Copyright 2001, Pristine Capital Holdings, Inc.

Co-Founder of Pristine.com, and Co-Author of the best selling

book, Tools and Tactics for the Master Day Trader

Greg Capra

With

Intra-Day Trading Techniques

Pristine.com Presents

Copyright 1994-2001 by Pristine Capital Holdings, Inc. All rights reserved. Printed in the United States of America.
Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or
distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of
the publisher.

Day Trading can result in large losses and may not be an activity suitable for everyone.

The authors and publisher assume no responsibilities for actions taken by readers. The authors and publisher are not
providing investment advice. The authors and publisher do not make any claims, promises, or guarantees that any
suggestions, systems, trading strategies, or information will result in a profit, loss, or any other desired result. All
readers and seminar attendees assume all risk, including but not limited to the risk of trading losses.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS.

UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL
TRADING. ALSO, SINCE THE TRADES IN THIS BOOK and SEMINAR HAVE NOT ACTUALLY BEEN
EXECUTED, THE RESULTS WE STATE MAY HAVE UNDER OR OVER COMPENSATED FOR THE IMPACT,
IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE
BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS
LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

It should not be assumed that the methods, techniques, or indicators presented in this book and seminar will be
profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples in
this book and seminar are for educational purposes only. This is not a solicitation of any order to buy or sell.

Table of Contents

Retracements
Support & Resistance
Market Timing

Psychological Requirements

Foundation

Multiple Times Frames

Pristine Buy & Sell Setup

Moving Average Interpretation

Candlesticks Simplified

Combining Foundation and

Key Concepts for Mastering
Intra-day Trading

Putting It Together

Candlesticks
Moving Averages

Four Styles of Trading

Day Trading Defined

The Key Concepts

Introduction

Table of Contents

Introduction

Introduction

Two Broad Trading Categories: Wealth; Income

Which fall into.

Four Styles of Trading: Core; Swing; Guerrilla; Day

Types of Trading

Four Styles of Trading

- 5, 15 & 60-Min.
- Minutes to Hours

- Daily Charts

- Days to Weeks

Day Trading

- Hours to Days

- Weeks to Months

Swing Trading

- Daily, 60 Min. & 30 Min.

Guerrilla Trading

Income Trading Styles

- Weekly Charts

Core Trading

Wealth Trading Styles

Two Broad Trading Categories

7) Day Trading is a style of trading that May not be suitable for ALL!!
ALL

6) Day Traders try to capture smaller gains with minimal dollar risk.
risk

5) Day Trading is best used on active, highly liquid stocks.

4) Day Traders use 5- & 15-Min. charts to make entries and exits.

3) This style of trading has become widely accepted recently.

2) Three forms of Intra-day Trading: Scalping Momentum Day

1) A style that covers a holding period of several minutes to hours.

hours

What is Intra-day Trading?

Intra-day Trading Defined

HOW

Patience

Discipline

Patience

Discipline

Becomes Your Job!

This builds a thought process which builds Confidence.

A systematic objective Method of interpretation is needed.

Subjective analysis must be reduced or eliminated.

Confidence

Psychological Trading Requirements

Psychological Requirements

Foundation

The Building Blocks

A Price Pattern: The Pristine Buy & Sell Setup.

Technical Tools: 20- & 200-period simple moving

averages.

Charting Tools: 5-, 15- & 60-Min. Intra-day charts

displayed in Candlestick form.
Color coded volume.

Tools of the Pristine Day Trader

Intra-day Trading Tools

The 15-MIN. Chart

Candlesticks

20-Period MA

Color Coded Volume

200 -Period MA

Intra -day Charting

Low

High

Bulls Win

Low

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Open

Body

Close

High

Bears Win

Close

Body

Open

Determining Who Won The Battle

The Battle between Bulls and Bears

Bottoming Tail - BT

Topping Tail - TT

Narrowing Range Bodies - NRB

Narrow Range Body NR

Wide Range Body - WRB

Changing of the Guard - COG

A high probability
opportunity may
exist to trade.

The probability of the

current trend changing
is increasing.

All give traders the

Same Message.

Six Candle Concepts

Simplified Candle Language

It offers high probability with low risk.

This combination of bars is a segment or smaller

part of the overall pattern.

It is a set of bars that occurs in a detailed formation.

The setup can be traded in all time frames.

Pristine Buy & Sell Setup Facts:

The Pristine Buy and Sell Setup

Close

Close

PristineSetup
Capital Holdings, Inc.
Buy

Open

Sell Setup

Open

The setup is complete after a reversal candle has formed.

Each new bar opens in the area of the prior bars close and also
closes above/below its opening price until a reversal of that occurs.

The Pristine Buy and Sell Setup

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These bars overlap each other and do not have the

predictability we are looking for.

This is NOT what we are looking for !

The Pristine Buy and Sell Setup

Congestion patterns are whippy

and unpredictable. Recognized by
overlapping candles and multiple
failures in both directions.

Price Pattern Recognition

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Long positions are considered when prices are extended Below the
20-MA on a 60-Min. but Above their 20-MA on the 5-Min. chart.

Short positions are considered when prices are extended Above the
20-MA on a 60-Min. but Below their 20-MA on the 5-Min. chart.

Short positions are favored when prices are Below their 20-MA on
a 60-Min. chart. Entry points are found on 5- or 15-Min charts.

Long positions are favored when prices are Above their 20-MA on
a 60-Min. chart. Entry points are found on 5- or 15-Min. charts.

Simple Moving Averages

Moving Average Guidelines

The 60-MIN. Chart

Favor Short Trades

When Prices decline

Below the 20-MA.

