0:00 this is probably the first time your
0:01 your members are going to hear about
0:03 this that is a bull flag I'm the only
0:05 person probably identifies a bull flag
0:07 using stochastics and it it is right and
0:10 I want to show you
0:13 that so welcome with sing Anthony with
0:16 John Kisco good to have him back of
0:17 course in the podcast he's always giving
0:19 value sharing his trades of course
0:21 trading every day capping the market so
0:23 John welc back on the podcast good to
0:24 have you here look forward to see what
0:26 we take this today what we talk about
0:28 awesome at the end it's good to be back
0:30 I get so much great feedback from the
0:32 people come from your uh videos and and
0:35 podcast it's just an amazing thing so a
0:37 lot of the members here at day train
0:39 radio are members of your spot so I just
0:41 appreciate the opportunity to talk to
0:43 you to your subscribers and I was just
0:45 talking to before and we said you know
0:47 this is some really good stuff that uh
0:50 when it comes down to what I teach and
0:51 you know and just to introduce myself
0:53 I'm John Kisco I am the host of day
0:56 trading radio and it's a it's actually a
0:58 show in the US markets um but I cover of
1:01 course right now it's 11:00 at night I
1:03 actually trade most into the evening too
1:05 so we have a good a good overnight or an
1:08 overseas Market too and I've been a
1:10 Trader for since um 1996 when I quit my
1:14 job at the post office you have that
1:15 very famous video Postman quits job
1:17 becomes day trader it was one of your
1:19 your earlier videos I love that seeing
1:21 that come across my feed and that's when
1:25 I started really learning about trading
1:27 um started the show day training radio
1:29 and started teaching traded in 2007
1:31 after you know 20 something no 20 well
1:34 I'm going on 27 years now of trading and
1:38 um and more of the education of it and
1:39 showing people the path I take uh which
1:42 is very hard and what I do every day and
1:46 what I've been doing for years and years
1:47 and years and especially actually as
1:51 people start to realize how I trade and
1:53 and they want to accept or want to um
1:55 adapt some of the concepts I how I trade
1:58 and what I was saying that Traders
2:00 biggest issue is not trading it's being
2:03 not having the discipline not having the
2:05 discipline to take trades and having the
2:08 patience to wait for trades and what I
2:10 say by that is uh you know I develop a
2:12 business plan and that's what I want to
2:14 go over I actually I worked on this
2:16 whole thing over the last you know over
2:19 the last week as I knew I was coming on
2:21 with you and I said you know what I want
2:22 to break this down so simple and just
2:25 give out my three setups that I do and
2:27 it's a business plan that keeps you in a
2:29 trade the hardest thing about trading is
2:32 being in front of the computer at the
2:34 right time for the right trade and what
2:36 is that trade I mean there's so many
2:37 different branches we could go you I
2:39 know you've been trading and you trade
2:41 and there's so many different styles of
2:42 trading you have uh indicators people
2:45 love Fibonacci people like Ballinger
2:47 bands people like everything you know
2:49 everyone has a different thing I have
2:51 developed you know I trade stochastic
2:53 oscillator uh Divergence trading uh but
2:56 I've also added a lot of things over the
2:58 years that combine that and for me and
3:00 my personality type I do not want to be
3:03 an over Trader um so I've developed a
3:06 system to kind of keep me in knowing
3:09 when to exactly get in the trade when
3:10 they get out of trade there's no
3:12 questions nothing anything and that for
3:14 me works because discipline is the major
3:16 f a major issue with Traders discipline
3:19 and patience most Traders are going to
3:20 be over Traders you're going to
3:22 especially fast trading day trading you
3:24 know there's so much I'd love to talk to
3:26 you about you know I want to answer all
3:29 the questions tell me a bit more about
3:31 why do you think Traders should have a
3:32 business plan because people think you
3:34 can just go in the market catch setups
3:36 and trade and you'll be good but why do
3:38 you need to have a business plan around
3:39 it you said it right there people think
3:41 they could go into the markets and just
3:42 trade and take money right you know you
3:45 heard the stats 90 95% of day Traders
3:48 are don't don't make it you know why 95%
3:51 of the people don't make the
3:52 professional sports teams if you're
3:54 going to be great at something if you're
3:56 going to be great at trading not any Joe
3:58 Blow is going to come in into the market
4:00 and just extract money from the market
4:02 it's just like anybody can go into a
4:03 casino and try to make money out of a
4:05 casino you have to go in there with a
4:07 plan you have to be a card counter or
4:09 something like that take the best games
4:11 possible Game Theory you know wait for
4:13 those opportunities and that requires so
4:16 much discipline that requires so much
4:19 patience to be able to fit yourself into
4:21 a business plan that so A business plan
4:23 for me is a successful model of training
4:27 that I could I could look at the plan
4:29 and say is this is this is my product I
4:32 have to find this product just kind of
4:34 being a business you know making money
4:37 to for me to make money and I'm a
4:39 scalper I look for two setups in the
4:41 market and it has to set up exactly like
4:43 this because this is in my business plan
4:45 and if I take the TR uh setup I look at
4:48 what the next step is what's in the
4:50 business plan it says well you move your
4:52 stop up this amount place your stop here
4:54 let it run watch the stochastic 63 you
4:57 know I have things that I'll explain to
4:59 you in a second
5:00 but it's very important to stay within
5:02 that bar barrier because if you're just
5:04 a loose canon in the markets and getting
5:06 back to why do you need anybody could
5:08 come into the market and make money you
5:10 can't you will be eaten up and chew
5:11 chewed up and spit out because the
5:13 market the financial markets are the
5:16 biggest in industry in the world and the
5:18 Joe Blow going in is like being a
5:20 basketball player and you want to make
5:21 it to be the pros you want to make money
5:23 at something then you better be good at
5:26 it and the market will take you know it
5:29 know where to go the algorithms the
5:31 things it's not as easy as you think oh
5:33 I have to get in you know a lot of
5:34 people say I just have to get in and get
5:36 out you know follow the trend and stuff
5:38 but you know I I've done this a long
