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Trading the Pristine Method

Advanced Scalping Techniques (AST)


The Future of Trading

Presented by: Sami Abusaad


Email: sami@pristine.com
www.pristine.com
Disclaimer
It should not be assumed that the trading methods and techniques presented in this book or the 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.

“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.”

The authors and publisher assume no responsibilities for actions taken by readers and attendees. 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.

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

The charts shown are historical and are used to illustrate one or more Pristine Method® concepts. All charts are for
education and not to be interpreted as a recommendation by the presenter or Pristine.

Copyright © 1994-2012 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. SN: 62272
Table of Contents

Advanced Scalping Techniques

Introduction

Pristine Shakeouts Page 4 – 51


One Bar Shakeouts - Page 7 – 19

Multi-Bar Shakeout - Page 20 – 31

Inverted Shakeouts - Page 32 – 42

Bake and Shakes - Page 43 – 51

Power-trends & Pre-climactics Page 52 – 77

Climactics Page 78 – 94

Variations on the 15-min Buy Setup (PBS) Page 97 – 136

3
Advanced Scalping Techniques (AST)

Pristine Shakeouts:
Introduction

www.pristine.com
The Flash Crash
The flash crash was NOT a one time event and continues to happen
daily, maybe not the market itself, but on individual stocks.

Please note the High and


Low Prices of the flash crash
bar.

Flash Crash
High $117

Flash Crash

Flash Crash
Low $105

Lets move forward and see how we can profit from our current market conditions.
5
Pristine Method® Shakeouts

Why Do Shakeouts Happen?

1. News?
2. HFT’s (High Frequency Trading)?
3. Dark Pools?
4. Market Makers?
5. Lack of liquidity?
6. Fear/Greed?

Please choose the most relevant answer from the list above…

6
Pristine Shakeouts (PSO)

Pristine Shakeouts
1. A Strategic Entry into a stock that has proven to have RS/RW to the market but has
given little or no opportunity for entry.

2. Either a series of bars of the same color, or a 1 bar acceleration, that fall in the
opposite direction of the stocks current trend to prior Support.

3. PSO’s are ALL accompanied by a Surge In Volume.

4. Most often occur at or near HOD (Consolidating prior to Fall/Rise is a plus).

5. Unable to break the current trend of the stock on the time frame from which it was
played but breaks the trend line.

Note: Pristine Shakeouts have a very high reward to risk ratio and can offer the Pristine
Trader Enormous Profit Potential!
7
Advanced Scalping Techniques (AST)

One-bar Shakeouts

Smaller timeframes will be used for these strategic entries…

www.pristine.com
8
One Bar Shakeouts

Stock basing at HOD

Daily Chart

Notice how the stock is


basing at HOD and falls to
support on a surge of r20ma
volume.

MS

Prior support at the


whole number

Volume Spike

Trading Tip: The Pristine Trained Trader waits for the bottoming tail to start to form before looking to enter.
9
One Bar Shakeouts

Bottoming Tail The bottom of the


base is Target 1

Use intraday chart and buy over


a prior bar’s high on 1’
timeframe near the ‘bottom’,
with a protective stop under
entry bar’s low.

Volume Spike

Trading Tip: The Pristine Trader will look to take profits at mR once the stock retraces back to the base.
10
One Bar Shakeouts

HOD at Reversal Time


and showing
5’ Chart remarkable RS

This stock took off at the


open with absolutely NO
opportunity to enter.

BLAST
OFF!

Trading Tip: The Pristine Trained Trader will SOH and WAIT for an opportunity to buy this stock.
11
One Bar Shakeouts

Whole numbers can often be an area of support or


resistance. Like a “self-fulfilling prophecy”, when enough
people act there, they can create an effect.

The stock falls


directly to mS, PDC
and the Whole
Number at RT with
a surge in Volume!

Trading Tip: The Pristine Trained Trader will drill down to 1-min
timeframe and will look to buy this stock above prior bar’s high, with a
protective stop UNDER the tail.
12
One Bar Shakeouts - Entry

1’ Chart

Buy 1 cent
over this 1
minute bar

Stop under
Bottoming Tail
bottoming tail on
this 1 minute bar

Notice the volume spike

13
One Bar Shakeouts - Targets

Target

5’ Chart

Buy
&
Stop

Trading Tip: If the shakeout was used as an entry into a larger strategy (i.e., hourly
PBS), the Pristine Trained Trader can take partial profits at prior pivot high and hold
the back half until the larger timeframe reaches desired target.
14
One Bar Shakeouts – Management

1’ Chart

Name the Points of Interest in this Chart


15
One Bar Shakeouts – Management
Target 1 at HOD

Once the pivot forms,


stop can be raised on
“scalp portion” of the
shares to under pivot
low.

Prior 1’
Pivot Low Buy 1 cent over
this 1 minute bar

Stop under this bottoming


tail on this 1 minute bar

16
Calculating Share Size

Basic Share-Sizing

Example Using $100 Risk


Entry: $44.18
Stop: $43.98
Stop Size: 20 cents ($44.18 - $43.98 = 20 cents)
$100 risk/20 cents = 500 shares
Or
500 shares x 20c = $100 risk
17
Calculating Risk to Reward

Calculating Risk to Reward

Target Divided by Stop = Potential Reward


Reward x Risk Capital = Potential Profits
Entry: $44.18
Stop: $43.98
Target: $45.00
($45.00 - $44.18 = $.80 (rounded off); divided by 20 cents = 4)
If target is Reached: Reward = 4:1 or $400

18
Advanced Scalping Techniques (AST)

Multi-bar Shakeouts

Smaller timeframes will be used for these strategic entries…

www.pristine.com
19
Multi-Bar Shakeouts

2’ Chart Retest of HOD

mS
Buy as tail starts to form
or use 1’ timeframe to buy
above a prior bar’s high

Important:
1. Convincingly breaks the trend line.
2. There are NO green bars (GBI’s) from the top of
the fall to the bottom.

