Pristine.

com Presents
This tutorial was originally titled “Micro Trading for a Living” and was recorded at the New York Online Trading Expo

Micro Trading Tactics
With

Oliver L. Velez

Founder of Pristine.com, and Author of the best selling book, Tools and Tactics for the Master Day Trader
Copyright 2000, Pristine Capital Holdings, Inc.

Basic Intro

Introduction

Basic Introduction

Types of Trading
•Four Trading Styles: Core, Swing, Guerilla, Micro

•Two Trading Categories: Wealth & Income

The Four Trading Styles

Wealth Building
•Core Trading –
•Covers a holding period of weeks to months. •This style of trading is the new form of investing. •The Core Trader typically uses weekly charts, and attempts to capture the entire weekly trend. •Core Trading is best used on key stock indices (DIA, SPY, QQQ, HHH, etc.).

Core Trading Chart

•This style of trading capitalizes on a very overlooked market niche. . •Swing Trading can be used on anything that moves. •The Swing Trader typically uses daily charts and attempts to buy the dips and side step the declines.The Four Trading Styles Wealth Building •Swing Trading – •Covers a holding period of 2 to 5 trading days.

Swing Trading Chart .

•Guerilla Trading can be used on all vehicles. •The Guerilla Trader typically uses daily and hourly charts and buys/sells late day strength/weakness.The Four Trading Styles Income Producing •Guerilla Trading – •Covers a holding period of 1 to 2 trading days. •This style of “hit and run” trading capitalizes on reliable overnight trading patterns. .

Guerilla Trading Chart .

•The Micro Trader typically uses 5. BO/BD. •Micro Trading can be used on all active stocks.& 15-minute charts and buys/sells dips/rallies. .The Four Trading Styles Income Producing •Micro Trading – •Covers a holding period of seconds to hours. •This style of active trading goes after small but frequent bite-sized gains.

Micro Trading Charts .

20 and 200 period moving averages •Market Timing Tools: Nasdaq & S&P Futures. NYSE and Nasdaq TICKs.Micro Trading Tools Tools of the Micro Trade •Charting Tools: 15 & 5-min charts. NYSE & Nasdaq TRINs .

Charting Tools Micro Charting Tools .

.5-Minute Chart Pristine Capital Holdings. Inc.

15-Minute Chart .

The Power of the 20 & 200 MAs Pristine Capital Holdings. . Inc.

Market Timing Tools Micro Market Timing Tools .

S&P and Nasdaq Futures Charts .

NYSE & Nasdaq TICK .

NYSE & Nasdaq TRIN .

9:30 to 11:15 (Trade BO/ Reversals) 2) Phase 2 .2:15 to 4:00 (Trade B/O Reversals) .11:15 to 2:15 (Mid-day Doldrums) 3) Phase 3 .3 Micro Trading Phases The 3 Micro Trading Phases of the Day 1) Phase 1 .

The 3 Phases of the Trading Day .

The 3 Phases of the Trading Day .

The 3 Phases of the Trading Day .

10:30. 11:15 Phase 2 Reversal Times – 12 & 1:30 Phase 3 Reversal Times .Reversal Times The 9 Micro Trading Reversal Times Phase 1 Reversal Times .9:35 10:00. 3:00. 3:30 .2:30.

Major Reversal Times .

Major Reversal Times .

Major Reversal Times .

Micro Trading Phase 1 Phase 1 Trading Tactics 1) The 9:30 Breakout/Breakdown Play 2) The 10:00 Reversal Play 3) Pristine’s 30-Minute Rule 4) The 11:00 Topping/Bottoming Play 5) The 200 Moving Average Play .

9:35 BD and a 10:00 Bottom .

9:35 BD. 10:00 Bottom. 11:00 Top .

9:35 BD. 11:00 Top . 10:00 Bottom.

10:00 Bottom. 11:00 Top .9:35 BD.

10:00 Bottom.9:35 BD. 11:00 Top .

10:00 Bottom.9:35 BD. 11:00 Top .

30-Min Buy. 11:00 Top .

30-Min Buy. 11:00 Top .

10:00 Top. 10:30 Reversal .

200 MA Play at 10:30 Reversal .

Micro Trading Phase 2 Phase 2 Trading Tactics 1) The 11:00 – 11:15 Topping/Bottoming Play 2) The Good Lunch Play 3) The 15-minute Trading Dip Play 4) The 1:30 Reversal Play .

11:00 – 11:15 Topping Play .

11:00 – 11:15 Topping Play .