5:40 time and now I've come down to a point
5:42 where I realize less is more you know
5:45 wait for the
5:46 opportunities be there in front of the
5:49 opportunities another important thing is
5:52 is if you you know to be a a Trader
5:55 full-time Trader which I kind of am I'm
5:58 a full-time Trader it's very hard to do
6:00 because you have to be in front of the
6:03 computer you know pretty much uh most of
6:06 the day I mean there's different type of
6:08 Traders we have swing Traders we have
6:09 you know uh day Traders we have scalpers
6:12 but for like a scalper looking for
6:14 certain setups you have to be there for
6:15 the setup to be and to be able to take
6:17 the setup when you see it and get out
6:19 when you're not in front of that time to
6:21 put the time and effort in being a
6:22 professional all right being a
6:25 professional professional is being
6:28 successful to be to get up there and do
6:30 that and be be focused enough to take
6:32 the setups don't Goof Off don't
6:34 overtrade don't gamble all these
6:36 different things add add to the formula
6:38 then you become successful over time
6:40 after you go through that learning how
6:42 to so that's what a business plan A
6:45 business plan does for me it identifies
6:47 everything keeps you in a it's a proven
6:50 way that something works and if you
6:52 follow the business plan it will work if
6:55 you go outside the business plan it
6:56 won't work if you start to gamble I know
6:58 the setups that work I going to show you
7:00 three setups today that if you took it
7:02 they're exact setups what's great about
7:04 it at over the years you I want to share
7:07 some stuff with you whenever you want to
7:08 do that but over the years I have
7:10 developed you know I use stochastics I
7:12 have four bands of stochastics I called
7:14 my quad rotation and it's my own
7:16 indicator that I developed and uh the
7:19 results are just amazing and when I
7:21 combine that with a stochastic
7:23 Divergence it you know when we go back
7:26 and I show you what it looks like you'll
7:28 see it just works every time and if you
7:31 found something that worked every time
7:32 and it's hard to say that like there's
7:34 no hole of Grail on the market but the
7:36 right conditions and everything and
7:38 lined up the way you see it here it'll
7:40 work 95% of the time maybe you might get
7:42 hit with news or something like that if
7:44 you had a setup wouldn't you wait for
7:46 that setup or would you you knew
7:48 something a certain setup it had to be
7:50 perfect combination stochastics were
7:51 rotating down here prices above this
7:53 moving average uh something else is set
7:56 up and everything converges and the
7:58 Confluence is perfect and you know every
8:00 time that happened it was a 95% chance
8:04 it would work would you just wait for
8:06 that setup and be 95% perfect or would
8:09 you say that only works maybe it works
8:12 three times out of the three times out
8:14 of the day and I'm sitting in the front
8:15 of the computer for eight hours and I'm
8:17 going to take three trades well that's
8:19 that's the thing and people want to have
8:20 that kind of setup that works all the
8:22 time every five minutes to come back and
8:24 come back and take it and make money it
8:26 will be hard to wait for 3 or four or 5
8:29 hours is like being there and doing
8:30 nothing cuz then you feel you're losing
8:31 your time so for most people that's
8:33 really hard to do very hard to do so the
8:35 more time you're in the market the
8:37 market has a better chance of taking you
8:39 out you know it's it's that also like so
8:42 a lot of the techniques and a lot of the
8:44 the situ you know the trade setups I
8:46 call them the trade setups that we do I
8:48 apply those on daily charts for
8:51 long-term trades I apply them on my 1
8:54 minute 5 minute time frames for my
8:56 scalps some people use it on their 10sec
9:00 chart and that really kind of and that's
9:02 pretty good you know and I said you know
9:04 let me let me start looking at this
9:06 10-second chart and I said all right I'm
9:07 checking out and then I'm you you know
9:09 then I find that things work on the tick
9:11 chart and things are working on
9:12 different type of charts and stuff and
9:14 you know it depends on your time frame
9:17 it all adds into what I'm going to show
9:18 you I mean I have something really kind
9:20 of special for you you know cuz I made
9:23 These Blueprints and I'll get I'll send
9:24 them to you and you could actually give
9:25 them to whoever wants them and stuff a
9:27 little PowerPoint yeah we'll put them
9:29 link below if you can check it out and
9:31 tap there to access them uh yeah got me
9:33 through it show me the service and show
9:35 me what you have to share with people CH
9:36 see that all right remember we just
9:38 we're just talking about you have to
9:40 really you have to really determine what
9:42 type of Trader you are you know and
9:45 applying these different techniques
9:47 could work on each one of these things
9:49 it's just a different time frame
9:51 today what I specialize in is trying to
9:55 get people to make daily income in the
9:58 markets and when I say daily income it's
10:00 going to a job each morning sitting in
10:01 front of the computer identifying setups
10:04 taking the trades and making and I be
10:06 realistic on things you know trading the
10:09 uh Mees or S&P futures contracts uh just
10:12 to kind of give you a little background
10:13 on exactly what I trade I I trade
10:16 Futures and um and and I use I I trade
10:21 them on a a shorter time frame one you
10:23 know I scalp them during the day and
10:24 what I'm looking for and I'm usually
10:25 trading the mees which are the micro
10:27 contracts instead of the the the regular
10:29 es mini uh the mini es um which is a
10:33 little bit heavier and kind of you know
10:36 it goes against you fast you could be
10:37 heard a lot so the micros are really
10:39 good to actually start trading with
10:40 especially for some of the newer Traders
10:42 are just starting out um anyway uh we're
10:45 going to be talking about scalping today
10:46 scalping but day trading and scalping
10:48 kind of the same thing swing trading and
10:50 position trading everyone knows the
10:52 stuff like that
10:54 um so remember we were talking we're
10:56 talking about business plan um this is
10:58 my business plan you know basically I I
11:02 live by a business plan so sometimes I'm
11:04 so scattered I have a lot of stuff in my
11:07 head about trading and stuff but I go
11:09 all over the place and I'm always
11:10 looking for things so it's very
11:11 important to me that I Define everything
11:13 for me it's my personality type just