Volume Spike

Trading Tip: The Pristine Trained Trader buys above 1’ bar’s high or as 2’ bar is forming a bottoming tail.
20
Multi-Bar Shakeouts
Target was easily hit

2’ Chart

Target Prior Pivot Low

Buy 1 cent over this


bar

Volume Spike

Trading Tip: The Pristine Trained Trader can use an alternative entry but risks “missing” the trade.
21
Multi-Bar Shakeouts

2’ Chart

Important: Retest
Stocks often shake more than once, and the lows Bar
from last shakeout are often retested. This allows
the PTT a second chance to capitalize on the
opportunity provided.

Trading Tip: The Pristine Trained Trader looks to buy the second shake
as long as the retest did not violate/break prior pivot low
22
Multi-Bar Shakeouts

2’ Chart Target Hit!

Important Question: was


this considered a break of
the prior pivot low?

Trading Tip: The Pristine Trained Trader plays this twice for Maximum Profits!
23
Multi-Bar Shakeouts

HOD base
2’ Chart

Question:
Where is
entry on this
pullback?
Fall to
support

Volume
Spike

Trading Tip: The Pristine Trained Trader will WAIT until a valid entry has
triggered at an area of SUPPORT
24
Multi-Bar Shakeouts - Entry

Target ; Previous Pivot Low

Buy above prior


bar’s high

Stop under the low


of the entry bar’s
Important: low

1. The stock was UNABLE to fall into a DT


2. There are NO green bars from the top of the fall to the bottom.

25
Multi-Bar Shakeouts

1’ Chart
List 4 Points That
Make This a valid
Shakeout:

_________________

_________________

_________________

_________________

Trading Tip: Let the chart tell the story.


26
Multi-Bar Shakeouts
Shakeout occurred at or near
the HOD

Buy above prior 1’ bar’s


high
Stop under the BT
Support

Important
The surge in volume on the last bar of the
shakeout often signals the end of the counter
move.
The trend line is broken, but not the trend.

Volume Spike

27
Multi-Bar Shakeouts
1’ Chart Stock Basing at HOD

Trading Tip: A high percentage of Breakouts fail, consider waiting for them to shakeout first.
28
Multi-Bar Shakeouts - Targets
TARGET 1 is the
1’ Chart BOTTOM of the Base, Target 1
Why?

BUY

STOP

Selling Volume
Decreases

Trading Tip: Buy over the “Inside Bar”, Stop under the LOW of the Shake.
29
Multi-Bar Shakeouts - Management

1’ Chart Target 2

Trail Remaining
Shares

Add Share
OVER the Base

STOP : Once the stock


breaks above the base,
move stop up to the
bottom of the base

Trading Tip: The Topping Tails, Extension from the r20ma and the +WRB’s coming at the end of a
multi bar rally signaled that the move was over. 30
Advanced Scalping Techniques (AST)

Inverted Shakeouts

Smaller timeframes will be used for these strategic entries…

www.pristine.com
31
Inverted Shakeouts

5’ Chart Inverted Shakeouts


This stock gapped down in the morning
and traded at or near LOD all day.
Gap
Down!

Stock at
LOD

Trading Tip: PTT’s never play a bearish stock long unless a clear reversal pattern has formed.
32
Inverted Shakeouts

5’ Chart
+WRB signals short-term
exhaustion

Prior Resistance

Huge Volume Spike!

Trading Tip: The Pristine Trader stalks a stock back to prior resistance BEFORE ACTING
33
Inverted Shakeouts

2’ Chart

Important:
Trapped traders start covering at this “area” of
supply
Stop over tail

Short under low

Huge Volume Spike!

Trading Tip: The stock MUST reach resistance before it can be in play
34
Inverted Shakeouts

5’ Chart

Prior Pivot High

Target 1:
r20ma,
and mS

Trading Tip: The Pristine Trader will take profits at target 1 and hold a position for target 2.
35
Inverted Shakeouts

Important:
Large volume spikes often signal
the beginning or end of a move.

5’ Chart

mS Support
Target 2!

Volume
Spike

Trading Tip: The Pristine Trader is trained to ACT on opportunity!


36
Inverted Shakeouts – Daily Chart

Important:
It’s VERY important to note that ALL plays start
with a Bullish/Bearish Daily Chart

Gapping
UNDER a WR
Green Bar

Trading Tip: PTT’s don’t play Bearish Stocks Long or Bullish Stock Short unless they go Climactic
37
Inverted Shakeouts – Intraday Chart
This Gap Down puts this stock
IN PLAY for the Whole Day!

5’ Chart

Basing at LOD

Trading Tip: The Pristine Trader will SOH and wait for opportunity.
38
Inverted Shakeout at 5’ Resistance

This Stock Launches off of a LOD


base right into an area of Supply

5’ Chart Major
Resistance

Volume
Spike

Trading Tip: ALL Shorts get Shaken out as short covering propels prices higher
39
Inverted Shakeout – Entry

Important:
Enter Under prior bar’s
PTT’s will Stalk this Bearish Stock low, with a protective
on a 1’ or 2’ chart for an entry. stop above the TT

1’ Chart

Volume Spike

Trading Tip: The Topping Tail into Resistance was the indicator that the Move Was Over
40
Inverted Shakeout – Targets & Management

Important:
Notice that there are NO Red Bars
in this rally as the stocks price Trail Balk Half
moves into an area of Resistance. Over this 2’ Pivot

Target 1, 2’ r20ma

Trading Tip: A strong rally like the one above most likely means that the bearish nature
of the stock has ended.
41
Advanced Scalping Techniques (AST)

Bake and Shakes

Smaller timeframes will be used for these strategic entries…

www.pristine.com
42
Bake & Shakes

Pristine Bake & Shake (PB&S)

1. A Strategic Entry into a stock that has proven to have RS/RW to the market.

2. A one bar shakeout in the opposite direction of the stock’s current trend. Shaking to
an area of Support/Resistance is a plus.

3. The shakeout bar is immediately negated by another bar, bringing the stock back to
the same price level prior to the shake.

