Intra-Day Trading Techniques

1 IntraIntra--Day Trading TechniquesDay Trading TechniquesWith With Greg CapraGreg CapraCoCo--Founder of , and CoFounder of , and Co--Author of the best selling Author of the best selling book, Tools and Tactics for the Master Day Traderbook, Tools and Tactics for the Master Day TraderCopyright 2001, Pristine Capital Holdings, 2001, Pristine Capital Holdings, PresentsTable of ContentsTable of ContentsIt 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.

2 This isnot a solicitation of any order to buy or sell. 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.

3 The authors and publisher assume no responsibilities for actionstaken 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 notlimited to the risk of Trading Trading can result in large losses and may not be an activity suitable for 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 databaseor retrieval system.

4 Without prior written permission of the of ContentsTable of ContentsPutting It TogetherPutting It TogetherIntroductionIntroductionFour Styles of TradingDay Trading DefinedPsychological RequirementsThe Key ConceptsThe Key ConceptsCandlesticksCandlesticksRetracem entsRetracementsMoving AveragesMoving AveragesMarket TimingMarket TimingSupport & ResistanceSupport & ResistanceMultiple Times FramesPristine Buy & Sell SetupMoving Average InterpretationMoving Average InterpretationCandlesticks SimplifiedCandlesticks SimplifiedFoundationFoundationCombining Foundation and Combining Foundation and Key Concepts for Mastering Key Concepts for Mastering IntraIntra--day Tradingday TradingIntroductionIntroductionIntroduct ionIntroductionFour Styles of TradingFour Styles of TradingTypes of TradingTypes of TradingFour Styles of Trading :Four Styles of Trading :CoreCore;;SwingSwing;;GuerrillaG uerrilla;;DayDayWhich fall fall Broad Trading Categories:Two Broad Trading Categories:WealthWealth;;IncomeIncomeTwo Broad Trading CategoriesTwo Broad Trading CategoriesWealth Trading StylesWealth Trading StylesIncome Trading StylesIncome Trading StylesCore TradingCore TradingSwing TradingSwing TradingGuerrilla TradingGuerrilla Trading Day TradingDay Trading -Weekly Charts-Daily Charts-Daily, 60 Min.

5 & 30 to Days-Weeks to Months-Days to Weeks-5, 15 & to HoursIntraIntra--day Trading Definedday Trading DefinedWhat is IntraWhat is Intra--day Trading ?day Trading ?1)1)A style that covers a holding period of several minutes to hoursseveral minutes to )2)Three forms of Intra-Day Trading :ScalpingScalpingMomentumMomentum 3)3)This style of Trading has become widely accepted )4)Day Traders use 5-& 15-Min. chartsto make entries and )5)Day Trading is best used on active, highly )6)Day Traders try to capture smaller gains with gains with minimal dollar riskminimal dollar )7)Day Trading is a style of Trading thatMay not be suitable for ALLMay not be suitable for ALL!!DayPsychological RequirementsPsychological Trading RequirementsPsychological Trading RequirementsConfidencePatienceDiscipline HOWA systematic objective Methodof interpretation is needed.

6 Subjective analysis must be reduced or builds a thought process which builds Your Job!FoundationFoundationThe Building BlocksThe Building BlocksIntraIntra--day Trading Toolsday Trading ToolsTools of the Pristine Day TraderTools of the Pristine Day TraderCharting Tools:Charting Tools:55--, 15, 15--& 60& 60--Min. IntraMin. Intra--day charts day charts displayed in Candlestick form. displayed in Candlestick form. Color coded coded Tools:Technical Tools:2020--& 200& 200--period simple movingperiod simple movingaverages. averages. A Price Pattern:A Price Pattern:The Pristine Buy & Sell Setup. The Pristine Buy & Sell Setup. IntraIntra--day Chartingday Charting2020--Period MAPeriod MA200200--Period MAPeriod MAThe 15 The 15--MIN.

7 ChartMIN. ChartCandlesticksCandlesticksColor Coded VolumeColor Coded VolumePristine Capital Holdings, Battle between Bulls and BearsThe Battle between Bulls and BearsDetermining Who Won The BattleDetermining Who Won The BattleBears WinBears WinBulls WinBulls WinHighHighLowLowCloseCloseOpenOpenOpenO penCloseCloseHighHighLowLowBodyBodyBodyB odySimplified Candle LanguageSimplified Candle LanguageSix Candle ConceptsSix Candle ConceptsAll give traders the Same probability of the current trend changing is increasing. A high probability opportunity may exist to Tail -BTTopping Tail -TTNarrowing Range Bodies -NRBN arrow Range Body NRWide Range Body -WRBC hanging of the Guard -COGThe Pristine Buy and Sell SetupThe Pristine Buy and Sell SetupPristine Buy & Sell Setup Facts:Pristine Buy & Sell Setup Facts.

8 The setup can be traded in all time combination of bars is a segment or smaller part of the overall is a set of bars that occurs in a detailed offers high probability with low Capital Holdings, Pristine Buy and Sell SetupThe Pristine Buy and Sell SetupSell SetupSell SetupBuy SetupBuy SetupEach new bar opens in the area of the prior bar s close and alsocloses above/below its opening price until a reversal of that setup is complete after a reversal candle has Capital Holdings, Pristine Buy and Sell SetupThe Pristine Buy and Sell SetupThis is NOTwhat we are looking for !These bars overlap each other and do not have the predictability we are looking Pattern RecognitionCongestion patterns are whippy and unpredictable.

9 Recognized by overlapping candles and multiple failures in both Capital Holdings, Average GuidelinesMoving Average GuidelinesSimple Moving AveragesLongpositions are favored when prices are Abovetheir 20-MAon a Entry points are found on 5-or are considered when prices are extended Belowthe 20-MAon a Above their 20-MAon the are considered when prices are extended Abovethe 20-MAon a Belowtheir 20-MAon the are favored when prices are Belowtheir 20-MAon a Entry points are found on 5-or Capital Holdings, Average GuidelinesMoving Average GuidelinesThe 60-MIN. ChartWhen Prices rise Abovethe Prices decline Belowthe Term Intra-Day20-MA200-MAFavor ShortTradesFavor Capital Holdings, Average GuidelinesMoving Average GuidelinesExtended Bearish TrendPrices move Key ConceptsPristine Key ConceptsCandlestick Candlestick ConceptsConceptsCandlestick ConceptsCandlestick ConceptsShort or Narrowing range candles tell us volatility is low or momentum is or Expanding range candles tell us volatility is high or momentum is candle will give us information that either confirmsor contradictsthat yourself, What does the current candle tell you about the prevailing trend?

10 Note:A trend = 3-5 bars moving in the same ConceptsCandlestick ConceptsChanging of the Guard Bar -COGA Bullish COGis defined as three or more consecutive red bars followed by a green Tip:While there are different variations, the messageis always the same ! A reversal in momentum hasoccurred!A Bearish COGis defined as three or more consecutive green bars followed by a red COGsBearish COGsCandlestick ConceptsCandlestick ConceptsNarrowing Range Bars -NRBP ristine Tip:While there are different variations, the messageis always the same ! A slowing in momentum is occurring!Narrowing Range BarsA series of bars in which the difference between the highs and lows is ConceptsCandlestick ConceptsNarrow Range Bodies -NRPristine Tip:While there are different variations, the messageis always the same !