11:16 other people have a good a different
11:18 personality type and they're able to
11:20 handle things for me I got to really put
11:23 everything in a flowchart that's what I
11:25 did for you tonight you know today I
11:27 actually made a flowchart which makes it
11:29 EAS easy for people to get into a trade
11:31 and what this is going to do it's going
11:32 to prevent overtrading and it's going to
11:34 prevent losing basically you know all
11:38 right so let's jump on here Order of
11:40 course this is you know I guess you guys
11:42 could pause the video and kind of write
11:44 this stuff down order criteria profit
11:46 exit criteria all these things need to
11:49 be figured out as you're trading you
11:50 can't be just going into the markets and
11:52 not knowing what's going on so all these
11:55 things should be defined before you get
11:57 into a trade your how you going to get
12:00 into a trade what are you looking for
12:01 how you going to get out of a trade
12:03 automatic stop criteria do you have one
12:05 where's the stop go what's the risk
12:06 management of the method and what I mean
12:09 by that that could be a little bit
12:10 complex but you know what do we want to
12:12 add shares take take shares off how and
12:14 when do we want to increase the position
12:16 F size how to set up your charts tools
12:19 of trade balance I don't worry about the
12:21 balance thing that's from an old uh
12:23 thing here um and then these are my
12:26 rules and this is again everything about
12:29 this is an important thing I know this
12:32 works this is what I do every day you
12:34 know so I'm very comfortable of teaching
12:38 this I am proud to teach this I I I
12:40 teach this because I enjoy like you do
12:43 travel and freedom and I I feel like
12:46 people you get stuck in the grind you
12:49 know I mean you might you have dreams
12:50 you want to do and not many people
12:52 achieve those dreams and this is kind of
12:55 a path that you could achieve those
12:56 dreams if you have discipline and pay
12:59 you can make something out of yourself
13:01 as a Trader it has to but you have to be
13:03 the best you have to be the best you
13:05 could be and to be the best you have to
13:07 have be organized and these are the
13:10 setups I want to show you these setups
13:12 today very easy to say I'm not going to
13:14 I know we have limited time and a lot of
13:16 people don't know about the stochastics
13:17 and stuff I probably discussed them on
13:20 the other videos you have so I did I've
13:22 done like four videos we so I'd
13:24 recommend other people to look up the
13:26 rest of the videos yeah we l them Below
13:28 in the show not people can check them
13:30 out and go through those we do a lot of
13:32 stuff in depth and you went through all
13:33 the settings and stuff so that's been
13:35 very powerful we went through a lot in
13:37 those videos and it's all based off the
13:39 same thing I mean I'm truly um you
13:43 know really love this style of trading
13:47 it's it is a very successful it's the
13:48 only way to be successful you know you
13:51 know and I I I sound crazy saying that
13:53 but it you it comes down to having a
13:55 great methodology doesn't do anything
13:57 unless you have a a Trader and the
13:59 trader is the weakest link in trading
14:03 you know you're the one that's going to
14:04 be and I'm going to show you something
14:05 I'm not going to waste any more time so
14:07 anyway some some of these things you
14:08 might not know the super signal is
14:11 emerger of the Quad rotation now quad
14:14 rotation something I um I designed using
14:18 four stochastic bands and each
14:20 stochastic band I'm want to try to you
14:23 see these four bands down here these are
14:25 my stochastic bands now they're all
14:27 based on different times they're fast
14:28 stochastic
14:29 93
14:30 14344 and 6010 now I'm not afraid of
14:33 giving this stuff out you people say man
14:35 this stuff works so good why are you why
14:37 are you getting it out there because you
14:39 know what most people are going to fail
14:41 because they don't have the discipline
14:43 and patience and it's just that way it's
14:45 like I'm not worried you know you have
14:47 to you have to be the best person you
14:49 could be as a Trader you know you got to
14:52 if anything you do you got to be the
14:54 best you could be and to do that you
14:56 have to wait for this setup now here's
14:58 our four stochastic banss you got to
15:00 learn the system you got to abide by it
15:02 take the signals and get the hell out
15:04 and use this as a a cash machine so
15:07 these are my quad rotations and I'm
15:09 watching the comment as I I call this
15:12 like looking at an echo cardiogram of
15:14 the markets stochastics developed by
15:18 George Lane in the 1950s and again this
15:20 is some stuff that I've already
15:21 discussed with most of the people I want
15:23 to kind of drump to that thing here we
15:25 going to jump past this um George Lane
15:27 here in 19 50s it's a oscillator that
15:30 measures momentum so it's a momentum
15:33 indicator shows the location of the
15:35 close relative to the previous closes
15:37 and that's part of the formula and not
15:39 to get I don't want to blow anybody's
15:40 mind here uh but you could read up on
15:42 stochastics and how it's the how the
15:44 formula works but you're looking back at
15:46 a certain amount of periods in your
15:47 candles so I'm going to go back to our
15:49 chart here we're looking at the time so
15:52 the stochastics have go from a range
15:54 from zero to 100 and that really
15:56 represents how this candle Clos on a
15:59 range of 0 to 100 so if the candle is so
16:03 big you know it's that big the top would
16:06 be 100% of the candle the bottle be and
16:08 there's a formula that over time you're
16:10 you're learning how this candle is
16:12 closing uh relationship with even the
16:15 price so you could actually start to see
16:17 the momentum the closing is moving
16:19 higher even though the price is going
16:21 down so that's the key to divergences is
16:24 one than you know looking at Price
16:27 action versus the momentum internal you
16:29 now what's great about the stochastic
16:31 it's measuring the internal turn over
16:33 price over a period of time what you can
16:35 see on the outside on the chart because
16:38 the price is still going down but
16:39 because of the moving average this is
16:41 represents it's starting to turn back up
16:43 we're going to get a turn up and that
16:45 lags and that always adds that always
16:47 makes a a nice move so right there is
16:49 our key number one setup it's called the
16:51 stochastic price Divergence and that's
16:54 very important in our trading now like I
