this and a lower high on the stochastic remember what this is this is the rocket going up this is the engine shutting down and engine shuts down then the rocket starts to roll over so you first of all Divergence is number one indicator out there very similar to the macd very similar to some other ones they all gives good Divergence indicators I know more about stochastics than anything uh so I'm I'm you know I I that's the system I I teach um now with adding the quad rotation to it so whenever we have
a downward Channel we look for our quad rotation now 9343 44 there's so much here at h i you know I I want to come back and do a webinar for you because there is there's a trade here is called an embedded stochastic level here this this embedded stochastic whenever this is up here above 90 all right and you get a rotation on this on the 93 that is and it holds the 2050 period moving average that is a bull flag I'm the only person probably identifies is a bull flag using stochastics and it it
is right and I want to show you that here in a second so we just looked at I I'll take a breath I don't know if you have any questions or anything I mean this is this is really cool there's a lot of in to this um I know in the past when we did videos together a lot of people comment about the fact that oh your charge like a Christmas tree it's like too many indicators too many things I think over time you kind of got to a point where you understand these things and
you really know how they work and then you can read them easily for beginner is that too much stuff in the chart did you feel like they could deal with it then kind of learn that way anyway what I do I know a lot of you know a lot of Traders are new Traders they come back or they find find find me um through you you know just being out there I've been a Trader for a long time and success you know is is pretty good when things work and it becomes very logical you know
it becomes very very logical um there's a lot of indicators on here you know I guess I love this I love the different colors this is the way I've always had my charts I you know I have the template for you know this if anybody wants the template just get in touch with me uh I have the template for this for Ninja Trader too CU I use a ninja Trader platform so you know this is my standard go-to indicators I'll go over real fast I have the 20 period moving average EMA the 50 EMA the
200 EMA the main pivots which I don't really pay that much attention to but I do have them on there these orange lines are my own support and resistance lines that go out for day so if I find an important level I'll draw an orange line and I'll extend it so it means if we ever come down to it I'll I'll know it's there for something and then our stochastics um oh then there's the vwap which is very important the vwap is one of the best indicators you could have and then I have our stochastics
now stochastics are formed with two lines a k a percentage dline and percentage Kline and not to go into the again feel free to you know I love the teach you more of this but we won't spend too much time on what the k and D line is but I'm using the D line here and the dline is the signal line um and the signal line is all you know again this has been worked on for years on getting the the right uh rotations and how everything kind of orbits together and when they all line
up together like this you get an explosive move and that's just with that that's just a quad rotation now you add a Divergence to this like I said I was that's what I was just doing my anatomy of a trade uh this is for actually let me go back so this is what I call the Holy Grail remember we were talking about a quad rotation and a Divergence that's what I call a quad Divergence the best setup out there you know 90 when you're talk about that 95 percenter if I was teaching my grandkids or
my kids or I don't have grandkids or anything if I could teach my kids when they get old enough to trade I would just say you know I I teach them this setup and have them trade this setup and then there's a couple other setups you do but more time you're in the market more time if this worked like we just discussed earlier if I gave you a setup it worked 95% of the time it worked so good why wouldn't you wait for it it's so hard to not uh you know and if that is
true this if this is how we get to that I don't care how many lines you put on that this is pretty organized I mean I think this is pretty organized the color scheme is good I think it's a very pretty chart the um this is it so this is our Buy Signal um this is the super signal all right Buy Signal you enter stock when and this is the first I just made these for you so um it might be a spelling thereor a two in there but price has a pullback in an organized
fashion all right so we're usually in an uptrend I like uh a pullback in organized fashion means there's an identifiable Channel everything channels out Forex channels out stocks Channel out you know very you get to identify a channel it's just basically the range that you're coming down in and when you start to see that you try to identify it's what I call the one 123 pattern because you need three pivots one two three and then you could if you have two on one side you could draw a straight line and Co down and you have
one on top you could put that and you'll have a parallel Channel just by three points and then you trade four five and six now four five and six ended up being the Divergence and it's quad rotation that's considered a super signal and uh again here first stage is all four stochastic bands drop under the 20 line which is all four of these drop under the 20 then what happens is the second stage the price bounces just a little it goes up up here could be a little bit higher could be a little bit higher
but it has to Just Bounce a little and the stochastics on the 93 bounced a little and then stage three as the price then drops back equal or lower than the last the first stage price the 93 stochastics turns up above the 20 line so here you had that little bounce and then you had the rotation back down and the stochastics turned up above the 20 line so that is your Divergence combined with a quad rotation meaning that are bigger time frames in your favor so this is not only going to give you a good
trade it's going to give you a big long trade so when we have that set up I know to take a bigger amount of uh shares if I'm taking um if I'm taking five mes 10 Mees I'll maybe switch over to the es and Tak a couple es trades because work that's where you're going to make your money and you know you know these markets you get two candles you get 10 points these days in some of the but this is you have to wait for that you always take it with a visual confirmation the
