The 3 Scalping Setups That Make Me A Living - John Kurisko

Finance-specific summary (scalping setups & framework)

The speakers discuss a rules-based scalping/day-trading “business plan” built around Stochastic Oscillator signals—specifically a proprietary “Quad Rotation” using four stochastics—and Stochastic Price Divergence. The objective is to reduce emotion and overtrading by only taking setups that meet exact conditions.

They focus on US market hours/overnight trading, primarily using E-mini S&P futures (especially the micro contract).

Instruments / tickers mentioned

Futures

• MES (Micro E-mini S&P 500 futures) — primary scalping instrument
• ES (E-mini S&P 500 futures) — sometimes used for larger exposure

Stocks

• Apple (AAPL) — mentioned as an example where divergence could potentially work well

Not explicitly traded/identified

• No crypto, ETFs, bonds, or other equities were specifically named as traded.

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Core methodology (step-by-step / checklist style)

“Business plan” rules (process to avoid gambling)

Before entering any trade, the plan requires predefined components:

• Order criteria
• Profit/exit criteria
• Automatic stop criteria (where/when the stop goes)
• Risk management
  • position sizing
  • adding/removing size rules
• Chart setup/tools

Emphasis: discipline + patience; avoid overtrading/gambling. Principle: only take setups that match the exact conditions—otherwise wait.

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Indicator system: Stochastics + “Quad Rotation”

Built around Stochastics developed by George Lane (1950s).

Proprietary concept: “Quad Rotation”

• Uses four Stochastic bands (four lookbacks).
• Parameter fragments were mentioned (e.g., “9/3/4/3/44/60/10” style), along with two key described elements:
  • A “fast” stochastic (referenced as a 93 combination on the chart)
  • A longer-timeframe stochastic mapped as “6010” (described as tied to 5-minute behavior)

Quad Rotation definition (timing filter)

• All four bands oversold under 20 at the same time → that simultaneous alignment is considered a quad rotation.

Goal: multi-timeframe confluence to increase odds of bigger moves.

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Setup #1 (main “Holy Grail”): Quad Divergence

This is the primary setup combining:

1. Quad Rotation (multi-stochastic alignment)
2. Stochastic Price Divergence (momentum turning before/against price continuation)

Stochastic Price Divergence (as explained)

Divergence is described as a mismatch between:

• Price action (e.g., double tops / lower highs)
• Stochastic momentum (e.g., higher highs in the oscillator or earlier turning)

It’s framed as momentum “drying up” before price turns.

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Entry / confirmation (buy-side sequence)

1. Stage 1: All four stochastics drop below 20
2. Stage 2: Price makes a small bounce, and the 93 stochastic bounces slightly
3. Stage 3: Price drops back to an equal or lower level
   • The 93 turns back up above 20

Entry rule: enter when the 93 stochastic turns back up (confirmation).

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Stop-loss

• Stop placed 1–2 ticks under the pattern low
• Emphasis is on putting the stop right beneath the signal candle/pattern low
• They claim it “fails” quickly if wrong (i.e., divergence setups should not be allowed to linger)

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Profit expectation

• They repeatedly claim very high probability when confluence aligns:
  • “95% of the time” was stated for the combined conditions (with acknowledgment that news can disrupt outcomes)
• They also describe the approach as producing “daily income” with selective trading, mentioning ~3 setups/day as an expectation.

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Position sizing / instrument scaling

They describe scaling exposure when conditions strongly align:

• Example: trading 5 MES but switching some trades to ES for larger exposure when appropriate
• Rationale: “this is where you’re going to make your money.”

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Setup #2: “2020 Bull Flag” (continuation setup)

Conditions described

Trend / push phase

• Futures price aggressively moves up off the 20 EMA
• The move is steeper-than-average (the “flag pole”)

Pullback filter

• Price pulls back toward/into the 20 EMA
• The 6010 stochastic remains embedded above 80 (described as “embedded,” meaning the trend strength persists)

Stochastic trigger (buy timing)

• As price holds the 20 EMA, 93 stochastic rotates down toward 20
• Buy when 93 hits the 20 described as the “weakest point before it starts turning back up”

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Stop / management

• Stop logic is referenced more generally as being around the relevant candle/pattern low (with timing emphasis carried from the earlier setup section)

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Timeframe scaling

• They state the concept works across timeframes.
• The 6010 is specifically tied to 5-minute behavior.

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Setup #3: Bear Flag (short-side mirror)

A rule-based approach to avoid bad counter-trend trades and to define a short/exit condition.

Core idea

• If the bigger trend is bearish:
  • don’t counter-trend buy
• A “bear flag” is defined using stochastics behavior:
  • Watch 93 rotation and 20 EMA
  • Sell every time 93 gets up there (i.e., rotates up in a bearish context)

Additional qualification / exit logic

In downtrending conditions:

• If 6010 stays under 20 around the bottom (instead of rising toward higher levels like 90/85/80) → it signals bearish larger-trend strength

• Then you sell rotations that meet the 93/flag trigger.

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Risk management & performance cautions (explicit)

• Stops must be placed immediately/appropriately (no “gambling” and no “letting it come back”)

• Overtrading is called a major failure mode; the framework is intended to prevent it.

• The setups are claimed to be high probability but not immune (news risk remains).

Claimed improvement method

They claim they developed a rule to identify when setups get weaker and eliminate ~50% of losers. Example given: if they had 7/10 successes and 3 losses, then the rule eliminates about 2 of the 3 losses.

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Key numeric thresholds and parameters mentioned

Stochastic thresholds

• Oversold: under 20
• 6010 embedded strength thresholds:
  • Above 80 for bull-flag embed condition
  • “85 preferably 90” mentioned as stronger-trend preference
• Bear-side larger trend condition:
  • 6010 under 20 indicates larger trend down / lack of bullish reversal strength

Moving averages

• 20-period EMA — pivot for bull-flag behavior
• 50 EMA and 200 EMA — referenced in chart template context
  • bearish trend under the 200 EMA was noted

Stops

• 1–2 ticks under the pattern low for the divergence setup

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“Super signals” / alert service (execution support)

The host describes sending trade alerts via the Voxer Network app to help avoid missing setups.

Example alert contents included:

• 12:18 p.m.
  • reference to “143 divergence”
  • buy-side divergence
  • levels referenced around 5455 / 5454
  • stop referenced under 5450 (session lows)
• 1:28 p.m.
  • a follow-up/action timestamp mentioned

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Disclosures / disclaimer

• No explicit “not financial advice” disclaimer was included in the provided subtitles.

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Presenters / sources mentioned

• John Kurisko — guest (host of Day Trading Radio)
• Anthony / “sing Anthony” — interviewer/co-host
• George Lane — credited with developing Stochastics (referenced as in the 1950s)