4. PB&S’s are ALL accompanied by a Surge In Volume.

5. Often occurs at or near HOD/LOD.

6. Bake and Shakes have a very high risk to reward ratio and can offer the Pristine
Trader Enormous Profit Potential!
43
Bake & Shakes
These traders are ALL trapped and need to sell.

Important:
All stocks in play start with a
weak/strong daily chart.

Volume
Spike

Trading Tip: This stock remained weak all day because of the gap down
in the morning, leaving many traders trapped and forced to sell!
44
PB&S Basing at LOD

This stock was basing at


LOD for over an hour

1’ Chart

Whole
Number

Trading Tip: Pristine Traders will stalk this stock and SOH until there is a clear opportunity to enter.
45
PB&S Shakes Right to Previous Resistance

Important:
The breakout does two things: Bears stop
out and bulls go long, thus creating a huge
surge in volume

NOW you know


the stock is ready
This stock popped right to Resistance to go lower

Volume Spike

Trading Tip: What Price was the Stock Basing at?


46
PB&S Entry

Important:
The stock should NOT go back to
retest the high of the shakeout bar

Short under the base and place a


protective Stop over the TT

Volume Spike

Trading Tip: Whole numbers often act as areas of support/resistance


47
PB&S ALT 1’ Entry

Important:
1’ Chart
If you miss the first
entry, there is often a
second. If you caught
the first entry, this is a
good place to add
shares.

stop

1’ sell set up Enter

Trading Tip: You can use the tight stop over the 1’ sell set up OR use the original stop just over the whole number

48
PB&S Target & Management

Important:
Always know your target before you
ENTER a trade, Target was EOD or $19.00.

Lower stop

-WRB

Volume Surge

Trading Tip: Even though the $19 target was NOT hit to the penny, why did we cover our trade here?
49
PB&S Target & Management

Important:
Always know your target before you
ENTER a trade, Target was EOD or $19.00.

Lower stop

-WRB

Volume Surge

Trading Tip: Even though the $19 target was NOT hit to the penny, why did we cover our trade here?
50
PB&S Basing at LOD

Note: Today was a Professional Gap Down.


The stock was in a Powertrend and basing at
the lod, which is an extremely bearish picture.

1’ Chart

Bake & Shake

51
PB&S Basing at LOD

1’ Chart

$30.00
drop!!!

-WRB

52
A Quick Quiz

Pristine Method® Shakeouts

1) Please Name the 5 Points that Make up a Shakeout:


1.
2.
3.
4.
5.
2) Name the two main differences between
Shakeouts and Bake and Shakes?
1.
2.
53
Advanced Scalping Techniques (AST)

Power-trends & Pre-climactics

Smaller timeframes will be used for these strategic entries…

www.pristine.com
54
Pre-climactics & Power-trends

Pristine Pre-climactics & Power-trends


General Theory

The Law of Motion: “An object in motion tends to remain in motion”..Pre-climactics


depend on this well-understood mechanism.
A. After a green bar, expect another green bar to form at least 80% of the time
B. After a red bar, expect another red bar to form at least 80% of the time
C. The bigger the green or red bar, the higher the odds of follow through…unless the move
becomes climactic
What is a pre-climactic stock:
It’s a stock that is moving rapidly and significantly in one direction on high volume,
independently of the market. In other words, it’s a stock with strong momentum moving
in one direction without yet appearing to exhaust the buyers/sellers.
What is a power-uptrend:
It’s rising stock trading above a smooth rising 8MA that is also above a smooth rising
20ma and the 200ma.

55
Pristine Pre-climactic Play (PPC)

Pristine Pre-climactics & Power-trends


Pristine Pre-climactics
General Theory

Notes:
Herd Mentality – understanding psychology behind price action
 Technical analysis of momentum moves is about uncovering herd mentality.
 During dynamic price movements, fear-greed exerts tremendous force.
 The bigger the move, the faster it happens, and the more volume it occurs on
(size/speed/volume), the more pain-exuberance there is. The more Fear-Greed.
 With that in mind, you must remember to step off the momentum train before it
reaches the station and starts reversing.
 Momentum strategies work through most market conditions since they are mostly
independent of the market.
 Remember: we are searching NOT for long–term momentum, but for short-term
momentum.

56
Pre-climactics & Power-trends

Pre-climactics vs. Power-trends

Differences between a power-trend and a pre-climactic:

1. Momentum: A pre-climactic typically has more momentum than a power-trend such that
moving averages are not able to catch up to price. Speed is measured through price
location relative to moving average location. In other words, pre-climactics are typically
more extended.
2. Acceleration: Pre-climactics not only move faster than power trends, but typically their
speed is also increasing with time. The increase in the speed of the stock is measured
though either a classic MACD indicator or by combing two moving averages, such as an
8MA and a 20MA.
3. Duration: A stock can stay in a power-trend for many hours. In fact, some power-trends
carry over into the following day. Pre-climactics typically last less than 1 hour.
4. Smoothness: Power-trends move in a smooth fashion, typically in a 45˚ angle. Pre-
climactics are sharper and more erratic.
5. Volume: Pre-climactics typically have increasing volume until the volume becomes
climactic and the move exhausts itself. Volume in power-trends remains steady until the
end of the trend. When a power-trend is near its end, the stock usually starts separating
from moving average and/or volume spikes.
57
The 8MA Run

There is nothing more elegant that the 8MA Run! It only


takes one of these a week to make a small fortune

58
The 8MA Run

Your job is to find an entry to jump


on board to ride the momentum train
to a desired profit target, until the
stock goes climactic, or until the
downtrend ends.

59
The 1-minute Power-trend

Trading Tip: The 1-minute chart is the


entry timeframe for the scalper and
can serve for entries to 2 and 5-
minute strategies
8ma

20ma

200ma

60
The 8MA Run

2-min
Chart
PBD
15-min
PBD PSS
Chart

PBD
PBD

PSS
There is nothing more elegant that the
8MA Run! It only takes one of these a
week to make a small fortunate
Find a way to get into this stock.
Look for entries off the 1-min or
2-min charts, or simply “Fall-in” Pre-climactic stage
(see next page)
if necessary.

