As far as stocks go:  The core premise of our style of trading is that when you combine two parts momentum with one part of time ('price in time') or Vector (VR), you can identify stocks with the potential for explosive price squeezes...

The essence of a formula I developed over decades of reverse-engineering big winning stocks goes like this:

There are 3-parts to a ‘momentum formula’ in identifying optimal price reversal zones on just the right stocks displaying just the right ‘math’ driving its price action. 

A measurement of: 

Momentum: 

-How far (BMI) 

-How Fast (Vector) 

-In what amount of time (TSS Cycle) 

And having this formula can almost act as a template to compare the potential of one stock to another.  With over 6000 stocks in the market, you need an edge if you want to excel.  

Just to give you a visual on the power of this ‘template.’  

Below is a powerful price squeeze setup near one of my favorite price zones, the C-2 & C-3 price zones ($10  & $12.50).  

Some of the most powerful breakouts each year come from these price zones.  

CVNA rocketed to a 360% gain in just a few short months (and over 1200% gain in the next year) out of this price squeeze:

By using the correct cycle-based trend lines with the correct ‘math’ (BMI & Vector) at the correct price  point (Price Zones), is how to get out of a trading rut (if you are in one) and to stop trading blind!

If you know anything about index trading, an $11 move on SPY can be a mega mover on the options,  especially if the price advance is condensed into a short time period (ex: same day). 

Once CAT-3 was set at BT-2 and price revisited the lows of the channel at BT-3 and confirmed support, the price was off to the races. 

Finding these “Higher Time Frame” cycle-based price squeezes on the 5’ time frame and drilling down to the 1’ time frame intraday, can give you very tight and safe entries (I can usually get my risk down to 10-15% on the trade after just a few minutes into the trade) which can (after you gain real-world experience) allow you to ‘crank the size.’ For example, starting with a $500 account and putting 50% of the account into the trade (this is only for small accounts! risking $25-$37) and making a trade like the next one for 650% in just a few hours can turn your $250 stake into $1625 for a 650% gain!

Where else do you know that you can realistically turn $25-$50 risk capital into $1500+ in a few hours?  Not too many places… 

And then there will be those days (not abundantly) when the price action goes off the charts and can give you lottery like gains on 0-DTE options for example on May 31st, 2024, here is what an SPX 0-DTE option could have done trading a $100 max loss position: 

Do you think that if you captured just 1-2 of these A YEAR that it could significantly alter your trading  results!? I’m sure it would… 

And the reality is, if you are capturing the breakout at the actual turn zone the real risk on the trade can be as little as 10-15% initially or $10-$15 to make $38K… 

And yes, these are not always easy to catch but you put the odds in your favor of eventually nailing one of these beasts by: 

Analyzing prior breakouts: 

-Day of week 

-Particular news days (FOMC, CPI, Jobs report, etc.)  

-Hourly and short-term cycles leading up to the ‘price squeeze’.. 

-Teaming up with other traders watching for these setups so that you have more eyes on these possible breakout zones. 

Here is an example of the power of TSS Cycles on the higher time frame. This is a breakdown of the 4- Hour CAT Cycles on the USD/JPY Forex pairs (Forex but yes, they move similarly). 

In fact, on the 2nd cycle trade, five lots traded would have been good for $9300 or 186% of the $5K margin required to trade 5 lots in just a few days… 

Putting on multiple lots at these higher time frame cycle squeezes can be a way to quickly build up your trading account.

Just as selectivity in buying stocks can reduce your risk and exposure, it can do the same on intraday charts day trading. 

“H Channels” on just about any index or stock can be a powerful way to ‘turn down the noise’ and focus on the big picture. 

I discuss these “Big Cycles” and the markets’ Hidden Grid on not only stocks but on futures in the following video:

Using our TSS Cycle based strategy on just one of the several -H Channels that set up today on NQ was good for 120 points in just 25 minutes. $2400 per contract and $9600 on four contracts.  

Do you see the power of selectivity and waiting for these channels to form? 

Although you could have scalped intra-channel for very nice gains, just waiting for the channel completion and entering at CH-4 offered big gains and quick resolution. 

Here is another one from a few days prior:

This run was good for $9200 per contract or $27,600 on 3 contracts in just 2 days…can you do this at your current job lol…!? 

Using TSS Cycles on the hourly time frame and drilling down to tighter entries on smaller time frames (1 to 5 minutes) can dramatically increase the reward-to-risk ratio in your favor. 

Quite often, the best traders end up being the ones who trade less and use an ‘edge’ to stay out of the market until everything lines up. 

This is one of the advantages of using TSS Cycles. It limits the number of trades you do (unless of course you really want to be scalping ferociously-mostly unnecessarily speaking from experience).  

When you are skilled enough to grasp the big picture, drilling down to the smaller time frames and finding even tighter entries (15-Second bars here below) and automating the entries as we have done with our  trade robots can vastly improve your ability to manage risk and catch big runs.

Our 15-second robot is set to buy a breakout of X number of bars high (2) below once we see CAT-3 set and adjust the stop to half by bar 3 (only 45-seconds into the trade) and to breakeven by bar 8 (2 minutes into the trade).  

PUSH A BUTTON-MAKE MONEY! The initial risk on this trade based on the stop size is $90 per contract and reduces to $60 by bar 3 and down to zero by bar eight. The trade was good for 48 points on this trade or nearly $960 or a 10-1 reward to initial risk…how do you like those numbers!? 

I use the same strategy without the robot on SPY & QQQ options but will eventually have one coded for it also. 

That is how I am able to quickly reduce risk to near zero just minutes into a trade. 

My new robot under construction can be turned on sometimes an hour ahead of the trade entry and waits for specific criteria that generally only occurs near these CH-4 turn zones. 

How would you like to push a button and leave the computer and come back a few hours later to see that you are now $2,000 richer and all you had to do was push the button!?