Trading The Pristine Method

Trading the Pristine Method
www.pristine.com
Disclaimer
It should not be assumed that the trading methods and techniques presented in this book or the 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 ACTUAL TRADING. 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 and attendees. 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.
Active Trading can result in large losses and may not be an activity suitable for everyone.
Copyright © 1994-2013 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. SN:
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2
Trading the Pristine Method®
The Introduction
www.pristine.com
Table of Contents
1. Introduction 3. Pristine Buy and Sell Short Setups

• The Six Major Time Frames • The Anatomy of an Uptrend
• The Four Trading Styles • The Anatomy of a Downtrend
• Understanding Candlesticks • The Pristine Buy Setup (PBS)
• The Pristine Sell Setup (PSS)
2. The Foundation
• Pristine’s Master Trading Key #1
• The Only Way to Win
• The Only Way to Lose
• Pristine’s Master Trading Key #2
• Combining Pristine’s Master Trading
4
Table of Contents
4. Power Trading Combos Stages 2 & 4 6. Transitional Phases A, B, C, D

• The Changing of the Guard • The Breakout – Three Criteria
• Narrow Range Bar • The Breakdown – Three Criteria
• Above Average Volume • Drawing Proper Trend Lines
• Minor Support and Resistance • The Seven Stock Market Events
• The Mighty Moving Averages
• The Pristine Buy and Sell Zones 7. The Climactic Setups
• The Climactic Buy Setup (CBS)
5. Power Trading Combos Stages 1 & 3 • The Climactic Sell Setup (CSS)
• Major Support and Resistance
• The “Pause” That Refreshes
5
Table of Contents
8. Pristine’s Master Trading Plan 10. Pristine’s #1 Micro-Trading Tactic

• Building a Trading Plan • The Late-Day Breakout
• Money Management • Momentum Trading Approach
• Tactics Description
11. Where to Go From Here
9. Guerrilla Trading Tactics • Your Next Few Days
• Bullish and Bearish Gap Plays • Follow Up Services
• Bullish and Bearish Surprise Plays • Future Classes
• Bullish and Bearish 20/20 Plays
• +/- 123 Continuation Play
• Bull and Bear Trap Plays
• Bull and Bear Continuation Plays
• Bull and Bear Mortgage Plays
6
Abbreviations
The Pristine Method - Abbreviations
Abbrev. Name Abbrev. Name Abbrev. Name
-123 Bearish 123 Cont. Guerrilla Play +COG Bullish Changing of the Guard mS Minor Support
+123 Bullish 123 Cont. Guerrilla Play -COG Bearish Changing of the Guard NFT No Follow Through
10/10 WRB w/Tails < 10% of Real d20ma Declining 20 Period Moving NBB Narrow Body Bar
Body Avg. NRB Narrow Range Bar
20/20 WRB w/Tails < 20% of Real r20ma Rising 20 Period Moving Avg. NG Novice Gap
Body -DD Deadly Doji PG Professional Gap
+20/20 Bullish 20/20 Guerrilla Play +DD Darling Doji PBD Pristine Breakdown
-20/20 Bearish 20/20 Guerrilla Play DTL Down Trend Line PBO Pristine Breakout
40/60 40/60 Percent Retracement UTL Up Trend Line PBS Pristine Buy Setup
ANR Add and Reduce DTLB Down Trend Line Break PSS Pristine Sell Setup
AON All or Nothing UTLB Up Trend Line Break PBZ Pristine Buy Zone
BBB Bar by Bar GBI Green Bar Ignored PSZ Pristine Sell Zone
BDF Breakdown Failure RBI Red Bar Ignored PCT Pristine Certified Trainer
BOF Breakout Failure GnC Gap and Crap Guerrilla Play PTT Pristine TrainedTrader
BOM Beginning of Month GnS Gap and Snap Guerrilla Play R&F Retest and Failure
EOM End of Month -GS Bearish Gap Surprise Guerrilla RT Reversal Time
EOD End of Day +GS Bullish Gap Surprise Guerrilla SO Shake Out
BT Bottoming Tail HH Higher High SSS Secondary Sign of Strength
TT Topping Tail HL Higher Low SSW Secondary Sign of Weakness
2T Double Top LH Lower High TGT Target
2BT Double Bottoming Tails LL Lower Low TPM The Pristine Method
2TT Double Topping Tails MOM Middle of Month -Trap Bear Trap Guerrilla Play
-BM Bearish Mortgage Play MR Major Resistance +Trap Bull Trap Guerrilla Play
+BM Bullish Mortgage Play mR Minor Resistance +Vol Increased Volume
CBS Climactic Buy Setup MS Major Support +WRB Bullish Wide Range Bar
CSS Climactic Sell Setup -WRB Bearish Wide Range Bar
7
Pristine’s Six Trading Time Frames
The Pristine Method® considers three major time-frame

groups as follows:
• Long-term timeframes
• Intermediate-term timeframes
• Short-term timeframes
Let’s briefly review each broad trading