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20-MA

Long Term Intra-Day

Favor Long Trades.

When Prices rise

Above the 20-MA.

200-MA

Moving Average Guidelines

Bearish Trend

Extended

5-Min.Chart

Prices move
above 20-MA.

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20-MA

200-MA

60-Min.Chart

Moving Average Guidelines

20-MA

200-MA

Candlestick
Concepts

Pristine Key Concepts

Short or Narrowing range candles tell us volatility is low

or momentum is decreasing.

Long or Expanding range candles tell us volatility is high

or momentum is increasing.

Each candle will give us information that either confirms

or contradicts that trend.

Ask yourself, What does the current candle tell you about
the prevailing trend? Note: A trend = 3-5 bars moving in the
same direction.

Candlestick Concepts

Bullish COGs

Bearish COGs

Pristine Tip: While there are different variations, the message is always
the same ! A reversal in momentum has occurred!

A Bearish COG is defined as three or more consecutive

green bars followed by a red bar.

A Bullish COG is defined as three or more consecutive

red bars followed by a green bar.

Changing of the Guard Bar - COG

Candlestick Concepts

Narrowing
Range Bars

Pristine Tip: While there are different variations, the message is

always the same ! A slowing in momentum is occurring!

A series of bars in which the difference between the highs and lows is
Narrowing.

Narrowing Range Bars - NRB

Candlestick Concepts

Narrow Bodies

Narrow Bodies

Pristine Tip: While there are different variations, the message is

always the same ! A slowing in momentum has occurred!

Bars in which the body of the candle is small relative to the overall length
of the candle.They may have Tails on either side of the body.

Narrow Range Bodies - NR

Candlestick Concepts

Topping Tail

Pristine Tip: While there are different variations, the message is

always the same ! Distribution has occurred!

Bars in which prices had been higher, then supply forced prices
lower into the lower part of the bars range.

Topping Tail Bars - TT

Candlestick Concepts

Bottoming Tail

Pristine Tip: While there are different variations, the message is

always the same ! Accumulation has occurred!

Bars in which prices had been lower, then demand forced prices
higher into the upper part of the bars range.

Bottoming Tail Bars - BT

Candlestick Concepts

WRB Ignites

WRB Ends

A Wide Range Bar after an extended advance or decline typically

happens near the end of a move. An NR or NRB will signal the turn.

A Wide Range Bar after a period low volatility ignites momentum in

that direction.

A Bar in which the Candle Body is relatively wide compared to the

most recent bars .

Wide Range Bar - WRB

Candlestick Concepts

BT

NB

WRB

NRB

NB

WRB

COGs

COGs

COGs

Thrusting Lines

Counter Attack Lines

Bearish Engulfing

Bullish Engulfing

Piercing Pattern

Dark Cloud Cover

Candlestick Concepts

NBs
BT

WRB

TT

NBs

COG

DOJI

Harami

Hangman

Shooting Star

Inverted Hammer

Long Legged Doji

Narrow Range Bodies & Bars

Candlestick Concepts

Moving Average
Concepts

Pristine Key Concepts

A Relative Strength Indicator

A Risk Reward Indicator

A Tool to help anticipate where a reversal may occur

A Guide to price Support & Resistance

A Bullish / Bearish Divergence Indicator

An Overbought / Oversold Indicator

The relationship between MAs and/or

The relationship between Price and MAs
Serve as:

Moving Average Concepts

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As prices move
farther away from
the 20-MA odds of a
reversal increase.

20-MA

As the 20- and 200MAs move farther

apart, the odds of a
reversal increase.

200-MA

An Overbought / Oversold Indicator

Moving Average Concepts

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New Low Divergence

20-MA

200-MA

COG

A COG after a
new high or new
low accompanied
by a smaller
distance between
price and the 20MA signals a
slowing in
Momentum and a
Divergence.

A Momentum or Bullish/Bearish Divergence Indicator

Moving Average Concepts

Price Resistance
Price Resistance

Price Support

Look to the
Left

A Moving Avg. is
a tool that helps
the trader
anticipate where
MA to enter positions
0
2
or take profits.

200 -MA

Looking to the left

of an MA should
point toward an
area of support or
resistance.

A Guide to Support & Resistance

Moving Average Concepts

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20-MA

Anticipated
Entry

RISK is
below COG

Anticipated
Exit

200-MA Potential Reward

As prices move
TIP: The correction from the
further from an
first point of resistance
Distance
MA odds of a
reversal increase. increases the odds that this
between MAs
point will be overcome.

Anticipate Entry/Exit and Risk/Reward

Moving Average Concepts

Stronger

Narrow

Narrow

20-MA

Wide

200-MA

Weaker

Wide

Wide

20-MA

200-MA

Narrow

Comparing the MAs of a stock or index to another will tell us which is stronger.

A Relative Strength Indicator

Moving Average Concepts

Retracement
Concepts

Pristine Key Concepts

Learn to see retracement levels without drawing them.

When trading, analysis must
be done quickly.
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Retracement levels alone are not enough to consider entering a

position. A Pristine setup is also needed.

The Retracement levels we are concerned with are 40, 50 and 60%

The Retracement levels are a percentage measurement between

significant highs and lows.

Retracement levels are used to measure the STRENGTH or

WEAKNESS of a move Counter to the Prevailing trend.

Retracements Concepts

60
50
40

40
50
60

100

The trend should continue in the original direction.

After a 40% Retracement, the trend is still considered positive.

100

40%

Levels and Interpretations