16:56 said some of these things don't happen
16:58 all the time so what if you had to wait
17:00 here this is 2 in the morning which is
17:02 great about this is people in Europe
17:03 could trade this stuff now we've talked
17:05 about this before but the concept here
17:08 is momentum is going to go up and then
17:11 if you have a rocket and you have the
17:13 engine out of the rocket and it dies all
17:15 right it shuts off you could easily
17:18 measure that shut off it goes straight
17:19 up and then it dies but the mark the
17:21 rocket that it's pushing won't just die
17:24 it'll have momentum and it'll continue
17:25 to move up and that's the concept of
17:27 divergences Divergence is well the
17:30 momentum will dry up though the price
17:32 will go higher that's a sell-side
17:33 Divergence knowing that we're going to
17:35 eventually roll over we measured that
17:37 the the and here's a good example of it
17:40 here it is you see this right here
17:41 here's your stochastics here's your
17:43 price St you have a stoas stochastics
17:46 are low stock stocks High go back over
17:49 here I'm looking up here let's take a
17:51 look we just found one there here this
17:54 one right here this like this kind of a
17:56 high and there's a double top right
17:58 there higher and a lower high that's a
18:00 Divergence again sometimes these things
18:03 could be a little overwhelming for
18:04 someone who doesn't know the concept of
18:07 Divergence trading but that's um that's
18:10 kind of the basic of that setup this is
18:13 what a Divergence looks like let's just
18:14 go over that Divergence a little bit
18:16 more because it could be found on any
18:18 time frame I like to use it on the five
18:20 minute and the one minute time frame for
18:22 scalping but if you find this on the
18:24 daily chart it's a great like if I find
18:26 Apple in a Divergence it is it's one of
18:29 the best setups ever it's like um and
18:32 again you could see the the low the
18:35 higher low the low the lower low this
18:38 you know the lower price but the
18:39 momentum has shifted soon the price soon
18:42 the price will shift that's our go-to
18:44 trade now I know it's again here you
18:46 have a situation where you're going
18:47 through the day and you have three
18:48 setups are you able to get by and just
18:50 wait for these setups and when do you
18:52 get out so I wanted to do this for you
18:56 um again just i i figur people are going
19:00 to pause the video and and maybe take
19:03 screenshots of it or I could send you
19:04 the information or they could get it at
19:06 the site this is Again part of a
19:09 business plan is knowing exactly how
19:11 everything is setting up now this is my
19:13 old way I used to do this I just was to
19:15 write write it out but I said you know
19:16 it might be better if we put it into a a
19:19 flowchart it might be easier for Traders
19:21 because I still find Traders having a
19:22 hard time following a business plan when
19:25 it's written out for you you know that's
19:27 the that's the big thing thing all right
19:29 so there's important things here that we
19:31 could go into but I want to get to get a
19:32 little further moving here just to give
19:35 you examples of divergences all right
19:38 now this Divergence is just one part of
19:41 the system and the system is and here
19:44 again this is we're going to jump right
19:46 into this these are my new flow charts I
19:49 I I I just put together this is remember
19:52 earlier we talked about the quad
19:54 rotation and then we talked about the
19:56 Divergence so kind of didn't put them
19:59 together when I was talking about it but
20:01 the first thing we were talking about is
20:03 these these um rotations of the Quad
20:06 rotation and when all each one of these
20:09 bands get oversold under 20 at the same
20:12 time that is what we call a quad
20:15 rotation this is probably the first time
20:17 your your members are going to hear
20:18 about this all right this is something I
20:21 I do I I teach this is exclusive to you
20:23 know my teaching um and this is very
20:26 important in part of the timing and what
20:28 this represents
20:29 is multiple time frames converging the
20:32 one so remember the the stochastics are
20:35 measuring our candles look back period
20:37 so this is nine candles this is 14 uh
20:41 candles I don't have it labeled This is
20:43 40 candles and this is 60 candles all
20:46 right so it takes a longer time for the
20:47 big ship to move this is the bigger
20:50 Channel I've done the calculations that
20:53 put me at the 6010 area here the 6010
20:57 stochastic represent present the 5
21:01 minute time frame when I used the 93
21:03 stochastics which your default um it's
21:07 your default stochastics on the 5 minute
21:09 so instead of having two charts or
21:11 anything and you could lay these over
21:13 but this is an excellent way of actually
21:15 knowing when all your time frames are
21:17 going to be lined up and when you have
21:18 the time frames lined up there's a
21:20 better chance you're going to get the
21:21 biggest move because what I am searching
21:24 for in the markets is my job and you
21:26 know I'm looking for pullbacks and
21:28 positive markets like a good uptrend and
21:31 a pullback and I'm looking for PIV what
21:32 we call pivots pivots are uh Market
21:36 coming down and then the market moving
21:38 up and the pivot is the area where it
21:40 changes Direction and this could pivots
21:42 could be very small pivots little Flags
21:45 it could be larger pivots um but we
21:48 identify these pivots by just putting
21:50 our basic trend lines in like this and
21:52 it's very easy when I'm trading and I'm
21:54 this is what I'm doing you're actually
21:55 following
21:56 me um you're f me trading right now cuz
21:59 what I'm doing during the day is marking
22:02 this out for you I'm I'm saying all
22:04 right we got a quad rotation here you
22:06 know take your short and put your stop
22:08 right at the highs and that's that would
22:09 be our short because we're only taking
22:11 that setup we get down to a quad
22:13 rotation here this is one of our setups
22:16 that we look for a bounce and we look
22:18 for a you know what we call a super
22:21 signal that develops all this so if we
22:24 have a quad rotation and then we had any
22:26 of a Divergence that is considered our
22:29 Holy Grail setup so that is just a
22:32 simple simple thing that takes all the
22:35 emotion out of trading now now I've have
22:37 eliminated emotion in the trading I've
22:40 given us our best setup ever because of
22:45 the hours and hours of research that
22:47 Divergence right there combined with the
22:48 quad rotation here tells me that there's
22:51 this going to usually there going to be
