On occasions I will post some mentoring session notes and recaps to highlight important rules that need to always be reviewed hope this help some beginners. This was a good overviewer foundation session for a newer trader just starting off. Enjoy
Key takeaways
Trading success requires discipline, patience, and recognizing specific setups like quad divergences
When analyzing charts, focus on closing prices
rather than candle tails/shadows
The "quad divergence" is considered the "Holy Grail" setup for trading
Trading under the 200-period moving average indicates a confirmed downtrend
Taking profits consistently on small gains is more reliable than seeking large wins
Bear flags in downtrends and bull flags in uptrends are important patterns to recognize
Discussed topics
Trading with stochastics and divergences
John explained his approach to trading using
stochastic indicators and divergence patterns.
Details
John: Explained the 60-10 rotation represents the 5-minute timeframe when viewed on a 1-minute chart
John: Emphasized that divergences occur when price makes a lower low but stochastics make a higher low
John: Recommended using the 20 line on stochastics as a marker for divergence identification
Thea: Asked about whether there
was a divergence in a specific chart pattern
John: Clarified that when analyzing divergences, traders should focus on closing prices rather than candle shadows/tails
Quad rotation and divergence
John explained his preferred setup combining quad rotation with divergence patterns.
Details
John: Described the "quad divergence" as his number one setup and "Holy Grail" pattern
John: Explained
that a quad divergence occurs when all stochastic indicators align with a price divergence
John: Demonstrated how to identify this pattern using chart examples
Thea: Asked if John always takes trades when he sees a quad setup
John: Clarified he specifically looks for quad divergence setups rather than just quad patterns
Bear flags and bull flags
Discussion of how to identify and trade flag patterns in trending
markets.
Details
John: Explained that bear flags occur in downtrends and bull flags in uptrends
John: Described how the 60-10 stochastic represents the bigger trend while the 9-3 shows shorter timeframes
John: Noted that when trading under the 200-period moving average, traders should focus on shorting opportunities
Thea: Asked for clarification on bear flag versus bull flag
identification
John: Explained that embedded stochastics (staying above 80 or below 20 for extended periods) indicate strong trends
Running divergences
John explained an advanced divergence pattern called running divergence.
Details
John: Described running divergences as two consecutive divergence setups
John: Explained that in a running divergence, price makes a new low but stays above the
first divergence low
Thea: Confirmed her understanding that it's when a divergence doesn't take off initially but then diverges again
John: Noted these patterns often "flush out" traders before making a strong move
Trading psychology and discipline
Discussion about the mental aspects of successful trading.
Details
John: Emphasized that trading is mentally challenging and requires
discipline
John: Advised taking profits consistently rather than trying to maximize every trade
John: Compared trading to professional gambling, where success comes from following strict rules
Thea: Mentioned they don't gamble in general, which John noted was a positive mindset for trading
John: Stressed that most trades should be quick (2-3 minutes) rather than held for extended periods
Trading
platform recommendations
Brief discussion about trading platforms and tools.
Details
Thea: Asked if John recommends NinjaTrader over other platforms
John: Suggested NinjaTrader would be good for them since it's available in their country and can be used for free
John: Mentioned his use of bots on NinjaTrader to identify setups and alert him to opportunities
Analysis of Thea and Callum's
crypto chart
John analyzed a cryptocurrency chart shared by Thea to identify patterns.
Details
Thea: Shared a screenshot of SUI cryptocurrency chart
John: Identified several divergence setups on their chart
John: Pointed out how focusing on closing prices rather than tails would help identify better setups
Thea: Confirmed John's method has been working well on the SUI
cryptocurrency they're trading
Challenges
Distinguishing between valid divergence setups and false signals in volatile markets
Trading during news events can create unpredictable price movements
Knowing when to take profits versus letting trades run
Identifying proper setups in real-time versus seeing them in hindsight
Managing the psychological aspects of trading, especially when trades don't work out
Action
items
Thea/Callum
Look into NinjaTrader platform for potential use
Study bear flags and bull flags in more detail
Consider taking John's high probability setup course
Experiment with chart settings to make candle tails black or turn them off
Book another session with John after gaining more practice (after Christmas)
John
Email a recap of what was covered in the session with additional notes
Look into
patterns on the SUI cryptocurrency chart on other platforms
That is all..carry on