| The "P" in TPS: Pattern Next, you need a clear pattern. Why look for a pattern? Once you've seen a particular pattern enough times, you have a good idea of how a stock is going to behave after it appears. This gives you the opportunity to grow more confident in your trades. Case in point... In the chart below, you'll see a flag pattern on the right. For those of you who haven't traded before, this pattern is called a "pennant," and it's among the most consistent patterns you'll see when doing chart analysis. Other common patterns include a bearish flag, bullish flag, and ascending or descending triangle. If you don't see a common pattern within a chart, then scrap the trade entirely. You should be able to see a pattern both quickly and clearly. If you spend more than five seconds looking for the pattern, there likely is no pattern! However, if you notice a pattern you've seen before and you're confident in how the stock will behave, then you have the second letter in the TPS system. We're almost there. Now let's get to the final component. The "S" in TPS: Squeeze The last component in the TPS system is a squeeze. And no, I'm not talking about a short squeeze. I'm talking about an indicator. Every chart I share with you is going to have this indicator at the bottom. See below... See that red area circled inside the rectangle? This is known as a "squeeze indicator." The truth is... every stock is like a long-distance runner. The initial move up is like the first leg of the race. The stock is moving quickly in one direction. It also has periods when it's resting and showing more sideways action. This is when the red dots appear. What we want to do is get into the stock during this "rest phase." We do this because the rest period is when the volatility on the stock is compressing - and getting ready for the next "leg" of the race. After you see a clear squeeze, you can be confident that the stock has had a chance to rest and is ready to continue in the direction of the trend. So when you see these red dots, you'll know you have a squeeze. Those are the three components of my TPS system. So, the next time you're making a trade, follow this checklist. First, do you have a trend? If the chart is moving from the bottom left to the top right, it's trending higher. If the chart is flowing from the top left to the bottom right, it's also trending... but it's trending lower. We can make money in either direction. Next, do you have a pattern? If you see a familiar pattern on the right side of the chart, then you've cleared the second step. Lastly, do you have a squeeze? Do we have red dots on the squeeze indicator? If so, then boom. You have all three clear components for making a trade. Below you'll see an example of what all three green lights look like in one chart. Bottom line: I'm really proud of this system. It's the exact process I used to turn a $37,000 account into $2.7 million in under 4 years. And today, I have an exciting announcement for you. Next week, I'm opening the doors to my Daily Profits Live chatroom for FREE for 5 straight days. It's all part of my Daily Profits Live Open House. I've only given FREE access to my live trading platform once this year. Back in April, open house attendees had the opportunity to make a trade on B Riley Financial (RILY) that led to a 1,128.92% return in two trading days! And I will be looking for more of these big trade opportunities in next week's open house. Don't miss out on this free opportunity to join Nate for FREE for 5 days and get access to another massive potential winner. Click here to get on the guest list to Daily Profits Live Open House today. Yours in smart speculation, Nate | 
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