22:53 a bottom here now that's a double bottom
22:55 higher stochastic rotation right there
22:57 that's our low your stop goes right
22:59 under the the low goes one tick first of
23:01 all this technique this technique of
23:04 trading here is so good because your the
23:07 risk is automatically defined and that's
23:09 another thing that's going to kill
23:11 Traders Traders don't put their stops in
23:13 right away you you automatically you're
23:15 jumping you're jumping in and you're
23:17 letting a g you're gambling if you're
23:19 gambling you might as well go to the
23:21 casino if you're going to trade the
23:22 market you want to make something out of
23:24 it and and live a life like etan lives
23:29 multiple countries you got to step up
23:32 you got to step up to the plate and you
23:34 got to only take the Divergence setups
23:36 and I keep on saying that like you know
23:37 I am like you know I'm that comfortable
23:40 and confident with this combination
23:42 right here these things work now that's
23:44 just part one of the sit situation the
23:46 part two is getting out of the trade all
23:48 right and another thing that's hard for
23:50 Traders to do and this is another mental
23:53 thing and you have to get through this
23:54 is a lot of traders buy when it feels
23:57 good to buy you have to buy when if you
23:59 have to trust the system you have to
24:01 trust the pullback you have to say all
24:03 right I'm on the lower part of the trend
24:05 line I have I have a drop here but I
24:07 have a pop here and I have a higher low
24:09 and a lower low I need to buy into that
24:13 weakness all right when I buy into that
24:15 weakness that's the only way you're
24:17 going to get the best price ever is
24:19 buying the weakness buying the fear the
24:22 only way you're going to
24:24 sell um the best price is selling the
24:27 greed and selling the Euphoria and
24:29 that's very hard for a human to do for
24:33 me at least you know you want to you
24:35 want to go but this is a business again
24:37 we have to come back to saying the only
24:39 way you're going to be successful is
24:40 Define this as a business and take these
24:43 trades off don't gamble don't let it
24:44 come back on you so how do we know when
24:46 we get out of here all right that's
24:49 that's the that's probably the the easy
24:51 part is actually waiting for this you
24:53 know this is the easy part now I'll go
24:55 through the day and say this is 2: in
24:57 the morning but just pretend that's good
24:58 for actually I like the overnight trade
25:01 now and even though I live in New York i
25:03 s find myself getting up sometimes or
25:06 staying up real late because I find that
25:08 you know the algorithms and stuff don't
25:10 really affect we don't have the news but
25:12 we do get the setups I mean these are
25:14 still setting setting up um and this is
25:17 excellent for prop Traders too we teach
25:19 a lot of prop trading and I I have
25:22 everyone start off with the propit
25:23 counts with this because you can qualify
25:25 easy if you you know and it's a good
25:27 testing ground you don't you know you
25:29 test it with the prop you said take only
25:30 the setups and you'll find out you'll
25:32 start qualifying on these things you you
25:34 abide by the rules the um the same thing
25:38 on the downside here look look at this
25:40 double top the lower stochastic normally
25:44 you know when we say double top normally
25:45 if you get a high you get a higher high
25:47 or the similar highs when you get a high
25:50 like this and a lower high on the
25:52 stochastic remember what this is this is
25:54 the rocket going up this is the engine
25:56 shutting down and engine shuts down then
25:59 the rocket starts to roll over so you
26:02 first of all Divergence is number one
26:04 indicator out there very similar to the
26:06 macd very similar to some other ones
26:09 they all gives good Divergence
26:11 indicators I know more about stochastics
26:13 than anything uh so I'm I'm you know I I
26:16 that's the system I I
26:18 teach um now with adding the quad
26:21 rotation to it so whenever we have a
26:23 downward Channel we look for our quad
26:25 rotation now 9343
26:28 44 there's so much here at h i you know
26:32 I I want to come back and do a webinar
26:34 for you because there is there's a trade
26:38 here is called an embedded stochastic
26:41 level here this this embedded stochastic
26:44 whenever this is up here above 90 all
26:47 right and you get a rotation on this on
26:50 the 93 that is and it holds the 2050
26:53 period moving average that is a bull
26:55 flag I'm the only person probably
26:57 identifies is a bull flag using
26:59 stochastics and it it is right and I
27:01 want to show you that here in a second
27:03 so we just looked at I I'll take a
27:05 breath I don't know if you have any
27:07 questions or anything I mean this is
27:09 this is really cool there's a lot of in
27:10 to this um I know in the past when we
27:12 did videos together a lot of people
27:13 comment about the fact that oh your
27:15 charge like a Christmas tree it's like
27:16 too many indicators too many things I
27:19 think over time you kind of got to a
27:20 point where you understand these things
27:21 and you really know how they work and
27:23 then you can read them easily for
27:25 beginner is that too much stuff in the
27:26 chart did you feel like they could deal
27:28 with it then kind of learn that way
27:30 anyway what I do I know a lot of you
27:32 know a lot of Traders are new Traders
27:33 they come back or they find find find me
27:36 um through you you know just being out
27:38 there I've been a Trader for a long time
27:41 and success you know is is pretty good
27:43 when things work and it becomes very
27:45 logical you know it becomes very very
27:47 logical um there's a lot of indicators
27:50 on here you know I guess I love this I
27:53 love the different colors this is the
27:55 way I've always had my charts I you know
27:57 I have the template for you know this if
27:59 anybody wants the template just get in
28:01 touch with me uh I have the template for
28:04 this for Ninja Trader too CU I use a
28:06 ninja Trader platform so you know this
28:09 is my standard go-to indicators I'll go
28:13 over real fast I have the 20 period
28:16 moving average EMA the 50 EMA the 200
28:22 EMA the main pivots which I don't really
28:25 pay that much attention to but I do have
28:27 them on there these orange lines are my
28:29 own support and resistance lines that go
28:30 out for day so if I find an important
28:32 level I'll draw an orange line and I'll
28:35 extend it so it means if we ever come
28:36 down to it I'll I'll know it's there for
28:38 something and then our stochastics um oh
