Stock futures are pointing to a higher open this morning. And just like that, the market appears to be making another run to all-time highs.
What a wild, choppy, news-driven market its been over the last month…making it a tough market to trade.
As for me, I was finally able to string some good trades together yesterday (the last weeks for me have been a struggle), getting base hits in WKHS and WATT.
(Can you spot the horizon line? Jump straight to 1:00:14 of this video to learn more about it.)
While it’s nice to be able to get back on track finally… I would be doing you a disservice if I didn’t tell you what is working for traders in this market.
Maybe you’ve heard me talk about Nathan Bear, the 15 +100 options winners he had last week, or what MRM clients have been saying about him.
(Nathan Bear struggled for EIGHT years but…he is now approaching $2M in trading profits after joining MRM in less than 3 years. Nathan teaches others how to trade his system in the Millionaire Roadmap chat room. Not in MRM? Join Now)
That said, today we’re going to be studying one of the setups that Nathan has been using to score all these incredible wins. It’s called the Trend, Pattern, Squeeze (TPS) system. And you’re going to learn all about it right now.
Trend, Pattern, Squeeze (TPS) Explained
There’s one question that everyone’s asking… How did Nathan Bear knock down 15 +100% last week?
Well, it’s simple… by following his Trend, Pattern, Squeeze (TPS) system, remaining patient, understanding the psychology of a winning trader, and staying humble.
Now, he didn’t just discover this system and keep it to himself like many other traders do… he actually shares it with clients in Millionaire Roadmap and Weekly Money Multiplier – providing hours of lessons about the TPS system, as well as trading in general.
A lot of people have been asking and wondering about this pattern, so I figured it’d be a good idea to show you how he uses it… however, I’m not Nathan Bear and if you really want to learn how to use his system, you can ask him yourself.
That said, let’s take a look at the TPS system and two in depth case studies about his +100% winners.
How Nathan Uses the TPS System
Now, for the most part, I trade momentum stocks and focus on patterns, value, and catalysts. If you didn’t know, Nathan was once a Millionaire Roadmap member, before he became a teacher and moderator.
Just by teaching him how to trade, that sparked his curiosity to learn more about the markets… until one day, he found a three-step system to find options trades… and now he’s knocking down triple-digit winners, alongside Jeff Bishop (kudos to you guys for your milestone, locking in 50+ triple digit winners in just a few months).
Moving on.
What Nathan likes to look at is the overall trend.
Here’s a look at the daily chart of the iShares Russell 2000 ETF (IWM).
You’ve got three types of price action here:
– Uptrend (when the stock is making higher highs and high lowers. In other words, the price of the stock is trading higher over a specified period).
– Consolidation (when the stock is trading in range, bouncing around a support and resistance level).
– Downtrend (when the stock is making lower highs and lower lows. The price has been dropping).
Now, understanding trends is very important… and Nathan knows that.
So when he identifies a trend in a stock… the next step he’ll look for is a specific pattern.
Look for A Pattern
When you’re trading stocks, knowing bullish and bearish patterns help a lot.
For example, here’s a look at the daily chart on Blue Apron (APRN) – and I actually traded this stock with this setup.
This is known as the bull flag or bull pennant setup. Basically, you see a strong move in a stock… followed by a period of consolidation (where the stock is just bouncing between levels).
Generally, when we see this pattern… the stock tends to breakout and run higher, which was exactly what happened with this stock.
Now, Nathan might not be looking at the same patterns I’m scanning for… but sometimes, we recognize the same patterns, like the bull flag setup (which we’ll go over in the case study later).
After he finds the pattern… he looks for the squeeze.
The Squeeze
We’re not talking about a short squeeze here, we’re actually talking about an indicator known as the TTM Squeeze.
For example, take a look at this chart in Paycom Software (PAYC).
This was the same chart he was looking at in PAYC.
Notice the histogram below the candlestick chart?
That’s the TTM Squeeze indicator.
When the bars are above the zero line… that indicates the stock has positive momentum… when the bars are red and below the zero line… that indicates the stock has negative momentum.
Then, there are little red and green dots right around the zero line… indicating the stock’s volatility is compressing and could be ready to make a move.
You can actually learn more about the TTM Squeeze at Millionaire Roadmap, as Nathan has uploaded a video on there… as well as dozens of others about trading, charts, psychology, and so much more
Now, let’s jump right into things
If you look at the chart above, PAYC has been on and absolute tear… and just started to pull back. Well, if you remember what we were talking about with the bull flag / pennant setup?
This kind of looks like that a bit, right?
Nathan was actually anticipating the stock would start to “squeeze” and gain momentum… and break out to highs.
Three Letters: TPS.
Just by looking at that he was able to spot this massive runner.
He even let clients know when he was closing out of his position.
(Millionaire Roadmap clients can see a live stream of Nathan’s screens… and ask questions to him in the MRM chat. If you’re interested in learning about Nathan’s three-step system, click here to get started.)
Now, let’s continue with another case study.
Here’s a look at the 130M chart in Roku Inc. (ROKU).
ROKU has just been relentless, completely ignoring the market volatility. It’s been clearly trending higher… and it started to form a bullish pattern.
If you look at the chart above, Nathan knew it had a nice pattern (the bull pennant)… and if you look, there was a TTM Squeeze setup. Not only that, there was a psychological level at $100, that Nathan thought would act as a magnet.
Well, here’s what happened with ROKU (this is a 2H chart).
Now, here’s Nathan’s profit and loss (PnL) in the trade.
By just looking at the trend in a stock… looking for the right pattern…and then looking for a squeeze, Nathan Bear was able to knock down 15 triple-digit returns last week.
Now, if you’re looking for an easy-to-follow system that consistently generates triple-digit returns… fast…
Millionaire Roadmap gives you access to that, as well as hours of training videos from Nathan Bear and myself… as well as real-time text and email alerts, and a chatroom where Nathan Bear live streams his trading. If you’re ready to take the next step, click here to get started.
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