8
category…
Trading Time Frames
Long Term Intermediate-term | Short term
• Used for broad studies, cyclical analysis and long-term trading

Yearly Chart (each bar = approx. 240 trading days)
Used for studies and tests on broad indices like the DJIA & S&P 500
Pristine Trading Time Frame #1
Monthly Chart (each bar = approx. 20 trading days)

Used by Pristine Trained Traders to find tradable cycles* and long-term trades.
Each month, all stocks in your universe are to be viewed via the monthly chart.
*Dominant cycles can last for many years. Some of the cycles we have found
have lasted more than a decade. Once found, these cycles can offer the long-term
trader some incredibly large trading opportunities. It is however important to
note that all cycles, even the very dominant ones, do eventually end.
9
Yearly Chart of the DJIA
Semi-Log Chart Crash of 2000 (?)
Trading Tip: This time frame is used

primarily to do studies on broad Crash of 1987(?)
indices over many decades.
The Pause that Refreshes
20ma
40ma
1980’s Breakout
Crash of 1929 40/60
Pristine CSS
The PBZ
PBS w/ Bottoming Tail
Volume Surge
10
Monthly Long-term Chart
Trading Tip: On the last day of each month, the

Pristine Trained Trader (PTT) looks at each stock
in his Trading Universe through the eyes of the
monthly chart.
Circles = Pristine Trading Opportunities
PBS
20ma
PBS 40ma
11
Finding Cycles w/ the Monthly Chart
(3/98) (3/00) (3/02)

(3/99)
Resistance
(3/01)
(10/97)
(10/01)
Support
(10/98) (10/02)
(10/96) (10/00)
(10/99)
12
Trading Time Frames
Long Term Intermediate-term Short Term
• Used primarily for Swing trading & Core trading

Weekly Chart (each bar = 5 trading days)
This time frame is visited each week by Pristine Trained Swing and Core traders, but is
primarily the domain of the Core Trader. Each weekend, all stocks in your Trading
Universe should be viewed via the weekly chart. Note: This is where the Core trader will
spend 90% of his time and get 85% of his entry and exit signals.
Daily Chart (each bar = 1 full trading day)

This time frame is visited each day by Pristine Trained Intra-day and Swing traders, but is
primarily the domain of the Swing trader. Each night, all stocks in your Trading Universe
should be viewed via the daily chart. This is where the Swing trader will spend 90% of
his time and get 85% of his entry and exit signals.
13
Weekly Intermediate-term Chart
Trading Tip: Each weekend, the Pristine Trained
Trader (PTT) looks at each stock in his Trading Stage 3
Universe through the eyes of the weekly chart.
CSS
40ma
20ma
PBS w/BT
14
Daily Intermediate-term Chart
PBD
40ma
PSS 20ma
Trading Tip: Each day, the
Pristine Trained Trader (PTT) PSS
scans through his Trading
Universe for Pristine Setups.

CBS w/ BT
15
Trading Time Frames
Long Term | Intermediate-Term Short-term

• Used for Day, Micro & Scalp Trading
Hourly Chart (each bar = approx. 60 minutes)
Visited by micro traders at times to eliminate noise and to gain a clearer perspective
of the overall “several day trend.” A great time-frame for 2-day plays. The
Guerrilla Trader and the active Swing Trader uses this time frame frequently.
Intra-day Charts (15-, 5- & 2-minute trading bars)
This is where the day trader, micro trader and scalper live their entire lives. Nearly
all entry and exit points for these three traders are derived in these time frames.
Trading Tip: We focus primarily on 15-minute charts for day trading, 5-minute charts for micro-trading
and 2-minute charts for scalping. For NASDAQ, S&P futures, E-minis and extremely active issues like
AMZN, YHOO, EBAY, DELL, MSFT, CSCO, etc., we’ll often drop to a 2- minute chart to gain greater
clarity and refinement for our entries and exits. We also use the 2 and 5 minute charts for intra-day
entries on strong, trending stocks.
16
60-minute Short-term Chart
Trading Tip: The Pristine Trained Trader (PTT) uses the 60-minute
chart to find Swing, Guerrilla & Day trading opportunities. CSS
PBO
PBS
20ma
PBS
PBO
NFT
200ma
17
15-minute Chart of GSF
Trading Tip: The Pristine Trained Trader (PTT) uses the

15-minute chart to find ‘day trading’ opportunities CSS
(minutes to hours).
PBS
200ma
PBS 20ma
18
Circle = Pristine Trading Opportunity
Retest @ MS
PBS 20ma
200ma
Trading Tip: The Pristine Trained Trader (PTT) uses the

WRB 5-minute chart to find ‘micro trading’ opportunities
(minutes).
19
Trading Tip: The Pristine