28:42 then there's the vwap which is very
28:43 important the vwap is one of the best
28:45 indicators you could have and then I
28:47 have our stochastics now stochastics are
28:49 formed with two lines a k a percentage
28:52 dline and percentage Kline and not to go
28:54 into the again feel free to you know I
28:57 love the teach you more of this but we
28:59 won't spend too much time on what the k
29:01 and D line is but I'm using the D line
29:04 here and the dline is the signal line um
29:08 and the signal line is all you know
29:10 again this has been worked on for years
29:12 on getting the the right uh rotations
29:16 and how everything kind of orbits
29:18 together and when they all line up
29:20 together like this you get an explosive
29:21 move and that's just with that that's
29:24 just a quad rotation now you add a
29:27 Divergence to this like I said I was
29:28 that's what I was just doing my anatomy
29:30 of a trade uh this is for actually let
29:33 me go back so this is what I call the
29:36 Holy Grail remember we were talking
29:37 about a quad rotation and a Divergence
29:41 that's what I call a quad
29:43 Divergence the best setup out there you
29:45 know 90 when you're talk about that 95
29:47 percenter if I was teaching my grandkids
29:50 or my kids or I don't have grandkids or
29:52 anything if I could teach my kids when
29:54 they get old enough to trade I would
29:56 just say you know I I teach them this
29:59 setup and have them trade this setup and
30:01 then there's a couple other setups you
30:02 do but more time you're in the market
30:04 more time if this worked like we just
30:06 discussed earlier if I gave you a setup
30:07 it worked 95% of the time it worked so
30:10 good why wouldn't you wait for it it's
30:12 so hard to not uh you know and if that
30:15 is
30:16 true this if this is how we get to that
30:19 I don't care how many lines you put on
30:20 that this is pretty organized I mean I
30:22 think this is pretty organized the color
30:24 scheme is good I think it's a very
30:26 pretty chart
30:29 the um this is it so this is our Buy
30:31 Signal um this is the super signal all
30:34 right Buy Signal you enter stock when
30:37 and this is the first I just made these
30:38 for you so um it might be a spelling
30:40 thereor a two in there but price has a
30:43 pullback in an organized fashion all
30:45 right so we're usually in an uptrend I
30:48 like uh a pullback in organized fashion
30:50 means there's an identifiable Channel
30:53 everything channels out Forex channels
30:55 out stocks Channel out you know very you
30:57 get to identify a channel it's just
30:59 basically the range that you're coming
31:01 down in and when you start to see that
31:03 you try to identify it's what I call the
31:05 one 123 pattern because you need three
31:07 pivots one two three and then you could
31:10 if you have two on one side you could
31:11 draw a straight line and Co down and you
31:13 have one on top you could put that and
31:14 you'll have a parallel Channel just by
31:16 three points and then you trade four
31:19 five and six now four five and six ended
31:21 up being the Divergence and it's quad
31:23 rotation that's considered a super
31:25 signal and uh again here first stage is
31:28 all four stochastic bands drop under the
31:30 20 line which is all four of these drop
31:32 under the 20 then what happens is the
31:35 second stage the price bounces just a
31:37 little it goes up up here could be a
31:40 little bit higher could be a little bit
31:42 higher but it has to Just Bounce a
31:43 little and the stochastics on the 93
31:45 bounced a little and then stage
31:48 three as the price then drops back equal
31:52 or lower than the last the first stage
31:54 price the 93 stochastics turns up above
31:56 the 20 line so here you had that little
31:58 bounce and then you had the rotation
32:00 back down and the stochastics turned up
32:02 above the 20 line so that is your
32:04 Divergence combined with a quad rotation
32:07 meaning that are bigger time frames in
32:09 your favor so this is not only going to
32:11 give you a good trade it's going to give
32:13 you a big long trade so when we have
32:15 that set up I know to take a bigger
32:17 amount of uh shares if I'm taking um if
32:20 I'm taking five mes 10 Mees I'll maybe
32:23 switch over to the es and Tak a couple
32:26 es trades because work that's where
32:28 you're going to make your money and you
32:30 know you know these markets you get two
32:32 candles you get 10 points these days in
32:34 some of the but this is you have to wait
32:37 for that you always take it with a
32:38 visual confirmation the turn back up of
32:40 the 93 stochastic activating the
32:42 Divergence signal so right when you see
32:44 that turn back up is when you take that
32:46 trade you take that trade right when you
32:48 see that turn back up and then um you
32:51 place your stop one to two ticks under
32:53 the pattern low candle so when you have
32:54 that low and you get to turn back up you
32:57 put a a stop right under that low that's
32:59 the best stop you ever get on any setup
33:01 at the diver what's great about is the
33:03 Divergence fails you should have a stop
33:05 there it won't work and it barely fails
33:07 so it's you're good in either way so
33:11 that that's the whole that that is a
33:13 like a key setup right there just a key
33:15 setup and then all right well are we
33:17 going to wait for that there's remember
33:18 I was saying before I have the quad
33:20 rotation identifying Flags now and this
33:23 is just a textbook thing so um B on a
33:28 flag a flag is a continuation pattern
33:30 something I would trade if the Market's
33:32 trending nice and um you get a nice push
33:36 I got start Buy Signal enter one um
33:40 enter stock I would say Futures price
33:42 has an aggressive aggressively moves up
33:44 off the 20 EMA with a steeper than
33:47 average move so we we this is what we
33:49 call a flag
33:51 pole uh and it just pulls off of a 20
33:54 period moving average and then you're
33:56 looking at the stoas Plastics here all
33:58 of them are kind of up here they're all
34:01 and we what happens is the 610 is the
34:03 one of the most important ones and I
34:05 could do a whole webinar on on the 6010
34:08 but the 6010 has to be above 80 and what
34:11 happens is that 6010 is the five minute
34:13 time frame so if that's embedded all
34:16 right that's what we call embedded that
34:19 means the the trend is strong and this
34:21 pulls back to the 20
34:23 line all right so what happens and it
34:26 stays up above 80 as the 993 pulls back
34:29 to the 20 and the price holds the 20
34:31 that is called a 2020 bull flag 2020
34:35 bull flag again very simple the it works
