Intraday Trading Techniques

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    IntraIntra--D

    ayTradingTec

    hniques

    D

    ayTradingTechniques

    W

    ith

    W

    ith

    Greg

    Capra

    Greg

    Capra

    CoCo--FounderofPristine.com,andCo

    FounderofPristine.com,andCo--Authorofthebestselling

    Authorofthebestsellin

    g

    book,To

    olsandTactics

    fortheMasterDayTrader

    book,To

    olsandTactics

    fortheMasterDayTrader

    Copyright2001,PristineCapitalHoldings

    ,Inc.

    C

    opyright2001,PristineCapitalHoldings

    ,Inc.

    Pristine.comPresen

    ts

    Pristine.comPresen

    ts

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  • 7/21/2019 Intraday Trading Techniques

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    Table

    ofContents

    Table

    ofContent

    s

    PuttingItTogether

    PuttingItTogether

    Introduction

    Introduction

    FourStyleso

    fTrading

    DayTrading

    Defined

    Psychologica

    lRequirements

    TheKeyConcepts

    TheKeyConcepts

    Candlesticks

    Candlesticks

    Retracements

    Retracements

    MovingAverages

    MovingAverages

    MarketTiming

    MarketTiming

    Support&Resistance

    Support&Resistance

    MultipleTim

    esFrames

    PristineBuy&SellSetup

    MovingAverageInterpretation

    MovingAverageInterpretation

    Candlesticks

    Simplified

    Candlesticks

    Simplified

    Foundation

    Foundation

    Combinin

    gFoundationand

    Combinin

    gFoundationand

    KeyConceptsforMastering

    KeyConceptsforMastering

    Intra

    Intra--day

    Trading

    day

    Trading

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    Introduction

    Introduction

    Introduction

    Introduction

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    FourStylesofTrading

    FourStylesofTrading

    T

    ypesofTrading

    T

    ypesofTrading

    FourStyles

    ofTrading:

    FourStyles

    ofTrading:

    Core

    Core;;Swing

    Swing;;

    Guerrilla

    Guerrilla;;DayDay

    Whichfallinto.

    Whichfallinto.

    TwoBroad

    TradingCategories:

    TwoBroad

    TradingCategories:Wea

    lth

    Wea

    lth;;Income

    Income

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    TwoBroadT

    radingCat

    egories

    TwoBroadT

    radingCategories

    W

    ealthTradingStyles

    W

    ealthTradingStyles

    IncomeTradingSty

    les

    IncomeT

    radingSty

    les

    CoreTrading

    CoreTrading

    SwingT

    rading

    SwingTrading

    GuerrillaTrading

    GuerrillaTrading

    DayT

    rading

    DayT

    rading

    -WeeklyCharts

    -Daily

    Charts

    -Daily

    ,60Min.&30

    Min.

    -HourstoDays

    -WeekstoMonths

    -DaystoWeeks

    -5,15&60-Min.

    -MinutestoHours

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    Intra

    Intra--dayT

    radingDefined

    dayT

    radingDefined

    Wha

    tisIntra

    Wha

    tisIntra

    --dayTrading?

    dayTrading?

    1)1)

    Astylethatcov

    ersaholdingpe

    riodofseveralminutestohours

    severalminutestohours.

    2)2)

    Threeformsof

    Intra-dayTradin

    g:

    Scalping

    ScalpingM

    omentum

    M

    omentum

    3)3)

    Thisstyleoftra

    dinghasbecomewidelyaccept

    edrecently.

    4)4)

    DayTradersuse5-&15-Min.chartstomake

    entriesandexits

    .

    5)5)

    DayTradingis

    bestusedonactive,highlyliquidstocks.

    6)6)

    DayTraderstry

    tocapturesmallergainswith

    gainswithm

    inimaldollarr

    isk

    m

    inimaldollarr

    isk.

    7)7)

    DayTradingis

    astyleoftradingthatMaynotbesuitableforALL

    MaynotbesuitableforALL!!