Trained Trader (PTT) uses the
PSS 2-minute chart to find ‘scalp
trading’ opportunities
20ma (seconds to minutes).
PSS
PSS
PBS PBS
20
Pristine’s Four Trading Styles
The Pristine Method® Considers Four Major

Trading Styles available to the Pristine
Trained Trader (PTT).
These styles are grouped into Two Broad categories:
• Wealth Building Style
• Income Producing Style
21
Pristine’s Wealth Styles
Wealth Building Style Income Producing Style
1. Core Trading (2 weeks to months). This wealth-building style of trading

attempts to capture major trends in the market and/or underlying stock. Most
traders will use this style for longer term accounts such as IRAs, KEOGHs and
other less time sensitive accounts.
• Trading Tip: The Pristine Trained Trader uses weekly charts to generate Core Trading
ideas.
2. Swing Trading (2 to 10 days). This wealth-building style of trading is designed

to capture short-term swings in an on-going trend, while side stepping the brief
countertrend moves. It attempts to take advantage of a very overlooked niche,
one that is too short for large institutions and too long for day and floor
traders.
• Trading Tip: The Pristine Trained Trader uses daily charts for Swing Trading.
Note: The Pristine Method® of Trading calls for having at least one of the two
wealth-building styles at work at all times. Some of the country’s top traders have
amassed very large sums of money utilizing one or both of these trading styles. We
encourage that you frequently look for wealth building trades. 22
Weekly Core Trading Chart
The Core trader looks for Pristine Trading

opportunities in the direction of the 20ma and
holds on as long as the stock remains above
its a) 20ma for shorter-term trades, or b) d
40ma for longer-term trades. ren
e T
r
Co 20ma
40ma
23
Daily Swing Trading Chart
Some Swing Traders sell only part of their

position on the rallies, while they continually
Sell
add on the pullbacks as long as the stock
stays in an uptrend.
Sell
4
d
Sell
c Buy Buy
3
b 2 r20ma
Buy
a r40ma
The Swing Trader buys dips at or near the

20ma and sells rallies away from the 20ma.
24
Pristine’s Income Styles
Wealth Building Style Income Producing Style
1. Guerrilla Trading (1 to 2 days). This income producing style utilizes a sniper’s
“hit and run” approach. It looks to buy a stock on Tuesday, for instance, and
sell it on Wednesday, Thursday or before. Conversely, it calls for shorting a
stock on one day, only to cover within the next two days.
• Trading Tip: The Pristine Trained Trader uses daily and hourly charts to find
Guerrilla Trading opportunities.
2. Micro-Trading (seconds to hours). This income producing style is what most

people refer to as day trading, and it serves as a major part of the trading
foundation for anyone who wants to make a living from the markets.
• Trading Tip: The Pristine Trained Trader uses 2-, 5- and 15-minute charts to
find Micro-trading opportunities.
Note: The Pristine Method® of Trading calls for specializing in both Guerrilla and
Micro-Trading, and it calls for always having both of the styles at work. These are
the styles that most professional traders focus on. They must be mastered if one
wants to trade for a living. 25
Daily Guerrilla Trading Chart
20/20 20/20
-GS
Circles show four, 2 to 3 day

+GS Guerrilla Trading Opportunities
26
15-Minute Day Trading Chart
The Pristine Day Trader looks to buy dips at or

near the r20ma as long as it is above the 200ma.
Pristine’s
Day Trading Formula
20ma is rising (r20ma) +

r20ma > 200ma =
Buy dips and breakouts r20ma
near the r20ma
200ma
27
5-Minute Micro Trading Chart
Pristine’s
Micro Trading Formula
r20ma > 200ma =
Buy dips and breakouts
near the r20ma
r20ma
PBS
Breakout
The Micro Trader looks to buy dips at or near
the r20ma as long as it is above the 200ma.
200ma
28
2-Minute Scalp Chart
Pristine’s
Scalp Trading Formula
r20ma > 200ma =
Buy dips and breakouts
near the r20ma
Wide Distance*
20ma
200ma
*Wide distance between 20ma & 200ma calls for caution
29
Using Candlesticks w/The Pristine Method®
Why Use Candlesticks?

• Japanese Candlesticks focus on the relationship between the
open and close of a bar, while the Western Bars focus on the
close vs. the prior period’s close.
Note: As long as the underlying stock closes higher than the prior day’s close, Western thought
says it’s positive; however, according to the Japanese view, this is not necessarily the case. If on an
up day, the stock closes below its open, the Japanese would regard it as negative.
• The use of Japanese Candlesticks will help the Pristine Trained