34:38 all the time it's just a matter of
34:40 putting the pieces together and taking
34:42 it wait for the push up here the pull
34:44 back to the 20 stochastics rotate down
34:47 to the 20 the 6010 holds above 80 the
34:51 the 2020 comes to of the price above the
34:53 20 and the 93 hit in 20 you buy when the
34:57 93 hits the
34:59 20 the 93 is the stochastic when it hits
35:02 the 20 you're buying usually that's the
35:03 weakest point before it starts turning
35:05 back up now this doesn't seem like a big
35:07 trade here you might say oh I'm looking
35:09 for a lot more and stuff well this works
35:11 on different time frames different
35:13 everything this is the concept this is
35:15 the trade and this will probably give
35:16 you three or four or five points 93 has
35:19 dropped back down towards the 20 line
35:21 the 6010 stochastic hes above 85
35:23 preferably 90 the higher this 60 period
35:27 is the bigger the bigger is the stronger
35:28 the
35:29 trend all right so that's the bull flag
35:31 so that's two setups right there two
35:34 setups now you know say we we get a A
35:37 system that gives you really good
35:39 results like maybe 80 75 80% of those
35:43 time trades are really good trades but
35:46 there's still 25 30% you know losers but
35:50 you would still think that's pretty good
35:52 and um if we look at this next chart
35:55 here I figured out when a setup gets
35:58 weak um and we're able to see that and
36:01 we could eliminate 50% of the losers by
36:04 applying a rule and again this works off
36:07 the stochastics too and I've done all
36:09 the testing on this so now so if you had
36:12 like um you
36:14 know seven uh I always say seven out of
36:17 10 trades were successful three were
36:18 losses you could eliminate two of those
36:21 I bet by applying this rule all right
36:24 and this rule is and again this is based
36:27 off of it a super signal entry and when
36:30 do you get out of a trade now this is
36:32 should be standard this is the this is
36:33 where you're going to be successful or
36:35 you're not going to be successful
36:36 because success is or you know being
36:39 having a business plan means you have to
36:41 have an entry and you have to have an
36:43 exit plan and if you're not if you're at
36:45 one point you could get in at this point
36:47 you're like well I'm going to gamble and
36:50 see how far it goes oh it's coming back
36:52 down that's just not that's not being
36:56 proactive in your account building you
36:58 know you want to do that perfect
37:00 practice I tell you I don't know if I
37:01 ever told you this I remember my
37:03 baseball coach would yell everyone he
37:06 say we're not pract we're not practicing
37:08 good it's per you know it's not practice
37:10 makes perfect he goes it's perfect
37:12 practice makes perfect and I said wow
37:15 that always stuck with me I said perfect
37:17 practice makes perfect that makes a lot
37:19 of sense you could do something wrong
37:21 and and continue or not do be the best
37:23 at it and then it wouldn't help you or
37:25 you could do it each and every time so
37:28 this is kind of you get into a setup you
37:30 have the stochastics the the important
37:32 thing is you get your this is kind of a
37:34 downtrending market one of the worst
37:37 things to do is to kind of counter Trend
37:39 trade it's very hard to do that this
37:41 will protect you so you have a
37:43 downtrending market and you want to you
37:45 want to buy that so simple concept you
37:47 buy a lower trend line you have a signal
37:49 you have a quad rotation all right you
37:51 get the quad rotation you have a lower
37:53 trend line that should be taken actually
37:55 that's a good trade right there but how
37:56 do you know that this trend is not going
37:58 to continue so you have to figure out
38:00 when you're going to get out if the 6010
38:03 stays under 20 2530 and is is stuck down
38:07 here instead of up above the 90 or 8580
38:10 that means your bigger trend is down and
38:12 that you need to sell every rotation of
38:14 the 93 above 80 so very simple that you
38:18 you get if you're in a downtrend trade
38:20 trend is underneath the 200 period
38:22 moving average your stochastic 6010 is
38:25 underneath 20 around that 20 banging
38:27 around the bottom you can see there's no
38:28 move and you get a fast rotation up here
38:31 this is basically the opposite of a bull
38:33 flag it's a bare flag so identifying a
38:37 bare flag is very simple by watching the
38:39 rotation of your
38:40 93 and watching the 20 and just selling
38:44 every time it gets up there so that
38:46 should be a rule if you had a rule here
38:48 and you get it you wouldn't have to
38:49 worry about this pullback and being
38:51 wrong if you had a rule you're in here
38:53 and you got the rotation right there is
38:54 a rotation right back down you hear
38:57 you're in in here you're out rule
38:59 sometimes it moves fast sometimes it
39:00 moves slow but the stochastics will give
39:03 you that signal a fast rotation with an
39:05 embedded stochastic on the bottom is a
39:08 must take it off trade that's where a
39:10 lot of people of my Traders get stuck
39:12 they they just you have to have a
39:14 perfect entry you have to be a perfect
39:16 exit if you're laid on this and you're
39:18 laid on this you're getting you're not
39:20 making any money and that's why trading
39:21 is so hard and you have to be you have
39:24 to be a pro you have to be at it you
39:26 have to buy into weakness you got to
39:27 sell into strength you have to there's
39:29 so many different things you got to be
39:30 in the right
39:32 mindset it's it's tough It's really
39:34 tough but there's a way there's a path
39:37 and it's really about um conquering that
39:41 discipline and understanding your your
39:44 weaknesses I mean there's a lot there
39:45 for you to unpack and people can
39:47 definitely can take time watch the few
39:48 times if they want to uh tell me you
39:51 mentioned you have about three three of
39:52 these setups but they what else do you
39:54 do with your time when you don't have
39:55 setup do you st at the chart and kind of
39:57 wait for for Trad or do you sit alerts
39:59 or how do you keep track of the market I
40:02 I sit in front I'm on the mic all day so
40:04 we're talking I'm doing news I'm talking
40:07 the markets I'm answering questions from
40:09 the people in our chat room see people I
40:11 trade stocks options I'm you know it's a
40:13 full thing going on here it's a lot
40:16 about education I I love teaching uh
40:18 trading I love people being successful
40:21 the the onset of the new prop trading a
40:23 lot of prop Traders now you know use the
40:25 system to kind of qualify and you know I
40:28 want people to be a to be successful