    Da

    y

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    Psychologica

    lRequirem

    ents

    PsychologicalTra

    dingRequ

    irements

    PsychologicalTra

    dingRequ

    irements

    Confidence

    Patience

    Discipline

    H

    OW

    AsystematicobjectiveMeth

    odofinterpreta

    tionisneeded.

    Subjectiveanalysismustbereducedor

    eliminated.

    Thisbuildsathoughtproc

    esswhichbuild

    sConfidence.

    Patience

    Discipline

    BecomesYourJob!

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    Fo

    und

    atio

    n

    Fo

    und

    atio

    n

    TheBuildingBlocks

    TheBuildingBlocks

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    Intra

    Intra--day

    TradingTools

    day

    TradingTools

    Toolso

    fthePristineDayTrader

    ToolsofthePristineDayTrader

    ChartingTools:

    ChartingTools:55--,15,15--&60

    &60--Min.In

    tra

    Min.In

    tra--daycharts

    daycharts

    displayedinCandlestickform.

    displayedinCandlestickform.

    Colorcodedvolume

    .

    Colorcodedvolume.

    T

    echnicalTo

    ols:

    T

    echnicalTo

    ols:2020--&200

    &200--periodsimplemovin

    g

    periodsimplemovin

    g

    average

    s.

    average

    s.

    APricePattern:

    APricePattern:ThePristineBuy&

    SellSetup.

    ThePristineBuy&SellSetup.

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    Intra

    Intra--dayChartin

    g

    dayChartin

    g

    2020--PeriodMA

    PeriodMA

    200200--Pe

    riodMA

    Pe

    riodMA

    The15

    T

    he15--MIN.Ch

    art

    MIN.Ch

    art

    Candlesticks

    Candlesticks

    ColorCodedVo

    lume

    ColorCodedVo

    lume

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    PristineCapitalHoldings,Inc.

    TheBattlebetweenBullsan

    dBears

    TheBattlebetweenBullsan

    dBears

    DeterminingWhoWonTheBattle

    DeterminingWhoWonTheBattle

    Bea

    rsWin

    Bea

    rsWin

    BullsWin

    BullsWin

    High

    High

    LowLow

    Close

    Close

    Open

    Open

    Open

    Open

    Close

    Close

    High

    High

    LowLow

    BodyBody

    Body

    Body

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    SimplifiedCandleLan

    guage

    SimplifiedCandleLan

    guage

    SixCand

    leConcepts

    SixCand

    leConcepts A

    llgivetradersthe

    SameMessage.

    Theprobabilityofth

    e

    currenttrendchanging

    isincreasing.

    Ahighprobability

    oppo

    rtunitymay

    exist

    totrade.

    BottomingT

    ail-BT

    ToppingTail-TT

    NarrowingRangeBodies-

    NRB

    NarrowRan

    geBodyNR

    WideRange

    Body-WRB

    ChangingoftheGuard-COG

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    The

    PristineBuyandSellSetup

    The

    PristineBuyandSellSetup

    Pris

    tineBuy&

    SellSetupF

    acts:

    Pris

    tineBuy&

    SellSetupF

    acts:

    Thesetupcanbetradedinalltimeframes.

    Thiscombinationofbarsisasegmentorsmaller

    partoftheoverallpattern.

    Itisasetofbarsthatoccursinadetailedformation.

    Itoffers

    highprobabilitywithlowrisk.

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    PristineCapitalHoldings,Inc.

    The

    PristineBuyandSellSetup

    The

    PristineBuyandSellSetup

    SellSetup

    SellSetup

    BuySetup

    BuySetup

    Eachnewbaro

    pensintheareaofthepriorba

    rscloseandalso

    closesabove/belowitsopeningp

    riceuntilareve

    rsalofthatoccurs.

    C

    lose

    Open

    Close

    Open

    Thesetup

    iscompleteaftera

    reversalcandleha

    sformed.

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    PristineCapitalHoldings,Inc.

    The

    PristineBuyandSellSetup

    The

    PristineBuyandSellSetup

    T

    hisisNOTwha

    twearelookingfor!

    Thesebarsoverlapeachotheranddon

    othavethe

    predictabilityw

    earelookingfor.

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    PricePatternRecognition

    Congestionpatternsarewhippy

    andunpredictable.Recognizedby

    overlapping

    candlesandmultiple

    failuresinb

    othdirections.

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    PristineCapitalHoldings,Inc.

    M

    ovingAverageGuidelines

    M

    ovingAverageGuidelines

    SimpleMovingAverage

    s

    Longposition

    sarefavoredwhenpricesareAbovetheir20-MAon

    a60-Min.chart.Entrypointsarefoundon5-or15-Min.charts.

    Longposition

    sareconsideredw

    henpricesareextendedBelowthe

    20-MAona6

    0-Min.butAbovetheir20-MAonthe5-Min.chart.

    Shortposition

    sareconsideredw

    henpricesareextendedAbovethe

    20-MAona6

    0-Min.butBelowtheir20-MAonthe5-Min.chart.

    ShortpositionsarefavoredwhenpricesareBelow

    their20-MAon

    a60-Min.chart.Entrypointsarefoundon5-or15-Mincharts.

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    PristineCapitalHoldings,Inc.

    MovingAverageGuidelines

    MovingAverageGuide

    lines

    T

    he60-MIN.Chart

    WhenPricesrise

    Abovethe20-M

    A.

    WhenPricesdecline

    Belowthe20-MA

    .

    LongTermIntra-Day

    20-MA

    200-MA

    FavorShortTrades

    FavorLongTr

    ades.

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    PristineCapitalHoldings,Inc.

    M

    ovingAve

    rageGuide

    lines

    M

    ovingAve

    rageGuide

    lines

    Extended

    BearishTrend

    Pricesm

    ove

    above20-MA.

    60-Min.Chart

    5-M

    in.Chart

    20-MA

    20-MA

    200-M

    A

    200-MA

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    Pristine

    KeyConce

    pts

    Pristine

    KeyConce

    pts

    Ca

    ndlestic

    k

    Candlestic

    k

    C

    onc

    epts

    C

    oncepts

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    CandlestickConcep

    ts

    CandlestickConcep

    ts

    ShortorNarrowingrangec

    andlestellusvolatilityislow

    ormomentumisdecreasing.

    LongorExp

    andingrangecandlestellusvo

    latilityishigh

    ormomentumisincreasing.

    Eachcandlewillgiveusinformationthateitherconfirms

    orcontradic

    tsthattrend.

    Askyourself,

    Whatdoesthecurrentcandle

    tellyouabout

    theprevailingtrend?Note:

    Atrend=3-5barsmovinginthe

    samedirection.

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    CandlestickConcepts

    CandlestickConcepts

    ChangingoftheG

    uardBar-COG

    ABullishCOGisdefined

    asthreeormore

    consecutive

    redbars

    followedbyagreenbar.

    PristineTip:

    Whiletherearediffe

    rentvariations,them

    essageisalways

    thesame!A

    reversalinmomentu

    mhasoccurred!

    ABearishCOGisdefined

    asthreeormore

    consecutive

    greenbarsfollowedbyaredbar.

    Bullis

    hCOGs

    BearishCOGs

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    CandlestickConcepts

    CandlestickConcepts

    NarrowingRa

    ngeBars-N

    RB

    PristineTip:Whiletherearedifferentvariations,themessageis

    alwaysthesame!Aslowinginm

    omentumisoccu

    rring!

    Narrowing

    Ran

    geBars

    Aseriesofbarsinwhichthedifferencebetweenthehighsandlowsis

    Narrowing.

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    CandlestickConcepts

    CandlestickConcepts

    N

    arrowRangeBodies-N

    R

    PristineTip:W

    hiletherearedif

    ferentvariations,themessageis

    alwaysthesame!Aslowingin

    momentumhaso

    ccurred!

    B

    arsinwhichthebodyofthecandleissmallrelativetotheoveralllength

    of

    thecandle.They

    mayhaveTailso

    neithersideofthebody. N

    arrowBodies

    NarrowBodies

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    CandlestickConcepts

    CandlestickConcepts

    ToppingTailBars-TT

    Barsinwhichp

    riceshadbeenhigher,thensupplyforcedprices

    lowerintothelowerpartofthe

    barsrange.

    PristineTip:Whiletherearedifferentvariations,themessage

    is

    alwaysthesame!Distributionhasoccurred!

    ToppingTail

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    CandlestickConcepts

    CandlestickConcepts

    B

    ottomingTailBars-BT

    Barsinwhichp

    riceshadbeenlower,thendem

    andforcedprices

    higherintotheupperpartofthebarsrange.

    PristineTip:Whiletherearedifferentvariations,themessage

    is

    alwaysthesame!Accumulationhasoccurred!

    BottomingTail

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    CandlestickConcepts

    CandlestickConcepts

    WideRange

    Bar-WRB

    A

    BarinwhichtheCandleBody

    isrelativelywidecomparedtothe

    m

    ostrecentbars

    .

    A

    WideRangeBa

    rafteranexten

    dedadvanceor

    declinetypically

    happensnearthe

    endofamove.AnNRorNRB

    willsignaltheturn.

    A

    WideRangeBarafteraperiod

    lowvolatilityignitesmomentumin

    th

    atdirection.

    WRBEnds

    WRBIgnites

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    CandlestickConcepts

    CandlestickConcepts D

    arkCloudCover

    PiercingPattern

    BullishEngulfing

    BearishEngulfin

    g

    CounterAttackLines

    ThrustingLines

    COGs

    COGs COG

    s

    BT

    NB

    NB

    NRB

    WRB

    WRB

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    Candles

    tickConcepts

    CandlestickConcep

    ts

    Narrow

    RangeBodies&

    Bars

    Hangman

    I

    nvertedHammer

    ShootingStar

    DOJI

    Harami

    L

    ongLeggedDoji

    NBs TT

    BT

    COG

    WRB

    NBs

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    Pristine

    KeyConce

    pts

    Pristine

    KeyConce

    pts

    M

    ovingAverage

    M

    ovingAverage

    C

    onc

    epts

    C

    onc

    epts

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    MovingAv

    erageConcepts

    MovingAv

    erageConcepts

    TherelationshipbetweenMAsand/or

    TherelationshipbetweenMAsand/or

    TherelationshipbetweenPriceandMAs

    TherelationshipbetweenPriceandMAs

    Serv

    eas:

    Serv

    eas:

    AnOverboug

    ht/OversoldIn

    dicator

    AnOverboug

    ht/OversoldIn

    dicator

    ARelativeStrengthIndicator

    ARelativeStrengthIndicator

    ARisk

    ARiskRew

    ardIndicator

    Rew

    ardIndicator

    ATooltohelpanticipatewhereareversalm

    ayoccur

    ATooltohelpanticipatewhereareversalmayoccur

    AGuidetopriceSupport&Resistance

    AGuidetopriceSupport&R

    esistance

    ABullish/BearishDivergen

    ceIndicator

    ABullish/BearishDivergen

    ceIndicator

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    PristineCapitalHoldings,Inc.

    MovingAverageConcepts

    MovingAverageConcepts

    AnO

    verbought/

    OversoldIndicator

    AnO

    verbought/

    OversoldIndicator

    Asthe20

    Asthe20--and200

    and200--

    MAsmovefarther

    MAsmovefarther

    apart,theodds

    ofa

    apart,theodds

    ofa

    reversalincrease.

    reversalincrease.

    Aspricesmove

    Aspricesmove

    fartherawayfrom

    fartherawayfrom

    the20

    the20--MAodd

    sofa

    MAodd

    sofa

    reversalincrea

    se.

    reversalincrea

    se.

    20-MA

    2

    00-MA

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    PristineCapitalHoldings,Inc.

    MovingAverageConcepts

    MovingAverageConcepts

    AMomentumo

    rBullish/Be

    arishDiverg

    enceIndicator

    AMomentumo

    rBullish/Be

    arishDiverg

    enceIndicator

    ACOGaftera

    newhighor

    new

    lowaccompanied

    byasmaller

    distancebetween

    priceandthe20-

    MAsignalsa

    slowingin

    Momentumanda

    Divergence.

    NewLowDivergence

    COG

    200-MA

    20-MA

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    MovingAv

    erageConcepts

    MovingAv

    erageConcepts

    AGuidetoSupp

    ort&Resistance

    AGuidetoSupp

    ort&ResistanceLookingtoth

    e

    Lookingtoth

    eleftleft

    ofanMAshould

    ofanMAshould

    pointtoward

    an

    pointtoward

    an

    areaofsupportor

    areaofsupportor

    resistance.

    resistance.

    PriceR

    esistance

    Price

    Resistance

    200-M

    A

    Looktothe

    Left

    Pric

    eSupport

    2

    0-M

    AAMovingAvg.is

    atoolthathelps

    thetrader

    anticipatewhere

    toenterpositions

    ortakeprofits.

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    PristineCapitalHoldings,Inc.

    MovingAverageConcepts

    MovingAverageConcepts

    AnticipateEntry/ExitandRisk/R

    eward

    AnticipateEntry/ExitandRisk/R

    eward

    Asprices

    move

    Asprices

    move

    furtherfr

    oman

    furtherfroman

    MAodds

    ofa

    MAoddsofa

    reversalincrease.

    reversalincrease.

    RISKis

    belowCOG

    PotentialRe

    ward

    Anticipated

    Exit

    TIP:Thecorrectionfromthe

    firstpoin

    tofresistance

    increasestheoddsthatthis

    pointwillbeovercome.

    Distance

    betweenMAs

    Anticipated

    Entry

    20-MA

    200-M

    A

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    MovingAv

    erageConcepts

    MovingAv

    erageConcepts

    A

    RelativeStrengthIndica

    tor

    A

    RelativeStrengthIndica

    tor

    ComparingtheMAs

    ofastockorindex

    toanotherwilltelluswh

    ComparingtheMAs

    ofastockorindex

    toanotherwilltelluswhichisstronger.

    ichisstrong

    er.

    Wide

    Wide

    Wide

    Wide

    N

    arrow

    N

    arrow

    200-MA

    200-MA

    20-MA

    20-MA

    Stronger

    Weaker

    Narrow

    Narrow

    Wide

    Wide

    Narrow

    Narrow

    Wide

    Wide

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    Pristine

    KeyConce

    pts

    Pristine

    KeyConce

    pts

    Retraceme

    nt

    Retraceme

    nt

    C

    onc

    epts

    C

    onc

    epts

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    PristineCapitalHoldings,Inc.

    RetracementsConcepts

    RetracementsConcepts

    R

    etracementlevelsaloneareno

    tenoughtocon

    siderenteringa

    p

    osition.APristinesetupisalso

    needed.

    T

    heRetracemen

    tlevelswearec

    oncernedwithare40,50and6

    0%

    T

    heRetracemen

    tlevelsareape

    rcentagemeasu

    rementbetween

    s

    ignificanthighsandlows.

    R

    etracementlevelsareusedtom

    easuretheSTR

    ENGTHor

    W

    EAKNESSofamoveCountertothePrevailingtrend.

    L

    earntoseeretr

    acementlevelswithoutdrawingthem.

    W

    hentrading,analysismustbe

    donequickly.

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    LevelsandInterpretations

    0 40 5060

    100

    100

    60 5040 0

    Aftera40%R

    etracement,the

    trendisstillconsideredpositive.

    Thetrendshouldcontinueintheoriginaldirection.

    40

    %

    40

    %