Trader (PTT) to determine who won the battle between Supply
and Demand which is the most important element of Technical
Analysis.
Important: We exclusively use candlestick bar charts in our trading analysis in all time frames.
30
Understanding Candlesticks
Determining Who Won The Battle
High High
Close Open
Open Close
Low Low
Bulls Win Bears Win
31
Understanding Candlesticks
Bulls Win Bears Win
No One Wins Bottoming Tail (BT) Topping Tail (TT)
The last group in control has the BT = Buyers have taken control
edge TT = Sellers have taken control
32
A Pristine Statistical Fact
•Pristine Tip:
Bulls and Bears cannot consistently win more than
5 battles in a row. Each side typically surrenders to
the other after 3 to 5 battles won.
•However…
If the Bulls or Bears win significantly more than 5
battles in a row, a sharp reversal will often be the
price paid for such an abnormal winning streak.
33
3 to 5 Bar Rallies
3 Pictures of Greed
Really, Really
Really
Think “Sell”
Think “Sell”
Think “Sell”
Tip: More than 5 up

bars sets up the
possibility of a
climactic decline.
3 Bars Up 4 Bars Up 5 Bars Up

34
3 to 5 Bar Declines
3 Pictures of Fear
Tip: More than 5
down bars sets up
the possibility of a
climactic rally.
Really Really, Really

Think “Buy” Think “Buy” Think “Buy”
3 Bars Down 4 Bars Down 5 Bars Down

35
Count Your Way To Profits
4 Up Bars 3 Up Bars 5 Down Bars

3 Up Bars
5 Down Bars
4 Up
Bars
3 Down Bars 3 Down Bars Tails
Tip: The Weekly Time Frame adheres to Pristine’s
Counting Method the best. The sideways trend also
yields better than average results with this method.
Chart Courtesy of MasterTrader.com
36
The Foundation
www.pristine.com
37
Two Master Keys to Trading Success
Introduction to the Pristine Method® of Trading
In this section, we will reveal two of Pristine’s Master Trader Keys to

understanding how all markets work. The following two concepts
form the cornerstone of every one of our sound trading
techniques and tactics. After gaining a clear understanding of
these two building blocks, the Pristine Trained Trader (PTT)
should never again find himself confused and not knowing what
to do. In fact, once these two powerful, but simple concepts are
understood and mastered, the PTT should rarely find himself on
the wrong side of the market. In case you don’t know, 80% of all
trading losses can be attributed to being on the wrong side of the
market. Let’s begin!
38
The Market’s Basic Unit/Atom –
Pristine’s Master Trader Key # 1
• The picture you see to the right is the only Stage 3
Indecision
Sell/Short
complete movement a stock or the market can
make. There is no other movement possible.
• The entire life of a stock and/or a market is

comprised of this cycle repeated time and time
again.
• This cycle forms the basis for one’s ability to

predict future price movements based on the
laws of psychology and probability. Stage 2
Stage 4
Greed
Fear
• This cycle, sometime referred to as the Basic
Unit, helps the PTT know the current status of
the stock or market as well as what is likely to
occur next.
• The key to trading successfully is knowing where

you are in the cycle. Buy
Stage 1 Repeat
Ambivalence
• This cycle is comprised of four distinct stages,
which in turn or ruled by four distinct emotions.
Buy Area Sell Area
39
The Market’s Basic Unit/Atom –
Pristine’s Master Trader Key #1
Stage 3
• In Stage 2, the Pristine Trained Indecision
Sell/Short
Trader (PTT) focuses on buying
most of the time.
• In Stage 4, the Pristine Trained

Trader (PTT) focuses on
selling/shorting most of the time.
Stage 2
• In Stages 1 & 3, the Pristine Trained Greed
Stage 4
Trader (PTT) can focus on both, Fear
buying and shorting.
• Stage 1 back to Stage 1 can span

over decades (macro), or over
minutes (micro), depending on the
time frame. Buy
Stage 1
Stage 1
Ambivalence
Ambivalence
• This Cycle/Unit is made up of only
three (3) primary trends. Buy Area Sell Area
40
The Only Way To Win or Lose
The Only Way To Win The Only Way To Lose
Correct
Sell Area
Faulty
Buy Area
Faulty
Correct Sell Area
Buy Area
Traders who win consistently - no matter Traders who lose unconsciously playing
what time frame - have simply learned to the stock cycle in this faulty manner: They
play the cycle/unit in this manner: They buy somewhere after Stage 2 is proven to
buy somewhere during the start of Stage 2 all and they sell after it is obvious they
and sell somewhere before Stage 4 begins. were wrong. 41
Full Cycle with a Macro Top
Stage 3
Pristine Note: Stage 1s will tend to be
narrow and tight, while macro Stage 3s
will often be wide and whippy. Sell
Stage 1 = Ambivalence Wide Bars Wide Bars

Stage 3 = Indecision
Stage 2 Stage 4
Narrow Bars
Narrow Bars
Stage 1
Buy
Stage 1
42
The Full Cycle with Macro Top
Pristine Note: Stage 1s will tend to be Stage 3

narrow and tight, while macro Stage 3s
will often be wide and whippy.
Sell
Stage 1 = Ambivalence Wide Bars