The 1:30 Reversal Play .

The 15-Minute Trading Dip .

1:30 Rev & 15-Minute Dip .

11:00 Top and 1:30 Dip .

Micro Trading Phase 3 Phase 3 Trading Tactics 1) The 3:00 Topping/Bottoming Play 2) 200 Moving Average Play 3) The Late Day Breakout/down Play .

3:00 Topping Play .

3:00 Topping Play at 200 MA .

P r i s t i n e C a p i t a l H o l d i n g s. I n c .1 1 S o u t h B r o a d w a y .mail: e d i t o r s @ p r i s t i n e . N Y 1 0 6 0 1 T e l : ( 9 1 4 ) 6 8 2 -7 6 1 3 F a x : ( 9 1 4 ) 6 8 2-7 6 4 0 W e b : w w w . but the astute Pristine Day Trader knows how and when to quickly raise it to make it even tighter (2). c o m . C h a r t C o u r t e s y o f w w w . S u i t e 2 1 0 . PEOPLESOFT INC (PSFT) 5 -M i n u t e C h a r t Note that the Pristine Day Trader buys P S F T on the break of the most recent series of equal highs. W h i t e P l a i n s . 7 .c om N o t e h o w P S F T’ s b r e a k o u t o c c u r r e d on Above Average Volume. E x e c u t i o n e r .The Late Day Breakout (LDB) The Simple Art Of Trading® Part I Late Day Breakout Criteria 1) Stock is up on the day 2) Stock is above its opening price 3) Stocks is trading at or near the high of the day 4) Stock breaks out late in the day (anytime after 2:30 EST). not on the break of the high of the day. High of the Day 2 1 Our initial protective stop (1) is tight as it is. c o m E . p r i s t i n e .

Inc. BIOMET INC (BMET) 5-Minute Chart The Pristine Day Trader buys new high. White Plains.Executioner.7 6 1 3 F a x : ( 9 1 4 ) 6 8 2-7 6 4 0 W e b : w w w . Stop Note this near perfect Pristine B u y setup. c o m E -m a i l : e d i t o r s @ p r i s t i n e . Suite 210.com Pristine Capital Holdings.The Late Day Breakout (LDB) The Simple Art Of Trading® Part I Late Day Breakout Criteria 1) Stock is up on the day 2) Stock is above its opening price 3) Stocks is trading at or near the high of the day 4) Stock breaks out late in the day (anytime after 2:30 EST). Chart Courtesy of www. p r i s t i n e . NY 10601 T e l : ( 9 1 4 ) 6 8 2 . c o m . 7-11 South Broadway.

White Plains. STAPLES INC (SPLS) 5-Minute Chart T h e L a t e D a y B r e a ko u t ( L D B ) t o a n e w d a i l y high offers the Pristine Day Trader an excellent m i c r o -t r a d i n g o p p o r t u n i t y .7 6 1 3 F a x : ( 9 1 4 ) 6 8 2-7 6 4 0 W e b : w w w . p r i s t i n e . E x e c u t i o n e r . C h a r t C o u r t e s y o f w w w .The Late Day Breakout (LDB) The Simple Art Of Trading® Part I Late Day Breakout Criteria 1) Stock is up on the day 2) Stock is above its opening price 3) Stocks is trading at or near the high of the day 4) Stock breaks out late in the day (anytime after 2:30 EST). Inc. a s w e l l a s a s t r o n g overnight trading possibility. Suite 210. c om Pristine Capital Holdings. NY 10601 T e l : ( 9 1 4 ) 6 8 2 . c o m . 7-11 South Broadway. c o m E -m a i l : e d i t o r s @ p r i s t i n e .

.The Late Day Breakout (LDB) Late Day Breakout Criteria 1) Stock is up on the day 2) Stock is above its opening price 3) Stocks is trading at or near the high of the day 4) Stock breaks out late in the day (anytime after 2:30 EST).

The Late Day Breakout (LDB) Late Day Breakout Criteria 1) Stock is up on the day 2) Stock is above its opening price 3) Stocks is trading at or near the high of the day 4) Stock breaks out late in the day (anytime after 2:30 EST). .

trading tactics and powerful tools.Tools & Tactics – A Must Read A Japanese proverb says.” The authors of Tools and Tactics for the Master Trader clearly know the road. inquire of those who have traveled it. Steve Nison. “If you wish to know the road. make this a book that belongs on every trader’s shelf. so enjoyably presented.Author of Japanese Candlestick Charting Techniques . Their unique insights. CMT .

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