Dan Gibby - Mastering Breakouts and Breakdowns

8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns

1/101

Mastering BreakoutsMastering Breakouts

and Breakdownsand Breakdowns

Dan GibbyDan Gibby

Lead Moderator, Pristine.com Advanced Stocks and DerivativesLead Moderator, Pristine.com Advanced Stocks and DerivativesTrading Room, and Senior Pristine Certified TrainerTrading Room, and Senior Pristine Certified Trainer

Copyright 2006, Pristine Capital Holdings, Inc.Copyright 2006, Pristine Capital Holdings, Inc.

Pristine.com PresentsPristine.com Presents


2/101

DisclaimerDisclaimer

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.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS.

UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUALTRADING. 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. 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.

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

Copyright 1994-2006 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.

2


3/101

Table of ContentsTable of Contents

IntroductionIntroduction

The Pristine Method

Trading Style and Time Frames

Trading Plan

Basics and FoundationBasics and Foundation

Initial Pristine Breakout/Down

PBO/PBD from Wide Range Bars

PBO/PBD from Gaps

Retracement After Breakout/Down

Secondary Breakout/Down

Late Day Breakout/Down

Gaps Negated in Morning

Fluid moves vs. Congestion

Wide Range Bars (WRB)

Volume

Quality Consolidation

Pristine ESP

Concluding ThoughtsConcluding Thoughts

Breakout/down StrategiesBreakout/down Strategies

3


4/101

What This Seminar isNot About

4

The intricacies of The Pristine Method (TPM)

Tools, tactics, or setups taught in TPM Parts 1-2

Trading Plan and Managing Your Trading Business

Risk management, proper share size, psychological aspects

Futures, options, commodities, and derivatives

Classical, technical, macro, or fundamental analysis

Level II analysis or direct access trading

Other topics included at Pristine Trading University


5/101

Introduction toIntroduction toThe PristineThe Pristine

MethodMethod

5


6/101

Who is Pristine?Who is Pristine?

Established in 1994 by Oliver Velez and Greg Capra,

Pristine provides insight, intelligence and education for

the self-directed trader

Much more than stock tips and buy-sell-hold advice, The

Pristine Method guides both new and experienced

traders to a more intuitive understanding of the markets

The Pristine educational system helps you understand the

markets and prepare you to trade objectively

Offer worldwide educational seminars, DVDs, trading

software, real-time trading rooms, and trading newsletters6


7/101

ONSITE SEMINARS

REAL TIME TRADING ROOMS

DVD

The BOOK

ONLINESEMINARS

NEWSLETTERS

COACHING

Eliminating The Barriers To Entry!

Pristine Capital HoldingsPristine Capital Holdings

7


8/101

RANKED # 1RANKED # 1 in Trading Education

by: FEATURED by:

Pristine Public RecognitionPristine Public Recognition

8


9/101

Traits of a Successful TraderTraits of a Successful Trader

Trading is a Business treat it like one!

Choose a definedMethod

Choose a time frame in which to trade from

Choose which stocks and/or Futures you will trade

Money Management

Discipline and Patience to followyour Method 9


10/101

Pristine Successful Trader MatrixPristine Successful Trader Matrix

COMPELLING TECHNICAL PATTERNTPM 1-2

TRADING PLAN

MANAGE IN BETWEEN

ENTER AND SET PROTECTIVE STOP

Wealth/Income

Hardware/Software

Setups

Instruments

Listed/OTC

Reward-Risk

Share Size and #

Market Internals

Management Rules

Pivots For Exits

Winning/losing

Trade Review

Continuing Education

Demon elimination

Discipline/Patience

NO SETUP,

NO TRADE!!

StopTarget10


11/101

Trade Types

The Pristine Method teaches specific Compelling Patterns

These should be clearly highlighted in your Trading Plan

PBS/PSS

CBS/CSS

Guerrilla Trades

Breakouts and Breakdowns

W and M Formations

Pinch Play

Failed Patterns

Bearish Gap that Bullies11

PBS

+COG

CBS


12/101

Breakout andBreakout andBreakdownBreakdownFoundationFoundation


13/101

13

Introductory ConceptsIntroductory Concepts

Bases and consolidations

Types of breakouts and

breakdowns

Quality of setups

Fluid versus choppy moves

When to trade with or against

the intended move

Using Pristine ESP

Congestion

areas

Fluid move

leaves little

congestion

Concept Review


14/101

14

Price CongestionPrice Congestion

Prices move between areas of

support and resistance

Congestion areas have

overlapping bars, tails, and

gaps

Fluid moves have consecutive

bar moves with relatively equal

openings and closings

Prices retrace easier without

congestion to the left

Congestion

areas

Fluid move

leaves little

congestion


15/101

15

IntraIntra--Day Pattern Into CloseDay Pattern Into Close

Hourly EOD Base

Opening price here

has higher odds of

retracementOpening Gap above

Base has high odds

of moving up

15-Min.15-Min.

