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
Chrome Extension