40:29 doing this so earlier I said and I just
40:33 came up with this and I I I think it's
40:35 ingenious and I want to I want to
40:37 mention it and hopefully uh you know it
40:40 it catches on but I've been working on a
40:42 a service to try to get these super
40:44 signals out remember super signals like
40:46 a combination and I think these things
40:47 are worth tons of money you know because
40:50 earlier you said time is money and do
40:52 you want to sit around if there's only
40:54 three setups a day right but what if
40:57 those three setups gave you 20 to 30
40:59 points I mean you can still have to deal
41:01 with that and what's more important for
41:02 you your time or waiting for the setups
41:05 and taking them and making money that's
41:06 a good good question so I said yeah I
41:09 don't want anybody missing these setups
41:10 I'm in front of the computer all day I'm
41:12 on the radio all day let me set up a set
41:15 up a thing where I send out the super
41:17 signals over my phone so I set up a um
41:20 an app Voxer Network you ever hear voxer
41:23 so we have a channel for super signals
41:26 so I have the the so when I do see that
41:29 trade and people are not I said this is
41:31 an important trade you know I send out
41:33 the alert here so we um so here's here's
41:37 an example of the
41:39 alert all right it's 12:18 p.m. we just
41:42 came off the lows and I'm seeing a 143
41:45 Divergence here at
41:47 5455
41:49 5454 buy side Divergence your stop has
41:51 to go right under 5450 the lows of the
41:54 session very important to have your
41:56 stops in at this point because the
41:57 weakness is in uh but there is a slight
42:00 143 Divergence here uh and we're just uh
42:04 see where we're going to go from here it
42:06 is
42:07 128 p.m. 12 so I'll send this out and
42:10 then I'll send a picture of it of the um
42:13 I'll send a picture of the chart and the
42:14 setup that way people are not missing
42:17 that if they're if they're like in the
42:18 other room they could run to the
42:20 computer these setups don't move Ian I
42:22 want you have to send me your name I
42:24 want to send I want to put you on this
42:26 so you get alerts you're going to see
42:28 these alerts and there's the super
42:30 signals I mean there are things you
42:32 don't want to miss so I I I really
42:34 concentrate on that during the day I
42:36 really believe in this um call the
42:39 markets and just watching the craziness
42:40 that's going on in the world is how it
42:43 El like keep busy yeah sounds good I
42:46 mean if you can spot this in events or
42:47 have alloy it makes a big difference and
42:49 your allers of course you send on the
42:50 trasers it's kind of very cool so uh a
42:53 lot of stuff there it it it's cool it's
42:55 very it's it's I don't think you know
42:57 many people do that I think it's
42:59 important to be in front of the computer
43:00 and not everybody could be in front of
43:02 the computer for these setups so I'm
43:04 happy I'm not even want to be in from
43:06 the computer too it's a question of
43:08 wanting to do it or or not yeah exactly
43:11 G me to what you have left and I think
43:13 we can wrap this up but we go a lot to
43:14 do so it's pretty awesome yeah well I'm
43:17 just going over some of these you know
43:18 everything this is kind of the the ideal
43:20 setup and if you find a channel just to
43:23 help people out here if you find a
43:24 channel look for a Divergence in it
43:26 that's going to be your Chann Channel
43:27 breakout every single time you know if
43:30 you have a recognizable Channel which
43:32 which we talk recognizable we're talking
43:34 about a defined channel one two three
43:36 pattern and you have a the low the end
43:38 of the pattern you have a low and a
43:39 lower low and a higher low and a
43:41 stochastic nine times out of 10 that
43:43 channel will break out to the outside
43:45 I'm not predicting how far it's going to
43:46 go but I do predict that if you buy the
43:49 low and you have a Divergence on a
43:50 candle will break out of the channel so
43:52 we know there's a big move here and that
43:54 happens so often and that's what we just
43:57 have to wait for and in every situation
43:59 just kind of very important place your
44:01 stop right on the candle low it's so
44:03 easy to do that I wanted to go into coil
44:06 divergences there's a lot of Divergence
44:07 stuff that that I I do but that's about
44:11 it and the flags you know we talked
44:12 about that rotation if the 6010 is
44:14 embedded and you have a fast rotation
44:17 that's called a bare flag and it's much
44:19 different than you know this is a
44:21 scientific mathematical way of you know
44:24 looking at a bare flag it's not about
44:26 just looking at the flag and saying it
44:28 looks like a bare flag I know it's a
44:30 bare flag because I know uh the
44:32 internals you know I know what I'm
44:33 seeing on the internals um and it's very
44:36 easy now to identify a pure a real bare
44:39 flag oh that was the Voxer Network I I
44:41 put that on there just to let people so
44:43 I'm sending out those alerts but you
44:45 guys hopefully get some information on
44:47 that and that I think that was about it
44:49 at the end that's all I was going to
44:51 cover today cool stuff I mean we we
44:53 cover a lot here people can definitely
44:55 watch a few times on to take notes and
44:57 we'll have the slides in the show notes
44:58 people can download them and go through
45:00 this if they want to what can they find
45:02 you connect with you if they need more
45:03 info about what you do or they just want
45:04 to learn from you and trade with you oh
45:07 yeah absolutely of course I always like
45:09 giving back to you um so all your
45:10 subscribers I got a link um
45:13 www DTR that stands for day training
45:18 rd.va and it's a free uh two we pass
45:22 into the site you get all the alerts you
45:23 get attached to everything you get watch
45:26 the Bots have so much on on the site
45:28 chat rooms you get access to everything
45:30 so feel free to come over there and just
45:32 uh ask me for anything the templates the
45:35 Pres PowerPoint presentations and che
45:38 check out the uh you know check out the
45:39 community we have hundreds of Traders
45:40 trading every day together awesome so is
45:43 John Kisco have a giant passion for
45:45 trading he's really good at what he does
45:46 I always sharing a lot of value here for
45:48 people I really appreciate that and
45:49 hopefully joh can catch up and see how
45:51 you doing in the future Dan I love I
45:53 love U the feedback I get from you so
45:55 thank you very much and uh have a great
45:58 one
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