Stage 2
Wide Bars Stage 4
Narrow Bars Narrow Bars

Stage 1 Buy Stage 1
43
Full Cycle with Micro V-Top
Pristine Note: At times, Stage 3s will Stage 3

be sharp and abrupt. These tops often
result in very severe collapses.
Wide Bars
Wide Bars
Stage 1 = Ambivalence
Stage 2
Stage 4
Stage 1 Stage 1
44
Full Cycle w/ Micro Topping Tails (TT)
Pristine Note: At Stage 3 2 TTs produced a 95% decline

times, Stage 3s will be
sharp and abrupt.
These tops often result 1 TT produced
in very severe a 55% decline
Wide Bars
collapses.
Wide Bars
Stage 1 = Ambivalence Stage 4
Stage 2
Narrow Bars
Narrow Bars Stage 1
Stage 1
45
Full Cycle with TT Micro Top
Pristine Note: At times, Stage

3s will be sharp and abrupt. Stage 3
These tops often result in very
severe collapses. Wide Bars
Wide Bars
Stage 2
Stage 4
Narrow Bars
Stage 1 Narrow Bars
Stage 1
46
Full Cycle w/ Deadly Doji Micro Top
Pristine Note: At times, Deadly Doji Stage 3

Stage 3s will be sharp and
abrupt. These tops often
result in very severe
collapses. Wide Bars
Wide Bars
Stage 2
Stage 4
Stage 1
Stage 1
47
Stage Transition In Micro Form
Is this TT acceptable? Stage 3

This is a topic we discuss
in depth in ATS.
Buy Breakout
Stage 2 Stage 4
Note: the wide distance

from the 20ma at the start
of stage 3.
48
Pristine’s Master Trader Key #1
• There is only one cycle in existence. Stocks and/or the market can do nothing else but
repeat this cycle over and over. No other movement is possible. This is the master key
to predicting future stock movements. Remember it!
• This cycle is made up of four (4) distinct stages, which in turn are driven by four (4)
distinct emotions or psychological states. The 4 stages must, and always do, occur in
the same sequence. This is also an important key to price prediction based on the laws
of probability and psychology.
• Stage 1, the bottoming period, is driven by Ambivalence. This is the stage during which
traders are indifferent and largely uninterested in participating. The interest level is low
because of the prolonged poor market condition of the preceding Stage 4.
• Stage 2, the bullish period, is driven by Greed. This is the stage during which traders
will make the most money. The mindset that dominates Stage 2 is one that wants to be
in the game, at any cost, which is why the ‘Greater Fool’ Theory rules. Most participants
will make money during Stage 2, except those who come in too late and/or those who
stay too long.
49
Summary of Pristine’s Master Trader Key #1
• Stage 3, the topping period, is driven by Uncertainty. During this stage, bullish
sentiment begins to change, as a growing number of players begin to doubt
the stock’s (market’s) ability to continue its upward momentum.
• Stage 4, the bearish period, is driven entirely by Fear, which typically escalates
or crescendos into a climax near the bottom. Most traders will lose money
during this stage. Those who have held on too long begin to exit in an attempt
to keep some of their gains. Those who have entered late typically exit late;
but like a herd, they tend to exit all at once, which in turn creates the climactic
part of the decline. Once the last batch of traders exits, the worst is over.
More downside may still occur, but the negative momentum will have subsided
after the climax.
• Important: There is only one way to lose. If a trader thoroughly understands

the only error that leads to losing, he will be more prone to avoid it.
50
Summary of Pristine Master Trader Key #1
• A stock, or any market, can only be in one of the 4 stages at any given time.
Note: A stock can, however, be in different stages in different times frames.
• Identifying which stage a stock is in is vital to successful trading. It helps to
reduce losing trades, and adds a quality to one’s decision making that is
unrivaled.
Note: Pristine Trained Traders (PTTs) never place trades without first knowing in which stage those
trades are being done.
• The PTT will make most of his big profits during Stage 2 and Stage 4.
Note: Core Trading and Pristine Pyramiding are styles that work best in Stages 2 and 4.
• Keep in mind that each stage calls for a specific trading strategy.
Note: The PTT has Stage 1 tools, Stage 2 tools, Stage 3 tools and Stage 4 tools.
• All a trader needs to do is learn how to handle himself in each of the 4 stages.
Note: The PTT who knows how to handle himself in all 4 stages has about 85% of the market’s activity covered.
• The PTT trades with the flow of each stage 90%+ of the time.
Note: Using the appropriate trading tools and tactics, the PTT only goes against the flow of each
stage roughly 10% of the time. 51
The Four Transitional Phases
• The 4 stages are divided by or linked by 4 Transitional Phases.
• The 4 Transitional phases tend to be the most difficult periods to trade.
• The uncertainty of these Transitional Phases tends to produce whippy and

