Having traded for thirty years, my biggest realization is: this is not gambling, this is business. Business requires standardization and repeatable processes. Most people end up losing money because they are too casual and lack a set of disciplined rules to follow.

The system I use is called the Fourfold Rotation, which centers on confirming signals through multiple indicators layered on top of each other, then strictly entering and exiting according to the rules. Today, I’ll share the complete framework with everyone.

**Building the Toolset Library**

On the chart, add four stochastic indicators with parameters set to 9-3-1 (to catch the fastest swings), 14-3-1 (quick momentum), 4-4-1 (medium pace), and 60-1-1 (to capture larger cycles). These four indicators act like different magnifying glasses at various scales, allowing you to sense signals of price reversals in advance. Plus, add three EMA lines—20-period for short-term, 50-period for mid-term, and 200-period for long-term—to judge the overall trend.

**First Super Signal: Divergence Structure**

On 5-minute, 15-minute, or 1-hour charts, when all four indicators drop below 20, pay attention to whether the price has made a new low. The key point: if the 9-3-1 indicator does not make a new low—that’s a bullish divergence, indicating weakening downward momentum. When the 9-3-1 curve turns upward, that’s the entry point for a long position. Place the stop-loss below the divergence low, and aim for at least a 1:1 risk-reward ratio.

The opposite also applies. When all four indicators are above 80, and the price hits a new high but the 9-3-1 doesn’t follow (top divergence), and the 9-3-1 starts turning down, that’s a shorting opportunity. Stop-loss should be set above the divergence high. Remember: don’t rush into the trade; wait until all indicators confirm before acting—this is key to avoiding false signals.

**Second Super Signal: Flag Pattern**

Bullish flags look like this: price stays above the 50 EMA, then pulls back to around the 20 or 50 EMA, while the 9-3-1 indicator approaches 20. At this point, pay special attention to the 60 indicator: if it remains above 85, it indicates that big funds haven’t exited—they’re just shaking out weak hands. When the price touches the 20 EMA and the 9-3-1 also hits 20, it’s a window to add to your position. Why is this timing reliable? Because a high 60 indicator suggests main players are still controlling the rhythm, and the pullback is just a trap for shorts. My usual approach: when the 9-3-1 crosses above 80, take half of your position off, and move the stop-loss to breakeven for the remaining position.

Bear flags follow the opposite logic: when the price drops below the 200 EMA, and both the 60 and 44 indicators are below 20, and the 9-3-1 rebounds to around 80—immediately short. If you’re still holding long positions, that’s a clear signal to exit.

**Risk Discipline is the Bottom Line**

I never test a new system with real money initially. It must be backtested over 100+ times with historical data to verify the logic. Once live trading begins, if the divergence structure is broken, exit immediately—don’t hold onto false hope. Set profit targets and stick to them; greed is the most common way to self-destruct in trading. Keep a trading journal and review regularly to identify issues.

Stop-loss is not a suggestion; it’s a discipline you must obey. You can lose money, but you cannot violate your own rules.

**Path for Beginners**

Start with 1-2 months of simulated trading to fully understand how this system performs under different market conditions. Then backtest at least 100 real data points to ensure your win rate and risk-reward ratio meet expectations. After that, verify with small real funds, and only increase position size once you see consistent profit curves. Slow is fast, and stability wins—this is my deepest insight after thirty years.

**Summary**

The power of the Fourfold Rotation lies in multiple independent indicators confirming signals, which filters out many false signals. Clear entry and exit rules prevent reliance on intuition. Strict risk management ensures that even if you’re wrong, the losses are limited. Trading is a business, and a business needs SOPs—follow the procedures.