turn back up of the 93 stochastic activating the Divergence signal so right when you see that turn back up is when you take that trade you take that trade right when you see that turn back up and then um you place your stop one to two ticks under the pattern low candle so when you have that low and you get to turn back up you put a a stop right under that low that's the best stop you ever get on any setup at the diver what's great about is the Divergence fails you should have a
stop there it won't work and it barely fails so it's you're good in either way so that that's the whole that that is a like a key setup right there just a key setup and then all right well are we going to wait for that there's remember I was saying before I have the quad rotation identifying Flags now and this is just a textbook thing so um B on a flag a flag is a continuation pattern something I would trade if the Market's trending nice and um you get a nice push I got start Buy
Signal enter one um enter stock I would say Futures price has an aggressive aggressively moves up off the 20 EMA with a steeper than average move so we we this is what we call a flag pole uh and it just pulls off of a 20 period moving average and then you're looking at the stoas Plastics here all of them are kind of up here they're all and we what happens is the 610 is the one of the most important ones and I could do a whole webinar on on the 6010 but the 6010 has to
be above 80 and what happens is that 6010 is the five minute time frame so if that's embedded all right that's what we call embedded that means the the trend is strong and this pulls back to the 20 line all right so what happens and it stays up above 80 as the 993 pulls back to the 20 and the price holds the 20 that is called a 2020 bull flag 2020 bull flag again very simple the it works all the time it's just a matter of putting the pieces together and taking it wait for the
push up here the pull back to the 20 stochastics rotate down to the 20 the 6010 holds above 80 the the 2020 comes to of the price above the 20 and the 93 hit in 20 you buy when the 93 hits the 20 the 93 is the stochastic when it hits the 20 you're buying usually that's the weakest point before it starts turning back up now this doesn't seem like a big trade here you might say oh I'm looking for a lot more and stuff well this works on different time frames different everything this is
the concept this is the trade and this will probably give you three or four or five points 93 has dropped back down towards the 20 line the 6010 stochastic hes above 85 preferably 90 the higher this 60 period is the bigger the bigger is the stronger the trend all right so that's the bull flag so that's two setups right there two setups now you know say we we get a A system that gives you really good results like maybe 80 75 80% of those time trades are really good trades but there's still 25 30% you
know losers but you would still think that's pretty good and um if we look at this next chart here I figured out when a setup gets weak um and we're able to see that and we could eliminate 50% of the losers by applying a rule and again this works off the stochastics too and I've done all the testing on this so now so if you had like um you know seven uh I always say seven out of 10 trades were successful three were losses you could eliminate two of those I bet by applying this rule
all right and this rule is and again this is based off of it a super signal entry and when do you get out of a trade now this is should be standard this is the this is where you're going to be successful or you're not going to be successful because success is or you know being having a business plan means you have to have an entry and you have to have an exit plan and if you're not if you're at one point you could get in at this point you're like well I'm going to gamble
and see how far it goes oh it's coming back down that's just not that's not being proactive in your account building you know you want to do that perfect practice I tell you I don't know if I ever told you this I remember my baseball coach would yell everyone he say we're not pract we're not practicing good it's per you know it's not practice makes perfect he goes it's perfect practice makes perfect and I said wow that always stuck with me I said perfect practice makes perfect that makes a lot of sense you could do
something wrong and and continue or not do be the best at it and then it wouldn't help you or you could do it each and every time so this is kind of you get into a setup you have the stochastics the the important thing is you get your this is kind of a downtrending market one of the worst things to do is to kind of counter Trend trade it's very hard to do that this will protect you so you have a downtrending market and you want to you want to buy that so simple concept you
buy a lower trend line you have a signal you have a quad rotation all right you get the quad rotation you have a lower trend line that should be taken actually that's a good trade right there but how do you know that this trend is not going to continue so you have to figure out when you're going to get out if the 6010 stays under 20 2530 and is is stuck down here instead of up above the 90 or 8580 that means your bigger trend is down and that you need to sell every rotation of
the 93 above 80 so very simple that you you get if you're in a downtrend trade trend is underneath the 200 period moving average your stochastic 6010 is underneath 20 around that 20 banging around the bottom you can see there's no move and you get a fast rotation up here this is basically the opposite of a bull flag it's a bare flag so identifying a bare flag is very simple by watching the rotation of your 93 and watching the 20 and just selling every time it gets up there so that should be a rule if
you had a rule here and you get it you wouldn't have to worry about this pullback and being wrong if you had a rule you're in here and you got the rotation right there is a rotation right back down you hear you're in in here you're out rule sometimes it moves fast sometimes it moves slow but the stochastics will give you that signal a fast rotation with an embedded stochastic on the bottom is a must take it off trade that's where a lot of people of my Traders get stuck they they just you have to
have a perfect entry you have to be a perfect exit if you're laid on this and you're laid on this you're getting you're not making any money and that's why trading is so hard and you have to be you have to be a pro you have to be at it you have to buy into weakness you got to sell into strength you have to there's so many different things you got to be in the right mindset it's it's tough It's really tough but there's a way there's a path and it's really about um conquering that
discipline and understanding your your weaknesses I mean there's a lot there for you to unpack and people can definitely can take time watch the few times if they want to uh tell me you mentioned you have about three three of these setups but they what else do you do with your time when you don't have setup do you st at the chart and kind of wait for for Trad or do you sit alerts or how do you keep track of the market I I sit in front I'm on the mic all day so we're talking
I'm doing news I'm talking the markets I'm answering questions from the people in our chat room see people I trade stocks options I'm you know it's a full thing going on here it's a lot about education I I love teaching uh trading I love people being successful the the onset of the new prop trading a lot of prop Traders now you know use the system to kind of qualify and you know I want people to be a to be successful doing this so earlier I said and I just came up with this and I I
I think it's ingenious and I want to I want to mention it and hopefully uh you know it it catches on but I've been working on a a service to try to get these super signals out remember super signals like a combination and I think these things are worth tons of money you know because earlier you said time is money and do you want to sit around if there's only three setups a day right but what if those three setups gave you 20 to 30 points I mean you can still have to deal with that
and what's more important for you your time or waiting for the setups and taking them and making money that's a good good question so I said yeah I don't want anybody missing these setups I'm in front of the computer all day I'm on the radio all day let me set up a set up a thing where I send out the super signals over my phone so I set up a um an app Voxer Network you ever hear voxer so we have a channel for super signals so I have the the so when I do see
that trade and people are not I said this is an important trade you know I send out the alert here so we um so here's here's an example of the alert all right it's 12:18 p.m. we just came off the lows and I'm seeing a 143 Divergence here at 5455 5454 buy side Divergence your stop has to go right under 5450 the lows of the session very important to have your stops in at this point because the weakness is in uh but there is a slight 143 Divergence here uh and we're just uh see where
we're going to go from here it is 128 p.m. 12 so I'll send this out and then I'll send a picture of it of the um I'll send a picture of the chart and the setup that way people are not missing that if they're if they're like in the other room they could run to the computer these setups don't move Ian I want you have to send me your name I want to send I want to put you on this so you get alerts you're going to see these alerts and there's the super signals I
mean there are things you don't want to miss so I I I really concentrate on that during the day I really believe in this um call the markets and just watching the craziness that's going on in the world is how it El like keep busy yeah sounds good I mean if you can spot this in events or have alloy it makes a big difference and your allers of course you send on the trasers it's kind of very cool so uh a lot of stuff there it it it's cool it's very it's it's I don't think
you know many people do that I think it's important to be in front of the computer and not everybody could be in front of the computer for these setups so I'm happy I'm not even want to be in from the computer too it's a question of wanting to do it or or not yeah exactly G me to what you have left and I think we can wrap this up but we go a lot to do so it's pretty awesome yeah well I'm just going over some of these you know everything this is kind of the
the ideal setup and if you find a channel just to help people out here if you find a channel look for a Divergence in it that's going to be your Chann Channel breakout every single time you know if you have a recognizable Channel which which we talk recognizable we're talking about a defined channel one two three pattern and you have a the low the end of the pattern you have a low and a lower low and a higher low and a stochastic nine times out of 10 that channel will break out to the outside I'm
not predicting how far it's going to go but I do predict that if you buy the low and you have a Divergence on a candle will break out of the channel so we know there's a big move here and that happens so often and that's what we just have to wait for and in every situation just kind of very important place your stop right on the candle low it's so easy to do that I wanted to go into coil divergences there's a lot of Divergence stuff that that I I do but that's about it and
the flags you know we talked about that rotation if the 6010 is embedded and you have a fast rotation that's called a bare flag and it's much different than you know this is a scientific mathematical way of you know looking at a bare flag it's not about just looking at the flag and saying it looks like a bare flag I know it's a bare flag because I know uh the internals you know I know what I'm seeing on the internals um and it's very easy now to identify a pure a real bare flag oh that
was the Voxer Network I I put that on there just to let people so I'm sending out those alerts but you guys hopefully get some information on that and that I think that was about it at the end that's all I was going to cover today cool stuff I mean we we cover a lot here people can definitely watch a few times on to take notes and we'll have the slides in the show notes people can download them and go through this if they want to what can they find you connect with you if they
need more info about what you do or they just want to learn from you and trade with you oh yeah absolutely of course I always like giving back to you um so all your subscribers I got a link um www DTR that stands for day training rd.va and it's a free uh two we pass into the site you get all the alerts you get attached to everything you get watch the Bots have so much on on the site chat rooms you get access to everything so feel free to come over there and just uh ask
me for anything the templates the Pres PowerPoint presentations and che check out the uh you know check out the community we have hundreds of Traders trading every day together awesome so is John Kisco have a giant passion for trading he's really good at what he does I always sharing a lot of value here for people I really appreciate that and hopefully joh can catch up and see how you doing in the future Dan I love I love U the feedback I get from you so thank you very much and uh have a great one