erratic moves but also provides some of the most powerful ones!
• The highest degree of market mastery will be obtained when the trader learns
how to handle the transitional phases as well as the 4 dominant stages.
• The entire 4-stage cycle is made up of 3 primary trends.
52
The 3 Primary Trends: Master Trader Key #2
Master Trader Key #2
The price of a stock can only:
• Go up,
• Go down, or
• Go sideways.
Note: In reality, there are only two trends. What we refer to as the Sideways Trend is
nothing more than a temporary pause or pit stop between the two most dominant
trends, the Up Trend and Down Trend.
53
The Pristine Up Trend Defined
Up Trend Down Trend | Sideways Trend
• Defined by 1) higher highs, 2) higher lows, 3) a rising 20-period

moving average (r20ma), 4) a rising 40-period moving average
(r40ma) and 5) a relatively even space in between the two rMAs.
* Higher highs and lows refers to ‘pivots’ being higher
The Up Trend is also known as Stage 2.

Trading Tip: Once the above Pristine Up
Trend criteria are met, the PTT’s sole
objective is to buy every single
dip/pullback and breakout in the Stage 2
Up Trend. Not one should ever escape
the PTT.
= Pristine Buy Opportunity
Trading Tip: Scan your Trading Universe and make a list

of stocks currently trending in a powerful Stage 2. 54
The Pristine Uptrend Defined
E
Note: the smooth nature of the r20ma and the Pristine
r40ma, these are referred to as “railroad tracks.” Uptrend Criteria
1) Higher Highs
*All pullbacks are buyable 5 (A – E)
D
2) Higher Lows
C 4 (1 – 5)
3 3) Rising 20ma
r20ma r20ma
B
2 4) Rising 40ma
r40ma r40ma
A
5) Even space
Even Space between the
1
20ma & 40ma
(Railroad Track)
ALL PULLBACKS
ARE BUYABLE!!
55
E
Pristine
Note: the smooth nature of the r20ma and the
Uptrend Criteria
r40ma, these are referred to as “railroad tracks.”
D 1) Higher Highs
*All pullbacks are buyable 5 (A – E)
C
2) Higher Lows
(1 – 5)
B
3) Rising 20ma
4 r20ma
r20ma
A 3 4) Rising 40ma
r40ma
2 5) Even space
r40ma
between the
Even Space
20ma & 40ma
1 (Railroad Track)
ALL PULLBACKS
ARE BUYABLE!!
56
Pristine Uptrend Criteria

1. Higher Highs (a –d) c
2. Higher Lows (1 – 3) b
3. Rising 20ma (r20ma)
4. Rising 40ma (r40ma) 3
5. Even space in between
*All Pullbacks are Buyable

a 2
*Breakouts are also Buyable
Even Space
1
r20ma
r40ma
57
The Pristine Up Trend Defined
d
Pristine Uptrend Criteria
1. Higher Highs (a –d) c
2. Higher Lows (1 – 4)
b
*All Pullbacks are Buyable
4
*Breakouts are also Buyable
a r20ma
3
r40ma
2
= Pristine Trading Opportunities

1
58
Weekly Up Trend
Pristine Up Trend Criteria D

1) Higher Highs (A - D) C
2) Higher Lows (1 -4)
3) Rising 20ma (r20ma)
5) Even Space Between
B
4
A
*All Pullbacks Are Buyable
3
Even Space
r20ma
2
1 r40ma
59
The Pristine Down Trend Defined
Up Trend Down Trend Sideways Trend
Defined by 1) lower highs, 2) lower lows, 3) a declining 20-period

moving average (d20ma), 4) a declining 40-period moving
average (d40ma) and 5) a relatively even space in between the
two dMAs. * Lower highs and lows refers to ‘pivots’ being lower
*The Down Trend is also known as Stage 4.
Trading Tip: Once the Pristine Down
Trend criteria are met, the PTT’s sole
objective is to short every single rally
and breakdown in the Stage 4 Down
Trend. Not one should ever escape
the PTT.
= Pristine Sell Opportunity

Trading Tip: Scan your Trading Universe and make a
list of stocks currently trending in a powerful Stage 4.
60
Stage 3
a d40ma
b
d20ma
c Even Space
Down Trend Criteria d

1. Lower Highs (a – e)
2. Lower Lows (1 – 5) 1 e
3. Declining 20ma (d20ma)
5. Even space in between 2
3
*All Rallies are Shortable Stage 4 4
*All Breakdowns are Shortable
61
Stage 3
d40ma
a
d20ma
b
c Even Space
Down Trend Criteria 1
1. Lower Highs (a – e) d
2. Lower Lows (1 – 5) 2 e
4. Declining 40ma (d40ma) 3
Stage 4 4
*All Rallies are Shortable
*All Breakdowns are Shortable 5
62
The Sideways Trend Defined
Up Trend | Down Trend Sideways Trend

• Defined by a series of “relatively” equal highs and lows.
The Sideways Trend is also known as Stage 1 & Stage 3.
Trading Tip: The PTTs objective is to

buy the dips and short the rallies in a
Sideways Trend.
= Pristine Buy Opportunity
= Pristine Sell Opportunity
Note: In a Stage 1, the PTT is more prone to buy the dips than sell the rallies. In
a Stage 3, the PTT is more prone to sell the rallies than buy the dips. Why?
63
Sideways Trend
A Sideways Trend is defined by a series of relatively

equal highs and relatively equal lows.
Stage 2
Note: Every Sideways Trend eventually breaks out or
breaks down. In this case, a breakout is what
materialized, resulting in a move to a Stage 2 Up Trend.
Notice the Oscillator below.

