If I Could Only use ONE Trade Indicator, It Would be This

By Nathan Bear

May 8, 2025

Yesterday, I joined Chart Whisperer JC Parets in MTA Live for our “Portfolio Booster Pack” event.

It’s always interesting to see another trader’s process.

And while JC has more formal education than me – I’ve learned all I need to do in order to make consistent winning trades is follow price action.

Sure, I benefitted from some great mentors along the way.

However, it wasn’t until I learned how to read charts that I saw my trading level up.

The truth is… charts always show you where all the money is.

They also make trading a lot simpler.

For example, I use three basic indicators in my TPS system (trend, pattern, squeeze).

But if I could only choose price chart indicator, it would be this…

My Favorite Chart Indicator – The Squeeze

A squeeze is a period of low volatility, followed by a potential explosive price movement.

It doesn’t matter what kind of chart I’m looking at.

It can be a daily chart or a 5-minute chart – I’m still looking for a daily squeeze.

Squeezes help me time my entry for when that explosive move could come.

But it gets even more powerful when I start looking for “short squeezes.”

These “short-squeeze” plays have potential for massive gains in a stock.

Here’s how to identify them…

How to identify a short squeeze

All my biggest trades (the 300, 400, 500% gainers) have come from identifying a short squeeze.

But a short squeeze is different than a traditional squeeze.

Short squeezes happen when a large amount of traders “short” a company.

If you’re “shorting” a company, you make money if the stock goes down.

But if you’re long on a company, you make money if the stock goes up.

So how do you know if a lot of traders are shorting a company?

First, identify the “short float”

A short float is the percentage of shares in a company that’s been shorted (meaning investors think the price is going to go down).

So, let’s say you have 100 shares of a company – for a normal stock the short float is like 5% or less. But in some cases, you have a short float of 30%-40%. So that’s 30-40% of people are making bets against the stock.

I’ll show you example of a big short float below: HIMS

HIMS had a 33% Short Float in April

Take a look at this recent short squeeze trade I made on HIMS.

(And this beautiful chart layout is from JC’s TrendLabs team…)

HIMS had a 33% short float – that’s massive.

When a stock like HIMS has a massive short float, it means a ton of traders are betting against it.

They’re shorting the stock, which basically means they’re borrowing shares, selling them at the current price, and hoping to buy them back later at a lower price to pocket the difference.

But here’s where things get wild…

When the stock starts to move higher — like what just happened with HIMS — those short sellers start to panic. Why? Because if the stock keeps rising, their losses become unlimited.

To stop the bleeding, they’re forced to buy back the shares they borrowed, no matter the price. And when a ton of short sellers all rush to buy at the same time? That’s what we call a short squeeze.

It’s like throwing gasoline on a fire — the buying frenzy pushes the stock even higher, which forces more short sellers to cover, and the cycle continues. Shares spiked when this deal was announced: which created a massive squeeze.

How Daily Profits Members Profited

I noticed the short float ahead of time and got positioned on HIMS a few days before the news was announced.

I ended up closing the trade for a 823% gain in less than 1 trading day.

And some Daily Profits Live members saw gains of more than 1000%!

Like wolfman…