61
Power-trend  Pre-climactic

Pre-climactic Type 1

If you are entering


Price beginning to here, you are
separate from MAs essentially now playing
a pre-climactic, not a
power-trend. What’s
entry & stop?

Trading Tip: There are two types of pre-climactics you will


play. One is the result of a power-trend that starts
accelerating away from the d8ma/d20ma and goes
climactic. The other type is formed when a stock goes
climactic and rallies a bit, but then drops back to the LOD Notice the
increase in
and starts basing there. Both are extremely profitable volume
trading patterns.

62
Power-trend  Pre-climactic

Pre-climactic Type 1

Note: Is this 2-min sell setup


playable? Why or why not?

Figure out a way to get into


this stock. Do not throw away
free money!
Pre-climactic stage

63
Climactic  Pre-climactic

Pre-climactic Type 2 Note: The stock goes climactic and


bounces off the lows. However, the
stock drops again to the LOD and starts
basing there. At or near the point of
contact with the d20ma, the stock
breaks down.
Trade Action Steps
1. Short the Pristine Breakdown
2. Place stop above the base
5-min Chart 3. Manage as per Trading Plan
4. Target is taken when the stock
becomes climactic

Daily Chart

CBS

Question Which line represents


entry point, and why?

64
Climactic  Pre-climactic
On this day, what should your belief be regarding the
direction of the stock?

Daily
Chart

Significant Failures on the daily chart make for


the best power-trends and pre-climactics

65
Climactic  Pre-climactic
Daily 5-min 2-min

Note: Notice that the stock bounced


FIRST, and then sold off and started
basing at the lows after going climactic.
This is the KEY.
This stock dropped approx. $2.00 after
breaking LOD.

Note: Notice that today is a -WRB, Note: The 5-min chart became climactic Note: A stock that after going climactic,
igniting a new move, not ending an in the area of prior Major Support (MS) rallies, and later starts basing at the
old one (no exhaustion there). This on daily chart. Question: Is it better for lows, becomes a prime candidate as a
is also KEY, and will be incorporated the stock to go climactic at support or Pre-climactic short
into our Pre-climactic Strategy. after breaking support? 66
Climactic  Pre-climactic

5-min Chart 15-min Chart

Why didn’t this entry go?


Where are two other possible entries?

Daily
CBS

Entry into Pre-climactic

67
Climactic  Pre-climactic

Pre-climactic Type 2

5-min Daily Chart

CBS

A mini climactic drop on the 5-min chart generated a


small bounce and then a sideways consolidation into the
d20ma.
Question: Where is the entry?

68
Bullish Picture of Power (+POP)

Bullish Picture of Power (+POP): rising stock trading above a smooth 45˚ rising
20ma that is above the 200ma

A perfect PBO
entry into a
+POP

Note: At or near the point of contact


with the r20ma, the stock breaks out.
Trade Action Steps
1. Buy the PBO
2. Place stop below the base
3. Manage as per Trading Plan

69
Power-Uptrend

d
Not as tight?
A power-trend is a power-
trend. All Dips & Breakouts
5
should be bought. c

b
4

3 Even Space
a
2 r8ma

r20ma

Note: the smooth nature of the r8ma and the


1
r20ma, these are referred to as “railroad tracks.”

70
Power-Uptrend
d

• All Pullbacks are Buyable c


• Breakouts are also Buyable b

a 2

1 Even Space

r8ma

r20ma

71
The best Daily Charts

Daily Chart Hourly Chart

The best power-trends come from daily charts displaying a significant failure pattern.
Use the 1-min to short all counter-rallies & breakdowns

72
Power-Downtrend

Daily Chart 5-min Chart

Your job is to find an entry to jump on board to ride the


momentum train to a desired profit target, or until the
stock goes climactic.

73
Power-Uptrend

5-min Chart

Drill down to the 1-min timeframe and buy every


pullback.
74
Power-Uptrend

*All Pullbacks are Buyable


*Breakouts are also Buyable

r8ma

r20ma

= Pristine Trading Opportunities

75
The Best Daily Charts
2-min Chart

Note: Every sell setup and breakdown


should have been taken, except for one.

= Pristine Sell Setup

= Pristine Breakdown

Short every sell setup and breakdown


76
Pristine Momentum Buy (PMB)

General Requirements
Must Have:
1 The Technical Picture:
Power-Trend: A smooth rising stock > r8ma > r20ma > 200ma or a +POP (smooth rising stock > r20ma > 200ma)
Pre-climactic Type 1: Same as above, except that the stock started to accelerate/separate away from the 20ma, on
volume
Pre-climactic Type 2: Stock went climactic, then sold off, but later rallied back and started basing at or near HOD
2 A compelling daily chart (such as an igniting move/gap, or a failure pattern)
3 Sufficient Price VOID: Reward to Risk is at least 2 to 1
4 Relative Strength/on it’s own page
5 Above 200ma on 5-min and 15-min charts (the stock is not in a downtrend/bearish on larger timeframes)
6 If the stock is basing, then:
1. Base must be narrow and thin (i.e., small bars), not wide and whippy
2. Price must meet a rising 8/20ma (no crisscrossing)
3. Light or declining volume while basing
Can’t Have:
1 Fuzzy (lots of tails) power-trend
2 Stock is in the process of losing momentum (new highs should be proportional)
3 Spread is more than 1/4th of stop size
Q QQQ failing on last buy setup, or;
Q QQQ breaking down, or;
Q QQQ arriving at resistance

77
Pristine Momentum Buy (PMB)
General Requirements
Would like to have:
1 Stock is completely on its own page, either basing at HOD or maintaining a power uptrend while the market is declining
towards support
2 The move started from a significant event, such as, an igniting +WRB, bullish engulfing bar, or a failure pattern, on
above avg. volume
3 At: 10:30, 11:15, 12:00, 1:15 – 1:30, 2:15 – 2:30, 3:00 (+/- 5 min)
4 Stock is currently in a power uptrend on multiple timeframes (i.e., 1-min, 2-min & 5-min)
5 If stock is basing, then:
1.Last 2-3 bars have higher lows compared to rest of bars in base
2.A shakeout bar occurred in the last 2/3rds of the base
Power-Trend & Pre-climactic Type 1:
Entry Use the smallest possible timeframe where a power-uptrend exists and buy every dip and breakout. If the
stock is not providing a PBS, PBO, or RBI entry, then simply “Fall-in” as long as it’s in the area of the
r8/r20ma.
Pre-climactic Type 2:
Buy the PBO above the base at or near the HOD
Stop $.02 under pivot or base (stop must be on other side of moving average)
Target Remain in the stock for as long as it remains in a power-uptrend
• If the stock starts separating away from the 8/20ma, trail position bar by bar on 1-min timeframe
• If the stock puts in a +WRB/becomes climactic, either trail on Level II screen or simply take it
Mgmt Powertrend: Manage using pivots on the timeframe where a power trend exists. If no pivots are available, then use a
break of the 8/20ma as an exit.
Pre-climactic: AON until the stock goes climactic

Reminder: The goal is to stay with the trade for as long as it remains in a power-uptrend. If you can put your trust in the
8/20ma and just do nothing, you will make a lot of money

78
Closing Thoughts…

Pristine Power-Trends & Pre-climactics


1. The volatility inherent in trading preclimactics and powertrends increases risk and
inhibits safe entry-exit planning. As traders, we typically rely on support-resistance
to determine entries and pick targets. However, momentum stocks often display no
common landscape features at all. This requires taking difficult entries, with no
clear violation of support/resistance. In this blind environment, arbitrary stop losses
may sometimes be the only way to keep us out of intense danger.

2. To engage in momentum trading, you must have:


Patience and Discipline: You need to have the mental focus to remain steadfast
when things are going your way until the trade reaches target.
Detachment and Strict Emotional Control: Abandon the adrenaline rush, forget
the excitement. Profit depends upon detached and disciplined execution. Use cold
logic to exit the trade once the move is over and swiftly move onto fresh ideas that
reflect new inefficiencies.
Precise timing and sound risk management: The rapid price movements in
momentum trading require excellent timing, spontaneity, the ability to pull the
trigger, and excellent risk management. Remember, risk control is always job # 1

79
Advanced Scalping Techniques (AST)

Climactics

Smaller timeframes will be used for these strategic entries…

www.pristine.com
80
Climactics

Pristine Climactic Buy Setup


1. 5 or more consecutive lower highs or 5 or more red bars (having both is better)
2. Reversal bar: BT, NB/NRB, or +COG
3. Far below the 20ma (2% on 5-min chart)
4. Volume increase (optional at times)
5. Reversal Time (if intra-day)

81
Climactic Buy Setup (CBS)

From a Pattern  Tradable Strategy


General Requirements
Must Have:
1 The Pattern:
1. 5 or more consecutive lower highs or 5 or more red bars (having both is better)
2. Reversal bar: BT, NB/NRB, or +COG
3. Far below the 20ma – min. 2% away from 20ma on 5-min chart
4. Volume increase (optional if Full Climactic)
5. Reversal Time (if intra-day)
6. WRB(s): parabolic price acceleration away from the 20ma to the point of exhaustion, with the last bar
being the largest
7. The decline is climactic on at least 2 timeframes
2 Sufficient Reward to Risk (at least 2 to 1)
Can’t Have:
1 Recent breakdown on intraday timeframes (unless the stock is Full Climactic)
2 Basing at or near LOD
3 Today’s daily bar is: a tier 1 gap, a Mortgage Gap, or Gap n’ crap (e.g., gap disease), or showing a
strong failure pattern
Q • QQQ failing on last buy setup, or;
Q • QQQ breaking down
Q

82
Climactic Buy Setup (CBS)
General Requirements
Would like to have: Important Definitions
1 Volume surge (a big plus) Full Climactic: Daily shows 3+
2 Reversal Time (RT) green/red bars in a row, at
least two consecutive 20/20
3 The stock is considered a “Full Climactic”
bars, or today is a WRB
4 Daily trend is down (better if extended and best if climactic) forming in the same direction
5 Stock just broke MS on as many timeframes as possible of an extended daily.

Timing with the market: Mini Climactic: Today’s bar is


Q the first bar in this direction
•QQQ on an extended/climactic decline, or;
Q (only 1 green/red bar).
•QQQ at support, or;
Q
•QQQ moving in the direction of the stock – not opposite
• If 5min is picture perfect, then use 1 or 2min chart for entry (over the last bar’s high)
• If 5min is not picture perfect, back off and look at the 15min chart. If the 15min chart is good, then
Entry use 5min chart for entry
• Important Note: If “Full Climactic”, 5-min does not have to be “picture perfect” (i.e., +WRB on
+Vol.) in order to use the 1-min or 2-min for entry
• If Full Climactic, then TGT 1 = 20ma on 5min chart…and TGT 2 = 20ma on 15min chart
Target
• If Mini Climactic, then TGT 1 = 20ma on 1 or 2min chart…and TGT 2 = 20ma on 5min chart
Stop • LOD
• AON to 80% to target 1 (then BBB on 1 or 2min chart)
Mgmt • Stop B/E for back half once target 1 has been reached
• Back half managed on 5-min “significant” pivots until 80% to target 2 has been reached, then
switch to 1 or 2min BBB until target 2 is reached
83
Climactic Buy Setup (CBS)
1-min Chart

Question 1: Is this a good CBS?


Why or why not?
Question 2: At what point does
this become a pre-climactic?

84
Climactic Buy Setup (CSS)
1-min 5-min Daily
Four CSS Criteria Met
1. Five Green Bars
2. -COG/TT
3. Volume Increase
4. Far from 20ma
5. Noon reversal time

Reminder: Never trade in a vacuum. When you have multiple timeframes in


alignment, the odds of success increase exponentially.
85
Climactic Sell Setup (CSS)

CSS
Five CSS Criteria Met
1. Five Higher Lows
2. -COG/TT
3. Volume Increase
4. Far from 20ma
5. Noon reversal time

PBO pre

r20ma

86
Climactic Sell Setup (CSS)

CSS
5-min Chart
15% away
from 20ma

pre
123 Breakout

87
Climactic Sell Setup (CSS)

5-min Chart

d20ma

This is the PICTURE you want to be


looking for when playing climactics

CBS

88
Example Play

CSS
2-min Chart
A rare Climactic Buy Setup (not shown)
that turned into a Climactic Sell Setup

pre

r20ma

89
Climactic Buy Setup (CBS)

Target 1 = 5’ d20ma

Stop LOD

The Process:
Full or Mini? Full
Full Target 1 = 20ma on 5min
Target 2 = 20ma on 15min

Mini  Target 1 = 20ma on 1min


Target 2 = 20ma on 5min

2 5min Pic. Perfect? Yes

Target 2 = 15’ d20ma Yes  Enter off 1min


No  Is 15’ “good”? Full Climactic
Yes  Enter off 5min
No  No play

Comments: 5’ doji bar’s


high is 2 cents above 1’
bar’s high, use 5’ for entry
90
Target 1 = 5’ r20ma

Not climactic or 1
extended  no
entry off 1’

The Process:
Full or Mini? Full
Close enough to tgt
2, trail bbb on 5’ Full Target 1 = 20ma on 5min
Target 2 = 20ma on 15min

2 5min Pic. Perfect? No

Target 2 = 15’ r20ma No  Is 15’ “good”?


Yes  Enter off 5min
No  No play Full Climactic

Comments: Even if 5’ was


pic. perfect, notice 1’ chart
did not provide a clear
entry. Therefore, enter on 5
Target 1 = d20ma on 1’ Target 2 = d20ma on 5’

The Process:
Note: It’s entirely possible to manage
the play to bigger targets. In this case, Full or Mini? Mini
the stock reached d20ma on 15’
Mini  Target 1 = 20ma on 1min
Target 2 = 20ma on 5min
Mini
5min Pic. Perfect? Yes

Yes  Enter off 1min

92
Quiz

The Process
1. Full or Mini? _ _ _ _
2. 5’ Pic. Perfect? _ _ _ _
3. What are targets 1 & 2?
____& _ ___

93
Quiz
Quiz

The Process
1. Full or Mini? _ _ _ _
2. 5’ Pic. Perfect? _ _ _ _
3. What are targets 1 & 2?
____& _ ___

94
Quiz

The Process
1. Full or Mini? _ _ _ _
2. 5’ Pic. Perfect? _ _ _ _
3. What are targets 1 & 2?
____& _ ___
95
Advanced Scalping Techniques (AST)

Variations on the 15-min Buy Setup (PBS)

Smaller timeframes will be used for these strategic entries…

www.pristine.com
96
Variations on the 15-min Buy Setup (PBS)

Pristine Buy Setup (PBS)


1. Rising stock above a rising 20ma
2. 3 or more consecutive lower highs or 3 or more consecutive red bars (having
both is better)
3. Location: At price support and/or moving avg support
4. Retracement in the range of 40% to 60%
5. Reversal bar
6. Volume surge, Reversal Time (Optional)

97
Variations on the 15-min Buy Setup (PBS)

From a Pattern  Tradable Strategy


General Requirements

Must Have:
1 The Pattern:
1.Rising stock above a rising 20ma
2.3+consecutive red bars or LH’s - having both is better (clean PB, no overlapping bars or GBIs)
3.Reversal bar
4.Location: At price support and/or moving average support
2 A compelling daily chart*
3 Price VOID and sufficient reward to risk (minimum 2:1)
4 Relative Strength
5 Above a rising 20ma on strategy timeframe, and 5-min chart (unless it’s pattern # 7)
6 After 10:30 and before 3:15 (best time is between 1:30 – 2:30)
Q • In a 5-min uptrend, or;
Q • In a 15-min or 60-min uptrend and pulled back to either mS or MS, or;
Q • In a trading range (in which case go long when QQQ is at the bottom of the range)
Can’t Have:
1 1st buy after a climactic sell setup
2 1st buy after a square or rounded top
3 Daily has put in 3+ consecutive green bars
4 Basing at the bottom of the pullback (unless a shakeout forms, thus negating the short-term
bearishness)
98
Variations on the 15-min Buy Setup (PBS)

From a Pattern  Tradable Strategy


General Requirements

5 Excessive pullback (not more than 60% of prior rally)


• QQQ failing on last buy setup, or;
Q
• QQQ breaking down, or;
Q
• QQQ arriving at resistance
Q
• TRIN > 1.3 and trending up progressively
Would like to have:
1 Reversal Time
2 -WRB, BT, NB, NRB forming at the end of the pullback
3 Volume surge coming at the end of the pullback
4 Volume decline on pullback
5 Timing with the market: QQQ also triggering a PBS or PBO
Entry • $.02 above prior bar’s high
• If the stock is in a clearly defined 2-min or 5-min downtrend, make sure the downtrend has been broken before you enter AND the
15-min has also triggered
• Note: if 2-min or 5-min became mini climactic or has put in a –WRB on volume, then there is no need to wait for downtrend to end
before entering
Stop • $.02 under 15-min pivot low
Target • Prior pivot high
• Note: If prior pivot high is far away, and there is significant resistance below prior high, then consider that resistance area as target
1 and the prior pivot high as target 2
Mgmt • AON to 80% to target 1 (then BBB on 1 or 2min chart)
• Stop B/E for back half once target 1 has been reached
• Back half managed on 5-min “significant” pivots until 80% to target 2 has been reached, then switch to 1 or 2min BBB until target
2 is reached
99
Variations on the 15-min Buy Setup (PBS)

Entry Tactics for 15-min chart

101
Variations on the 15-min Buy Setup (PBS)

Pattern # 1: The Vanilla

20MA

Pattern description (The Vanilla):


A rising stock above a rising 20ma that has pulled back
on the 15-min chart and went into a downtrend on 2-min
timeframe. The entry triggers once a green reversal bar
goes above the prior bar’s high on 15-min timeframe.
However, the entry is not taken until the 2-min
downtrend has been broken.
101
Variations on the 15-min Buy Setup (PBS)
Pattern # 1: The Vanilla

+COG

A 15 minute Pristine buy setup (PBS), sitting on the 200 period


moving average (200ma), and at the rising 20 period moving
average (20ma), on strong minor support (mS), at a 50%
retracement (50%), that forms with a bottoming tail (BT) and a
narrow +COG
102
Variations on the 15-min Buy Setup (PBS)
Pattern # 1: The Vanilla
15-min

Enter above
this bar’s high

A smooth multi-bar pullback to the r20ma and Minor Support


(mS), all above the flat 200ma make this a picture perfect 15-min
buy setup.
104
Variations on the 15-min Buy Setup (PBS)
Pattern # 1: The Vanilla

5-min 15-min

NBs

Enter above
last bar’s high

A multi-bar pullback, inside of an igniting +WRB, to a smooth


r20ma on 15-min and a smooth r40ma on 5-min. Note also the
Breakdown with no follow through on the 5-min chart.

104
Variations on the 15-min Sell Setup (PSS)

Pattern # 1: The Vanilla

15-min 5-min

Pinpoint entry on 5-min Chart.

PSS Action Steps


1. Short below the prior bar’s low
2. Place stop above the prior bar’s high or
2a. Place stop above the current bar’s high
3. Set minimum target at the prior pivot low
4. Manage in between the stop and target
105
Variations on the 15-min Sell Setup (PSS)

Pattern # 1: The Vanilla

15-min 2-min

PSS Criteria
3 or more higher lows
3 or more green bars
3 or more higher highs

Pinpoint possible entry/entries


on this 2-min chart

106
Variations on the 15-min Buy Setup (PBS)

Pattern # 2: The Bleed My personal favorite

Enter on a
base breakout

Pristine Tip:
Never take the 1st
entry on a stock
plagued by “trapped 20MA
traders.” Let the Stop under
stock prove that it
has “healed”, either
base or under
through time or 15-min pivot
price, before you low
enter.

Pattern description (The Bleed):


A 15-min that has “recovered” by going sideways after a rapid rally
in the morning which resulted in a deep retracement. The “healing
process” is complete and a Pristine Breakout (PBO) can be taken
once the r20ma catches up with price. The entry combines a 2-min
breakout/trend change inside of a 15-min Pristine Buy Setup (PBS).
107
Variations on the 15-min Buy Setup (PBS)

Pattern # 2: The Bleed

= Possible entries/add & reduce

A double bottom at the r20ma and at reversal time was not enough to compel this
stock higher after putting in somewhat of a strong topping formation on the 15-min
chart and a sloppy pullback. It took 3 hours of bullish consolidation and a major
reversal time for the stock to get going. But once it did, the rest was history.
108
Variations on the 15-min Sell Setup (PSS)

Pattern # 2: The Bleed

d20ma

A strong counter-rally after rapid fall in the morning often needs


time to heal and gather steam before it’s ready to move lower
again. The 15-min triggered a sell setup but the drop did not go
anyway until the 20ma caught up with price. Enter short on a
breakdown under the base, as price meets the d20ma.
109
Variations on the 15-min Sell Setup (PSS)

Pattern # 2: The Bleed

d20ma
Minor Resistance (mR)

A strong rally into the gap fill (mR). The 15-min is played on base
breakdown off the d20ma.

110
Variations on the 15-min Buy Setup (PBS)

Pattern # 3: The Gap Fill


Note: While the stock is pulling
back, the small timeframes will
likely be in downtrends. If any of
the timeframes is putting in LHs
and LLs, it is important to not buy
the downtrend unless it breaks, OR
a –WRB on +vol. is produced into
the mS area.

Minor Support (mS) 20MA

Pattern description (The Gap Fill):


A gap up in in the stock and a rapid drop to the gap
fill (could also be a flurry move down at the open).
This drop to support is often solidified by a flat
200ma on the 15-min chart, or a rising 20ma on the
5-min or 15-min chart.
111
Variations on the 15-min Sell Setup (PSS)

Pattern # 3: The Gap Fill

5-min 15-min

Price drop to Minor


Support (mS) and
the f200ma on 5-
min and 15-min
timeframes
r20ma
r20ma

113
Variations on the 15-min Sell Setup (PSS)

Pattern # 3: The Gap Fill

15-min Daily

r20ma

114
Variations on the 15-min Buy Setup (PBS)

Pattern # 3: The Gap Fill

Minor Support (mS)

r20ma

A strong stock with a Continuation Gap that has


pulled back to gap fill (mS) and the r20ma on 15min
chart.

114
Variations on the 15-min Sell Setup (PSS)

Pattern # 3: The Gap Fill


Minor Resistance (mR)

Entry

d20ma

Volume Surge

115
115
Variations on the 15-min Buy Setup (PBS)

Pattern # 4: The W with a Double Bottom (DB)

Enter once the 2min downtrend


is broken. Add to position (if
risk to reward permits) once
the neckline is broken

20MA

Pattern description (The W & DB):


A 15-min that has triggered a PBS but is not ready to go yet, either
because the retracement is too deep, price is still extended from
the 20ma, or the stock is waiting on the market. The healing
process happens once the stock puts in a W pattern that sets up
up the unexpected. The downtrend on the 2-min chart suddenly
ends and the double bottom suggests strength, which brings in
additional traders that missed or passed on the initial PBS.
116
Variations on the 15-min Buy Setup (PBS)

Pattern # 4: The W with a Double Bottom (DB)

Pristine Tip: On many


occasions, the 40/60%
retracement level will
coincide with minor
support (mS). If and when PBS
40/60
this happens, the potential
potency and reliability of
the play rise. The same is 40/60
true in reverse for stocks in
a downtrend.