= Pristine Trading Opportunity
Do we need it?
64
Sideways Trend
Equal Highs Stage 3
Equal Lows
Stage 2
Stage 4
Equal Highs
A Sideways Trend is defined by a series

of relatively equal highs and relatively
equal lows.
Note: Every Sideways Trend eventually

breaks out/down A Sideways Trend is
defined by a series of relatively equal
Equal Lows highs and relatively equal lows.
65
Sideways Trend
A Sideways Trend is defined by a series of

relatively equal highs and relatively equal lows.
= Pristine Trading Opportunity
66
Combining Master Trader Keys I & II
• There is only one Cycle Stage 3
Sideways Trend
or movement a stock Buy & Short
can make. We call this
the Unit or Atom. Guerrilla Mode
Swing/Core Mode
• This Cycle is largely
comprised of 4 stages
(1, 2, 3 & 4).
• These 4 stages are
Stage 2 Stage 4
made up of 3 primary Uptrend Downtrend
trends (Up, Down & Buy Dips & Short Rallies
B/Os & B/Ds
Sideways).
• Each trend should have
its own matching
trading actions. Swing/Core Mode
• The PTT uses Pristine

ESP™ Trend Scans to Stage 1 Stage 1
Sideways Trend Sideways Trend
find the powerful Stage Buy & Short
Buy & Short
2 and Stage 4 trends. 67
Combining Master Trader Keys I & II
Stage 3
Guerrilla Mode
Stage 2 Swing/Core Mode
Stage 4
Guerrilla Mode
Stage 1
Stage 1
Swing/Core Mode
68
Pristine Master Buy and Sell Setups
www.pristine.com
69
Anatomy of an Up trend – Stage 2
Trading Note: m2 represents the periods during m3
which the minor trends in a Stage 2 match the
major or macro trend (no conflict). During the
m1s, m3s and m4s, there is no match with the
Major Stage 2. Buy Action for the PTT takes place
the moment there is a match (no conflict). m2
m3
m4
m2 Match
m3
m1
m4
Match
m2
m1
Tip: TTs and BTs are examples of m1s and m3s
Match
m = Minor
Macro Bullish Stage 2
70
Important Points Pristine Trading Tip:

• Note that the macro up trend is made • Pristine Trained Trader (PTTs) buy when
up of a series of repetitive micro stock the Micro Trend is in sync with the
cycles (atoms). Macro Trend. Herein lies one of the
master keys to trading accuracy on the
• Pristine Trained Traders (PTTs) look to buy side. The question of “when” to buy
buy every dip/pullback and breakout in is now answered. A buy is triggered
macro Stage 2 up trends. The question each time there is a stage to stage
is not “if” to buy, but “when” to buy the “MATCH.” Don’t Miss This Concept. It Is
dip/pullback or breakout.
Priceless!
• While the higher peaks and troughs 3

signify that the stock is in a “Macro” Micro Trends 2
Stage 2, note that the macro up trend 4
itself has micro stage 1s, 2s, 3s & 4s. 3 2
4 1
2
1
Macro Stage 2 Up Trend 71
• The timing of the ‘buy’ develops as follows:
1) Macro Stage 2 with a micro Stage 3 (Wait!)

3) Macro Stage 2 with a micro Stage 1 (Get Ready!)
4) Macro Stage 2 with a micro Stage 2 (STRIKE!)
Micro Stages
3 2
4 Note: An example of a micro
3 2 stage 3 could be a TT and an
Strike example of a micro stage 1
4 1 could be a BT.
2 Strike
1
Macro Stage 2
72
The Pristine Buy Set-up (PBS) 20-pts
4
20 points
2
PBS
1
• The Pristine Buy Set-up (PBS) is made up of only one key

criterion.
• The PBS is the key to capturing robust 3 to 5-bar trading gains.
• The PTT can often use this one setup alone to trade any market.
• The PBS is scored 20 points in the Pristine Trade Score System.
• The PBS can be found and traded in all times frames.
73
Pristine Buy Set-up (PBS) 20-pts
The Setup The Action
• Main Criteria: 3 or more consecutive lower highs or 3 or more red bars.

