Levels and Interpretations

50%
0 100

40 60
50 50
60 40

100 0

After a 50% Retracement, the trend is considered positive to neutral.

The trend should continue in the original direction.
 Levels and Interpretations
60%
0 100

40 60
50 50
60 ? 40

100 0

After a 60% Retracement, the trend is considered neutral to negative.

The trend is in question.
 Retracement Concepts

A: Retraced rally
A by more then 60%
60%
(Weakness); expect
Retracement a move lower.

40%

50%

60%
60%
B: Retraced decline
50%
by more then 60%
40% (Strength); expect
stabilization and or
B a move higher.

Pristine Capital Holdings, Inc.

5-Min.
 Levels and Interpretations
80 - 100%
0 100

40 60
50 50
60 40

100 0

After an 80 – 100% Retracement, the trend is considered negative.

Watch for a double top or double bottom if a COG forms.
Expect a short-term rally / pullback.
 Levels and Interpretations
>100%
0 100

40 60
50 50
60 40

100 0

A retracement of over 100% takes out support or resistance and is

considered negative, but often sets up a high probability reversal.
 Retracement Concepts

Retracements greater
than 100% negate the
prior trend.

They often set up a high

100% probability reversal point.
Retracement
BUY! A move above a prior
40% high signals Strength
50% but is a High Risk Entry.
60%

Buying shallow pullbacks

of 40 to 50% after a COG
is low risk, professional
trading.
 Pristine Key Concepts

Support &
Resistance
Concepts
 Support and Resistance Concepts

Actual Support and Resistance

A series of price bars. They are guides as to
where traders may
Prior highs / lows / bases. anticipate a reversal.
An unfilled gap between price bars.

Subjective Support and Resistance

Also guides to anticipate
Moving Averages reversal points.
Retracements Without price points in
the same area, these are
Time
Pristine Capital Holdings, Inc.less significant.
 Support and Resistance Concepts
TT
Anticipate sellers in the
Unfilled Gap area of Unfilled Gap.
Resistance

Prior Low
Anticipate Buyers in the area of Prior Lows.
Support

Pristine Capital Holdings, Inc.

 Support and Resistance Concepts

Anticipate sellers in the area of Prior Highs.

Prior High
Resistance

TT

Anticipate a reversal in
the area of Unfilled Gap. BT
Unfilled Gap
Support
Pristine Capital Holdings, Inc.
Support and Resistance Concepts

Anticipate Sellers
NB

Resistance at Prior Base

TIP: What was Support

will become Resistance.
 Pristine Key Concepts

Market Timing
Concepts
 Market Timing Tools
The TRIN Indicator: Used to determine who is in control of the market.
Readings below 1.0 indicate more volume is entering advancing issues; Buyers in control.

Readings above 1.0 indicate more volume is entering declining issues; Sellers in control.

An Inverse Indicator
trol
con
in

Declining Trin is Bullish Rising Trin is Bearish

are
llers
Se

Buyers
are in control

Pristine Capital Holdings, Inc.

5-Min.
 Market Timing Tools
The TICK Indicator: Used to determine Market strength and directional changes.
Readings above 0 indicate more stocks trading on upticks, favors longs.
Readings below 0 indicate more stocks trading on downticks, favors shorts.

Prior highs and lows are used as points of support and resistance in the broad market.

+ 1000 indicates excessive buying; odds of a reversal are very high.

- 1000 indicates excessive selling; odds of a reversal are very high.

Broad Market Resistance

5-Min. Broad Market Support

Pristine Capital Holdings, Inc.
 Putting it All Together

Putting It All
Together
 Putting It All Together
Start with the
longer time frame.
200-MA
Divergence Prices test Support.

A WRB forms.
Be Alert!
20-MA A COG signals
the decline is over.

Moving Avg.
Prior Price Support
Divergence.
WRB
COG Check Market and
look for entry.

60-Min.
 Putting It All Together
TT 1Trin above 1.0
The TRIN Indicator and Rising.
Sellers are in
2 control.

2 Trin above 1.0

1 but Declining.
Sellers are
3 losing control.

WRB 3 Buyers taking

control, note
angle.
WRB

BT
5-Min.
 Putting It All Together

The TICK Indicator

Triple Bottom
TT
Resistance A > 100%
> 100% Retracement into
resistance signals
Strength.

Look to buy the

pullback.

TICK enters the

BT Broad Market
Resistance Area.

1 Support 2 3 COG Expect Momentum

To stall.
5-Min.
 Putting It All Together

TT 200-MA Oversold MAs Wide.

NR TT
Resistance Deep Retracement
WRB above the 20-MA.
Strength!
After a PBS, BUY!
60%
50% Target 200-MA
40% COG Price Resistance.
20-MA
Offer at Resistance.
A New low was made
as the Tick reached 60-Min. is Bearish.
Major Market Support!
5-Min.
 Putting It All Together
TICK TT TRIN TT

Bu
Resistance yers t
ak

l
in

ntro
gC

Co
o

in
nt

rs
le le
rol

S
BT
5-Min. 1 Support 2 3
5-Min. BT
COG

200-MA 200-MA TT
Sel
Divergence lers
in Co
ntr
ol
20-MA

COG
Prior Low Support 20-MA
COG

60-Min. Pristine Capital Holdings,

5-Min. Inc.
 Tools & Tactics – A Must Read

A Japanese proverb says, “If you

wish to know the road, inquire of
those who have traveled it.” The
authors of Tools and Tactics for
the Master Trader clearly know
the road. Their unique insights,
trading tactics and powerful tools,
so enjoyably presented, make
this a book that belongs on every
trader’s shelf.

Steve Nison, CMT - Author of

Japanese Candlestick Charting
Techniques
www.pristine.com
 Pristine Video Collection

For a list of other Pristine

videos, visit:
http://www.pristine.com/newvideo_core.htm
Pristine Seminars
 Pristine’s Intra -Day Trading Manual

Pristine’s Intra-Day Trading

Manual is available for
download at:
www.pristine.com/intraday.htm
© Copyright 1995-2001, Pristine.com. All rights reserved.

COPYING AND OR ELECTRONIC TRANSMISSION OF THIS DOCUMENT

WITHOUT THE WRITTEN CONSENT OF PRISTINE.COM IS A VIOLATION OF THE COPYRIGHT LAW