40/60

= Enter as soon as the prior


bar’s high is taken out

+Vol

117
Variations on the 15-min Buy Setup (PBS)

Pattern # 4: The W with a Double Bottom (DB) Target Area

mS

r20ma PBS in the PBZ

118
Variations on the 15-min Buy Setup (PBS)

Pattern # 4: The W with a Double Bottom (DB)

15-min

The power of the


W when it also
Daily
coincides with
mS on a Pro Gap

r20ma

119
Variations on the 15-min Buy Setup (PBS)

Pattern # 5: The W with a higher low (HL)

20MA

Pattern description (The W & HL):


A 15-min that has triggered a PBS but is not ready to go yet, either
because the retracement is too deep, price is still extended from
the 20ma, or the stock is waiting on the market. The healing
process happens once the stock puts in a W pattern that setups
up the unexpected. The downtrend on the 2-min chart suddenly
ends and the higher low suggests strength, which brings in
additional traders that missed or passed on the initial PBS.
120
Variations on the 15-min Sell Setup (PSS)

Pattern # 5: The M with a lower high (LH)

d20ma

PSS

= Enter as soon as the prior


bar’s low is taken out

121
Variations on the 15-min Buy Setup (PBS)

Pattern # 5: The W with a higher low (HL)

r20ma

= Enter as soon as the prior


bar’s high is taken out
122
Variations on the 15-min Buy Setup (PBS)

Pattern # 5: The W with a higher low (HL)

d20ma

Question: Where is entry?

123
Variations on the 15-min Buy Setup (PBS)

Pattern # 5: The W with a higher low (HL)

r20ma

W Pattern
& 20ma
Captured
price!! Today was a Pro Gap over a wide range
breakdown bar, trapping shorts!!!

124
Pristine Sell Set-up (PSS)
Pattern # 5: The M with a lower high (LH)
5-min Daily

d20ma

PSS

Today’s gap shows a major


failure on the daily chart

Shock Gaps and Failure Patterns set up the unexpected, thus trapping
traders. This tends to cause major problems for most ordinary
traders, but they can serve as major money making opportunities for
us. In other words, we are always prepared to profit from the a stock’s
failed attempt to do something highly expected by the majority.

125
Variations on the 15-min Buy Setup (PBS)

Pattern # 6: The W with a shakeout

20MA

Pattern description (The W & shake):


A 15-min that has triggered a PBS but is not ready to go yet, either because the
retracement is too deep, price is still extended from the 20ma, or the stock is
waiting on the market. After triggering a PBS, the stock appears to want to
continue lower, and in fact, breaks under the prior pivot low on the 15-min chart,
but only to get bought almost immediately. Weak hands are thus shaken out of the
play and new shorts join in, expecting the 2-min downtrend to continue. This helps
to fuel the rally and complete a W pattern on the 15-min chart.
126
Variations on the 15-min Sell Setup (PSS)

Pattern # 6: The M with a shakeout


15-min 5-min

2-min
Enter once the 2min or 5min uptrend is
broken. Add to position (if risk to reward
permits) once the neckline is broken – see
next page.

127
Variations on the 15-min Buy Setup (PBS)

Pattern # 6: The W with a shakeout

= possible “add” location

128
Variations on the 15-min Buy Setup (PBS)

Pattern # 7: The Mini into a Flat 200ma

20MA

Pattern description (Mini into 200ma):


A multi bar drop into a 200ma on the 15-min chart often stops the
stock dead in its tracks. While the 20ma is most powerful when it’s
trending, the 200ma is most powerful when it’s flat. Combine that
with a mini climactic drop with volume surge at the end, and you
get a strategy that can be traded almost independently of anything
else.

129
Variations on the 15-min Sell Setup (PSS)

Pattern # 7: The Mini into a Flat 200ma


5-min 15-min

d20ma
f200ma
f200ma

A multi-bar rally into the flat 200ma and d20ma on 15-min


chart. Note also the flat 200ma on the 5-min chart and the
prior high/minor Topping Tail from the open.
130
Variations on the 15-min Sell Setup (PSS)

Pattern # 7: The Mini into a Flat 200ma

15-min

f200ma

A two day drop into the flat 200ma and a narrow range,
changing of the guard bar. Note also the WRB, surge in
volume, at 11:15 RT.
131
Variations on the 15-min Buy Setup (PBS)

Pattern # 8: Twin Peaks

20MA

Shallow
Retracement

Pattern description (Twin Peaks):


A bearish stock that puts in a shallow retracement (counter rally)
and goes sideways. Instead of breaking down, the stock retests the
prior pivot high, which is typically a topping tail. The green (retest)
bar is immediately sold and turns into a TT bar. The stock then
breaks down under the base. This R&F makes the shallow
retracement playable, when it would not have been otherwise.

132
Variations on the 15-min Buy Setup (PBS)

Pattern # 8: Twin Peaks

5-min

The entry d20ma


triggers as
soon as the
stock breaks
under the TT.

133
Variations on the 15-min Buy Setup (PBS)

Pattern # 8: Twin Peaks

d20ma

Stop

Entry

134
Variations on the 15-min Buy Setup (PBS)

Pattern # 8: Twin Peaks

5-min

d20ma
20ma

Notice the
Shallow Head Fake!!
Retracement

135
Thank You For Attending
Advanced Scalping Techniques.
Remember, the material presented in this seminar is not to make you
trade more frequently or more aggressively. It is to make you a smarter,
more knowledgeable trader.

You should be more successful trading the strategies presented in this


seminar with the knowledge you’ve gained.

And Remember…

“Nothing in this world can take the place of persistence. Talent will not;
nothing is more common than unsuccessful people with talent. Genius will
not; unrewarded genius is almost a proverb. Education will not; the world
is full of educated derelicts. Persistence and determination alone are
omnipotent. The slogan 'press on' has solved and always will solve the
problems of the human race. “
~ Calvin Coolidge.

Advanced Scalping Techniques Presented by: Sami Abusaad Email: Sami@Pristine.com


136

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