15


16/101

Volume AnalysisVolume Analysis

Volume = Money and represents commitment or lack thereof

Price tells us what a stock is doing; Volume tells ushow

> 500,000 average 30-day volume

Volume increases should occur in the

direction of the PBO/PBD; reduced

Volume on Retracement

Volume increase without price moving is a warning

Volume is secondary to price . Price is King! 16


17/101

Proper Base or Consolidation

Consolidation is aresting periodin an existing trend

Want controlled, tight consolidation, with few to no

overlapping bars or significant gaps and tails

Base of at least 8 - 10 bars

Provides the base of support for breakout, or base of

resistance if break down

Low risk, high-odds strategy using The Pristine Method

17


18/101

Quality ConsolidationQuality Consolidation

Tight arrangement of bars

with few tails, overlapping

bars, and gaps 18

20MA

20MA

20MA


19/101

Improper Basing/ConsolidationImproper Basing/Consolidation

Poor consolidation: tails,

overlapping bars, and gaps 19

20MA 20MA


20/101

Pristine ESPPristine ESP

Pristine ESP willsearch PBO/PBD in

many time frames

20


21/101

Breakouts and Breakdowns

21

Can be traded on any time frame and in any trend

Every trade needs a compelling pattern and little congestion

above (for longs) or below (for shorts)

Increased Volume a plus

Not all New High/Lows are Buyable/Shortable

Apply other concepts from The Pristine Method

Pristine ESP scans to find tradable candidates

General Comments


22/101

Determining Targets and Stops

22

Need generous Reward (price target) to Risk (stop loss)

Generally, targets will be:

Resistance/Support for PBO/PBD

Take after a multi-bar move

At major moving average, if corresponds with congestion

Stops are always placed slightly below the support area for

longs, or slightly over the resistance area for shorts


23/101

Initial andInitial andSecondarySecondaryBreakoutBreakout


24/101

PBO to New Uptrend

24

The Pristine Method teaches various ways to trade

PBO/PBD from a sideways trend to new trend. We will cover:

Initial PBO

First Retracement

Secondary Breakout

Wide Range Bar (WRB) out of a base

Other bullish/bearish Retests


25/101

Breakout Types

25

11

22

33

1.1. Initial BreakoutInitial Breakout:: The stock breaks above resistance after aQuality Consolidation.

2.2. First RetracementFirst Retracement:: The stock retraces towards the Initial

Breakout point, and reverses on support. This is thesafest entry

point, provided it retraces in a compelling manner.

3.3. Secondary BreakoutSecondary Breakout:: The stock moves above the Initial Breakout

(prior high), after consolidating at the prior high.

11

22

33


26/101

Initial bullish move,

bullish consolidation inupper 1/3

BuyPBO (Vol. a

plus)

Proper Initial Pristine BreakoutProper Initial Pristine Breakout

Stop LossStop

26

20MA


27/101

Improper Pristine Breakout PlayImproper Pristine Breakout Play

0

40

50

60

100

Retracement analysis is

used to objectively measure

the Strength or Weakness of

a move counter to the

prevailing trend

Some suggest buying over

a prior high, irrespective of

the Retracement level

We sell into extended

rallies over prior highs

Incorrect PBO: Extended

27


28/101

Secondary PBO/PBD

We sell into that

band wagon

mentality of buyingnew highs if the

stock is extended

Secondary

PBO/PBD are

tradable if theyhave consolidated

over time at the

prior high28

0

40

50

60

100

Correct PBO: Consolidated at prior high


29/101

Buyable Secondary PBOBuyable Secondary PBO

These were both

recommended as breakout

longs one day in a

competitors newsletter

Not a Pristine PBO since

very extended to make new

highs (also 5-day MA of

TRIN a CBS under prior low)

Is this Secondary

PBO buyable? Why?

