I love to see traders nail the patterns I teach, even when I’m not around to point them out.
That’s the ultimate goal of what I do…
I want to help you become a self-sufficient trader. Because even though I’m in chat every day and I give live webinars twice a day — I can’t hold your hand every second of the day.
Eventually, you have to learn to do it for yourself.
That’s exactly what some Daily Income Trader members did yesterday morning…
They saw the premarket pattern we look for setting up and many of them got in before I even went live on Pre-Market Prep. By then the stock was up 40% from the ideal entry.
So today I’m breaking down what pattern they saw, how you can spot it for yourself, and how it can help you time your entries and exits.
What a Perfect Premarket Pattern Looks Like
There’s no better way to learn this stuff than with daily repetition — by showing up every day, seeing the patterns that work, and knowing what to look for.
That’s how you get to self-sufficiency — the ultimate goal.
That said, let me show you how one of our favorite premarket patterns played out — again.
I wrote about this pattern recently … But this is your repetition lesson so you know what’s working and what it looks like.
This is the five-minute candle theory playing out…
PRSO chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
You get a gap up with a big green candle, then the five-minute red candle. Once that red candle is in place, you can plan your entry and risk levels around the red candle’s body.
Once the stock spikes, you can use the same theory to plan your exit.
If you find yourself selling too soon and miss the big moves. Or if you often turn winners into losers — this can be a great pattern to help you exit trades.
Waiting for the first five-minute red candle after a big run helps you let your winners run.
And exiting when the stock breaks below the first five-minute candle body helps you lock in profits before the big momentum swing pushes it lower.
But like any pattern you trade, you still need to line up other criteria.
Peraso Inc. (NASDAQ: PRSO) checked the boxes. It had:
- Low float
- Solid News
- Great volume
- Float rotation
It was just a picture-perfect move in a premarket spiker that has the criteria we look for. And I’m so glad so many members caught a piece of it — even without my help.
That’s the goal.
And it’s the absolute superpower of daily repetition.
You can’t grasp these concepts and patterns quickly if you only get mentorship and lessons once a week or once a month…
That’s why I go live twice daily in the Daily Income Trader system.
I help traders learn to spot these setups daily. And when you show up every day and start seeing them play out in real-time, you learn to spot them for yourself.
I’ll be live again twice today and in the chat room all day — join me here.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade