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Oliver L. Velez
Table of Contents
Introduction
The Major Time Shift
The Major Analytical Shift
Fundamental vs. Technical
Foundation
Four Styles of Trading
Core Trading Defined
Core Trading vs. Investing
Macro Core vs. Micro Core
The Never-ending Battle
Tools of the Core Trade
The Strategies
Mighty MA Play
Pristine Buy/Sell Zone
CBS & CSS Plays
Putting It All Together
Introduction
Introduction
Fact # 1
Fact # 2
Today, the
typical investor
looks to hold a
stock position for
4 months.
Pristine Theories
Theory # 1
We believe, the
investors average
holding period for
any stock will drop
to 4 weeks.
inside of 2 years!!
Theory # 2
Long-term
Investing,
commonly referred
to as the buy-andhold approach, is
becoming less
effective by year!
Fact # 1
Fact # 2
20 years ago,
fundamental
analysis was
considered the
only proper way
to make market
decisions
Today, the
purely
fundamental
analyst is
virtually extinct.
Mark Douglas, author of
The Disciplined Trader and Trading In
The Zone
Foundation
Types of Trading
Four Styles of Trading: Core; Swing; Guerilla; Micro
Which fall into.
- Weekly Charts
- Weeks to Months
- Hours to Days
Swing Trading
Micro Trading
- Daily Charts
- Days to Weeks
- Minutes to Hours
At All Times!
d20ma
d40ma
Investor Buys!
r20ma
r40ma
The Investor is a loser!
Core Trader Buys!
Shorts!
r40ma
r40ma
r20ma
CSS
3-5
Candlestick Bars
S
20ma
B
BT
40ma
20ss
3-5
3-5
Pristine Charting Power!!
Color Coded Volume
B
CBS
Volume Climax
Small Bars
Color coded Volume
Japanese Candlesticks
3) 20sma
4) 40sma
B
B
r40ma
B
r20ma
High
High
Low
Close
Open
Open
Close
Low
Bulls Win
Bears Win
Pristine Capital Holdings, Inc.
3 to 5 Bar Rallies
Pictures of Greed
Think Sell
Think Sell
Think Sell
3 Bars Up
PristineUp
Capital Holdings, Inc.5 Bars Up
4 Bars
3 to 5 Bar Rallies
Pictures of Pain
Think Buy
3 Bars Down
Think Buy
Think Buy
4 Bars Down
5 Bars Down
4 Green Bars
3 Green Bars
3 Green Bars
3 Red Bars
5 Red Bars
3 Red Bars
5 Red Bars
5 Green Bars
4 Red Bars
3 Red Bars
3 Red Bars
Topping Tail
1) 6 Up Bars in a row
2) Topping Tail (TT)
6-Up
6-Up
$160 Catastrophe!
r20ma
r40ma
r20ma
r40ma
Bottoming Tail I
1) 6 Down Bars in a row
2) Bottoming Tail
110% Party!
6-Down
Bottoming Tail
r40ma
6-Down
Bottoming Tail
r20ma
r40ma
r20ma
Bull COG
Pristine Capital Holdings, Inc.
Topping Tail
Bear COG
5-Up
5-Up
$120 Catastrophe
r40ma
r40ma
4 Up Bars
5 Down Bars
3 Up Bars 3 Up Bars
5 Down Bars
3 Down Bars
Tails
Bull COG
Bull COG
Bull COG
4 Up
Bars
The Strategies
r20ma
Pristine Capital Holdings, Inc.
d40ma Play
20 MA Play I
1) Rising 20 MA (r20ma) +
2) Rising 40 MA (r40ma) +
3) r20ma > r40ma =
Stock Will Rally Off r20ma
3 D/Bars
3 D/Bars
r20ma
r40ma
20 MA Play II
1) Rising 20 MA (r20ma) +
2) Rising 40 MA (r40ma) +
3) r20ma > r40ma =
Stock Will Rally Off r20ma
r20ma
r40ma
20 MA Play III
1) Declining 20 MA (d20ma) +
2) Declining 40 MA (d40ma) +
d20ma
d40ma
20 MA Play IV
d20ma
d40ma
1) Declining 20 MA (d20ma) +
2) Declining 40 MA (d40ma) +
3) d20ma < d40ma =
Stock Will Decline Off d20ma
Sell Zone
d40ma
d20ma
r20ma
r40ma
Buy Zone
r20ma
r40ma
r20ma
r40ma
d20ma
d40ma
Climactic Buy
Snap
Back
to 40
ma
20ma
Wide Distance
Wide Distance
40ma
rs
Ba
wn
Do
ore
rM
3o
ma
to 20
Back
Snap
3o
rM
ore
Up
Bar
s
Climactic Sell
1) 6 Up Bars in a row
2TT
6-Up
6-Up
$75 Catastrophe
r20ma
r40ma
3TT
3TT
6-Up
4) Climactic Volume
6-Up
$85 Catastrophe
r20ma
r40ma
Climactic Volume
Tail/COG
5-Up
5-Up
3) Bearish COG
4) Wide Distance from 20ma
$70 Catastrophe
r40ma
d20ma
125% Party!
1) 9 Down Bars in a row 9-Down
2) Climactic Volume
3) Far from 20ma
Climactic Volume
9-Down
Climactic Volume
d20ma
d20ma
6-Down
COG
6-Down
A 100% Party
COG
d20ma
4-Down
$12 Party
4-Down
COG
COG
Climactic Volume
Climactic Volume
1) Topping/Bottoming Tails
or
Powerful Core
Trading
Combinations
Location