PBO

+WRB after

failed PBD

1.1. Initial BreakoutInitial Breakout

2.2. First RetracementFirst Retracement

3.3. Secondary BreakoutSecondary Breakout

33

2211

29


30/101

Breakout Types

1.1. Initial BreakoutInitial Breakout


3.3. Secondary BreakoutSecondary Breakout

11

22

2233

22

33

33

20MA

30


31/101

Stops on Breakouts

This is lowrisk entry

Trail stop after

two bars

Buy First Retracement

on support

Trail stop after

two bars

Buy pull

back20MA

31


32/101

Poor Pristine BreakoutsPoor Pristine Breakouts

Some traders wouldbuy these as breakouts

What has to happen to

make them buyable?

Would you be a buyer or

seller into strength here?

32

Buy

PBO?


33/101

PBO From BasePBO From Base

The stock builds

support over time

+WRB to the top of

the base

BuyPBO over+WRB out of base

Manage in between

What does the

consolidation after

the PBO imply?

Buy over +WRB

through resistance

Stop Loss

Could you add

on this PBO?

33


34/101

34

PBO on PrePBO on Pre--Market Economic NumberMarket Economic Number

Futures had bullish PBO at 8:30 Economic Number

S&P Futures 5-Min. Nasdaq Futures 5-Min.

QUIZ: Was the InitialPBO buyable? First

Retracement? Second

PBO?


35/101

Pristine Breakout AnalysisPristine Breakout Analysis

Correct: Gap from

consolidation

Incorrect:

Extended

Correct: Pull back

into +WRB

Incorrect: Extended Factors

Extended

before PBO?

Consolidate in

a tight range

before PBO?

Congestion to

the left?

Tails,

overlapping

bars, and gaps?35

Incorrect: Deep

retracement


36/101

PBO and Retracement Quiz

36

QUIZ: Name the type of Setup

at each letter and discuss

whether or not buyable.

C

F

EDB

GH

A 36

20MA


37/101

PBO to New Uptrend

Pull back to gap fill

from 2x bottom; buyover prior bars high

Buy retracement

since extended

Aggressive Pristine

entry, stop under base

PBO after

2x bottom

Stop

buy

37


38/101

38

Patterns on Multiple Time FramesPatterns on Multiple Time Frames

GOOG - Daily

Daily Monthly

Weekly

Monthly

Reverse H&S

Failed

breakdown

38H

SS

PBO

PBO

PBO


39/101

PBO/PBD Stock ScanningPBO/PBD Stock Scanning

Pristine ESP Scans

39

Swing Trading Module

Narrow Range 7 Setup; Daily Basing; Daily Above Average

Up/Down Volume

Guerrilla Trading Module

10/10 Buy/Sell Setup; Wide Range Up/Down Bars;

Bullish/Bearish Engulfing Bars

Micro Trading Module

15-Min. Basing; Basing in Top 2% of Days Range; Gap Up and

Strong; Gap Down and Strong; 30-Min. Gap Buy/Sell

Basic Trading Module

Above Average Up/Down Volume; 52-Week High/Lows; Top

20% Gainers/Losers; One Month High


40/101

40

Pristine ESPPristine ESP 3030--Min. Gap BuyMin. Gap Buy

15-Min.

Stocks that gap up/down and then make new highs/lows after

the first 30-Min. session often ignite new moves

Pro Gap and +WRB,

consolidation at high

Triggered


41/101

Initial &Initial &SecondarySecondary

BreakdownBreakdown41


42/101

Breakdown Types

42

1.1. Initial BreakdownInitial Breakdown:: The stock breaks below support after aQuality Consolidation.

2.2. First RetracementFirst Retracement:: The stock retraces towards the Initial

Breakdown point. This is the safest entry point, provided itretraces in a compelling manner.

3.3. Secondary BreakdownSecondary Breakdown:: The stock moves below its InitialBreakdown point, after consolidating at the prior low.

11

22

33

MRMR

MSMS


43/101

Breakdown Types

1.1. Initial BreakdownInitial Breakdown


3.3. Secondary BreakdownSecondary Breakdown

Initial PBD

1 & 31 & 322

22

11

33

QUIZ: Which Secondary

Breakdowns are quality?

4343


44/101

44

Gap Below Prior LowGap Below Prior Low

Daily

ISRG 5-Min.

Gap under

+WRB

Short 5-

Min. low

Gap under

support

Add Secondary

PBD. Why?

Short first

retracement

stop

44


45/101

30-Min. Low on Upgrade and Bear Gap

45

Morgan Stanley: Punk Ziegal

analyst on CNBC says stock

should be bought aggressively

here; those selling making mistake

5-Min.Short First Retracement

or 30-Min. low

Daily

15-Min.

Bear Gap, deep

into Support

Gaps undermuch support

Stop

loss

45


46/101

Initial and Secondary PBD

46

Relentlessselling with

weak bounces;

short PBD and

Retracements

Gap and

+WRB

Buy FirstRetracement

Short Initial

PBD at d20ma

Short

Retracement

20MA


47/101

Bear Flag BreakdownBear Flag Breakdown

Measurement met at priormonthly major support

Monthly

Implied Measurement

Met Near Support

Price bounded by

two parallel trend

lines, against the

prevailing trend

Volume typically

lighter in flag

Short below

trend line

Stop over priorhigh

Implied

measurement47

H d d Sh ld


48/101

48

Head and ShouldersHead and Shoulders

The left and right

shoulders are

opposite the higher

headin both

distance and time

Short PPD of the

neckline on

expanding volume

Implied

measurement

S

Short PBD

Stop

Loss

Target Area

H

S

P i i B kd Q iP i ti B kd Q i


49/101

Pristine Breakdown QuizPristine Breakdown Quiz

QUIZ: Identify the type and

quality of each marked trade.

E

ID

C

B

A

H

F

G

K

JL

M

49


50/101

PBO/PBD FromPBO/PBD From

Wide Range BarsWide Range Bars

WRB Aft L V l tilitWRB Aft L V l tilit


51/101

WRB After Low VolatilityWRB After Low Volatility

Many PBO/PBD fail

If sloppy consolidation,

wait for WRB that closes

outside the consolidation

The WRB shows

commitment and has highodds of follow through if

no congestion to left

PBD

PBO

Stop Loss

51

B lli h WRB O t f BB llish +WRB O t of Base


52/101

Bullish +WRB Out of BaseBullish +WRB Out of Base

Hourly

Add pull back

in +WRB

+WRB

PBO

52

15-Min.

+WRB PBO

with r20/40ma

Daily

PBD FromPBD From WRBWRB


53/101

PBD FromPBD From WRBWRB

Short -WRB PBD, stop

over consolidation

Bearish, tight consolidation

at bottom of WRB

WRB/Engulfing

after weak bounce

Short Initial PBD; leavesoverhead congestion

Add retracement

53

WRB PBDWRB PBD


54/101

--WRB PBDWRB PBD

What do these tails tell us,

particularly after the prior

+WRB from base?

Bearish action afterfailed buy setup

Short PBD

What does thisconsolidation imply?

54

Ri k f B i B f WRB C l t d


55/101

At A, the bulls were

confident while the bar was

being formed

How would the bulls feel if

the bar closed like B?

AB

+WRB becomes

bearish TT at bars close

Short under

WRB/engulfing

Risk of Buying Before +WRB Completed

55

Unhappy bulls

PBO/PBD From Base Against TrendPBO/PBD From Base Against Trend


56/101

PBO/PBD From Base Against TrendPBO/PBD From Base Against Trend

Stop Loss

Stop Loss

Wait for +WRB to

close above base

56

Wait for -WRB to

close below base



57/101


Buy Initial PBO;

add over +WRBfrom base

Sell on

Novice Gap

57

20MA

+WRB closed

outside the base

No congestion

above, so odds ofcontinuation high

Trail stop under a

prior bars low or

when far from 20ma


58/101

PBO After +WRB Through ResistancePBO After +WRB Through Resistance


59/101

PBO After +WRB Through ResistancePBO After +WRB Through Resistance

Bullish gap

after -Trap

+WRB through 3 prior

highs and trend line

Stop

loss

59

PBD From Bearish ConsolidationPBD From Bearish Consolidation


60/101

PBD From Bearish ConsolidationPBD From Bearish Consolidation

-WRB undersupport; short PBD

QUIZ: Where is

stop and target? 60

20MA

Breakdown AfterBreakdown After --WRBWRB


61/101

Breakdown AfterBreakdown After WRBWRB

15-Min.DailyDaily Daily

60-Min.

DailyDaily

60-Min.

60-Min.

Short under support;

no support below!Short under Support/-WRB

Stop Loss (inside bars

high made 2x top)

61

20MA

20MA

Breakdowns and ManagementBreakdowns and Management


62/101

62

Buy setup failure

-WRB shows

bears in control

Breakdowns and Managementea dow s a d a age e

Short under WRB after

close under support

First Retracement shortable

62

+WRB PBO


63/101

63

+WRB fromPBS on MS

+123

15-Min.Daily

20MA

20MA

63


64/101

Breakout andBreakout andBreakdownBreakdownFrom GapsFrom Gaps

Initial PBO From Pro GapInitial PBO From Pro Gap


65/101

pp

Initial bullish move,

bullish consolidation

in upper 1/3, thenProGap, has high odds

Conflict resolved

Stop Loss

Pro Gap - one that ignites

a new move up or down

Novice Gap one in the

same direction of an already

extended move, andtypically ends the move

Continuation Gap one

that continues a move,

typically at half-way points

65

Gap Questions Before TradeGap Questions Before Trade


66/101

66

Does the Gap create a compelling pattern?

Where is the next area ofSupport or Resistance?

Did it Gap from a consolidation or from an already extended move?

Is the Gap too excessive to invalidate a favorable Reward-Risk?

Does it set up a compelling pattern intra-day after the Gap?

Is the Reward-Risk at least 3:1?

If so, enter and manage in between per your Trading Plan

Gap Under Bearish ConsolidationGap Under Bearish Consolidation


67/101

67

pp

MORE EXAMPLESDaily

Pro Gap, no bounce,

short 5-Min. low

Stop over

bearish

consolidation

67

Gap OverGap Over --WRBWRB


68/101

Bullish pattern?

Distance to next

Resistance?

Gap from

consolidation?

Gap too

excessive?

Bullish intra-day

pattern?

20MA

Daily

Gap overbearish bar

68

First target is

prior high

Gap Over Resistance, No CongestionGap Over Resistance, No Congestion


69/101

5-Min.CNTF - DailyTARO - Daily 5-Min.

Bear Pro Gap,

shallow bounce

Shorted bounce,

stop high

G

A

P

5-Min.KLIC - Daily

Gap over

resistance

Buy 5-Min. PBSBuy 5-Min. PBS

Buy 5-

Min. high

5-Min.Gap over

resistance

Daily Add PBO

Are Gap

Questions

satisfied? Stop

PBO from Pro GapPBO from Pro Gap


70/101

Daily

Weekly

Daily

Daily5-Min. DailyDaily

Pro Gap over

WRB and resistance

Buy bullish intra-

day pull back

Pro Gap

Buy 5-Min. high

70

PBO Multiple Time FramePBO Multiple Time Frame


71/101

Daily

Weekly

Daily

5-Min. Pro Gap over resistance

Weekly

Daily

Weekly

Monthly

71

PBO after

+WRB

from base

Pro Gap ExamplesPro Gap Examples


72/101

72

Gap over bullish

consolidation

Gaps out of multi-

week consolidation

Bullish gap

after -Trap

72

Daily Daily

Pro Gap PBO to New Uptrend


73/101

Pro Gap

from base

Buy pullback

Daily 5-Min.

73

Add

PBO

Pro Gap Over Prior HighPro Gap Over Prior High


74/101

74

Bullish gap

after -Trap

Gap overconsolidation

Daily 5-Min.

Tight bullish

consolidation; buy

high, stop low

74

PBD and PBO


75/101

75

Gap over

resistance

+WRB

Target Area

Short

PBD

Buy First

Retracement

+WRB

75

Daily

Bearish Gap PBDBearish Gap PBD


76/101

Daily

TIP: A gap just under a

+WRB with no support

is powerful!

Failed CBS/BT/+COG on MS

20MA

Weekly

Failed buy setup atprior low, no support

20MA

76


77/101


78/101

Late DayLate DayBreakouts andBreakouts andBreakdownsBreakdowns

78

Late Day Breakout (LDBO)


79/101

Setup, Entry and Exit Guidelines

8 - 10 bar base or consolidation in a tight range

In the upper 1/3 of the preceding bullish move

Above the 20MA on intra-day charts

No significant resistance/congestion to the left

Up on the day, and over the prior bars close

Breakout over resistance, on Vol., after 2:15 ET

Buy over resistance, with stop under base

Sell under reversal bar; other far from 20MA, or

congestion 79


80/101

Late Day Breakout


81/101

15-Min.

Daily Daily 15-Min.

30-Min.

Daily 15-Min.

60-Min.

Buy LDBO

Up on day and

over prior close

Tight bullish

base near high,during doldrums,

and into r20ma

Bullish hourly

consolidation

81

20MA

20MA

20MA


82/101


83/101

Late Day Breakouts


84/101

15-Min.

Daily Daily

15-Min.

Buy LDBO, stop

under base

Bullish

+WRB PBO

PBO

84

20MA

20MA

20MA

20MA

15-Min.

Buy LDBO

Stop

20MA

Bullish Gap IntoBullish Gap Into --WRBWRB


85/101

85

PRX - Hourly

Bullish gap

after 15red bars

5-Min.Daily

Daily (at close)15-Min.

Add LDBO

Buy 30-

Min. high

85

Gap


86/101

Late Day Breakout Examples

(B)


87/101

(A)(B)

(C) (D)

87

20MA

20MA

20MA

20MA

Above Average Up/Down VolumeAbove Average Up/Down Volume


88/101

88

Volume shows the

magnitude of interest

Unusually highup/down volume in the

opening Reversal

Period is often

associated with Proup/down moves

Keep Pristine ESPalert box open and

evaluate each issue on

multiple time frames

15-Min.

+WRB out ofbase on Vol.

LDBO Quiz

Whether15 Mi

D il ENG


89/101

Whether15-Min.

QUIZ: Rank

each PBO

A

B

C

D

Daily - ENG

QUIZ: Rank

each PBO

15-Min.

D

Daily - ENG

Daily

QUIZ: Identify entry, stop,

and target on each LDBO.

15-Min.

B

C

D

E

A20MA

PBO

F

Late Day BreakdownLate Day Breakdown

LDBD C it i

60 Mi


90/101

LDBD Criteria

Target = Demand

Increased volume onbreakdown

Down on the day

Below priordays close

Basing at low

Consolidation

near low into

d20ma

Short

breakdown, stop

over base90

60-Min.

Stop

20MA

Bearish consolidation at

low of WRB; short PBD

Late Day Breakdown Examples

(A) (B)


91/101

(A) (B)

20MA

20MA

(D)20MA

20MA

(C)

91

Whether

Finding LDBD Using Pristine ESPFinding LDBD Using Pristine ESP


92/101

Whether

UnderMicro Trader

Scan:

15-Min. Basing

Gap Down and

Weak

Last Trade atLow

Stocks Near

Lower 2% Daily

Range92

20MA

20MA


93/101

LDBO/LDBDLDBO/LDBDFrom MorningFrom Morning

Gaps NegatedGaps Negated

Bearish Gaps That Bully Resistance

Oversold stock with little congestion to the left


94/101

Oversold stock with little congestion to the left

The stock gaps down significantly and then rallies strong at

the open, on Increased Volume (Vol.)

Bar closes with a +WRB on the 30-Min. chart, at or through

intra-day resistance

The +WRB should have a very small, if any, bottoming tail

Look for a bullish intra-day entry, and manage in between

Reverse applies for bullish gaps negated in morning94

Bearish Gap That Bullies ResistanceBearish Gap That Bullies Resistance

15-MinDaily

5 MiD il


95/101

Hourly

15 Min.Daily

+WRB close after

gap, no BT

Bullish basing

through doldrums;

buy LDBO

Extended daily and Gap

95

20MA

20MA

20MA

Retracement

buyable

Bearish Gap

under Support

5-Min.Daily

G

A

P

Add PBO

95

Bearish Gap That Bullies ResistanceBearish Gap That Bullies Resistance

15-Min.Daily


96/101

Hourly

15 Min.Daily

+WRB close after

gap, no BT

Extended daily and Gap

96

20MA

20MA

20MA

Buy LDBO

Bullish Gap That BuriesBullish Gap That Buries

11 1130-Min.30-Min.


97/101

1. Bullish Gap

2. 100% Gap Fill in first 30-Min.

3. Short PBD (or other bearish

entry) on smaller time frame, if

no congestion to left

11 11

22

2233

33

97

20MA

Using Pristine ESP to Find Candidates


98/101

98

Go to Scans; Micro Trader; Gap Down and Strong (for

longs), and Gap Up and Weak (for shorts)


99/101

ConcludingConcluding

ThoughtsThoughts

Pristine Services and EducationPristine Services and Education


100/101

Thank You For Joining Us!Thank You For Joining Us!


101/101

At this point, you have the information to build on. Its up

to you to work with the material and now make it yours.

There are no secrets or proprietary indicators to makingmoney in the markets. Defining an opportunity, where the

odds are in your favor, then having the discipline to

follow your trading and money management rules is allthat you can do. Your job is to objectively monitor, then

change as the market suggests you should.

In closing, we at Pristine wish you great success!

101

Dan Gibby - Mastering Breakouts and Breakdowns

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