Tip: Having both makes the set-up more potent.
• Optional Item: 3 or more consecutive lower lows

3
LH
4
3 or more red bars
LH with lower highs.
LH = Lower High 2 LH
LL = Lower Low
LL
LL
74
Pristine Buy Setup’s 4 Action Steps

1. Buy when the stock trades above the prior bar’s high, or
Buy when the stock trades above its first 30-minute high (Only for Swing Entries).
Note: Only use the 30-minute entry method if the prior bar’s high is too far away (Swing Entries).
2. Place a stop below the entry bar’s low, or the prior bar’s low, whichever is lower.
3. Establish the minimum target at or slightly above the prior pivot high.
4. After two bars (in your direction) are complete, place a trailing stop under each prior low until a)
the price objective is met, b) a reversal bar has developed or c) a gap up has occurred (Swing
Trades).
4 = Trade Management Objective 3
Buy $0.01 above the 1

prior bar’s high.
Stop loss slightly

below the current or 2
prior bar’s low.
75
This dated chart shows a
near perfect Pristine Buy Buy Area
Set-up (PBS). The Green
Arrows point to the buy bars.
The Red Line signifies where
the PTT places his stop.
Pristine Buy Set-up (PBS)

1) 3 consecutive lower highs.
2) 3 consecutive dark bars Stop Loss
3) 3 consecutive lower lows
Pristine Breakout (PBO)

The second buy point is
based on Pristine Breakout
Principles, which we cover in
more detail later in the Stop Loss
course.
76
Pristine Buy Set-up (PBS) 20-pts
PBS Action Steps
Target Area
1. Buy above the prior bar’s high
2. Place stop below the prior bar’s low or
2a. Place stop below the current bar’s low
B
3. Set minimum target at the prior pivot high
4. Manage in between the stop and target S
PBS Criteria
3 or more lower highs or…
3 or more red bars
3 or more lower lows (Optional)
77
Anatomy of a Downtrend – Stage 4
Trading Note: m4 represents the periods during

which the minor trends in a Stage 4 match the
major or macro trend (no conflict). During the
m1s, m2s and m3s, there is no match with the
Match
Macro Stage 4. Sell Action for the PTT takes place
m4 m3 the moment there is a match (no conflict).
m2
Match
m1 m4
m3
m2
Match
Tip: TTs and BTs are examples of m1s and m3s.

m1 m4
m = Minor
m1
Macro Bearish Stage 4 78

The Anatomy of a Downtrend – Stage 4
Important Points Pristine Trading Tip:

• Pristine Trained Traders (PTTs) short
• Note that the macro down trend is when the Micro Trend is in sync with
made up of a series of repetitive micro the Macro Trend. Herein lies one of the
stock cycles (Atoms). master keys to trading accuracy on the
sell side. The question of “when” to
• Pristine Trained Traders (PTTs) look to sell/short is now answered. A short is
can sell short every rally and breakdown triggered each time there is a stage to
in macro Stage 4 down trends. The stage “MATCH.” Don’t Miss This
question is not “if” to short, but “when”
to short the rally (breakdown). Concept. It Is Priceless!
4 3
• While the lower highs and lows signify Micro Trends
that the stock is in a “Macro” Stage 4, 2
note that the macro down trend itself 4
3
has micro stage 1s, 2s, 3s & 4s. 2
1
4
1
Macro Stage 4 Down Trend 79

Anatomy of a Downtrend – Stage 4
• The timing of the short setup develops as follows:

3) Macro Stage 4 with a micro Stage 3 (Get Ready!)
4) Macro Stage 4 with a micro Stage 4 (STRIKE!)
Micro Stages
4 3
Strike Note: An example of a micro
2 Stage 3 could be a TT and an
4 3 example of a micro Stage 1
2 Strike could be a BT.
1
4
1
Macro Stage 4
80
The Pristine Sell Set-up (PSS) 20-pts
2
PSS
20 points
4
• The Pristine Sell Set-up (PSS) is made up of only one key criterion.
• The PSS is the key to capturing robust 3 to 5-bar trading gains.
• The PTT can often use this one setup alone to short any market.
• The PSS is scored 20 points in the Pristine Trade Score System.
• The PSS can be found and traded in all times frames.

81
Pristine Sell Set-up (PSS) 20-pts
Main Criteria: 3 or more consecutive higher lows or 3 or more green bars.

Tip: Having both makes the set-up more potent.
Optional Item: 3 or more consecutive higher highs
3
2
HH
HH HL
4
3 or more green bars
HL with higher lows.
HL = Higher Low
HL
HH = Higher High
1
82
Pristine Sell Setup (PSS) 20-pts

1) Short when the stock trades below the prior bar’s low, or
Short when the stock trades below its first 30-minute low (Only for Swing Entries).
Note: Only use the 30-minute entry method if the prior bar’s low is too far away (Swing Entries).
2) Place a stop above the entry bar’s high, or the prior bar’s high, whichever is higher.
Traders can use the entry bar’s high but the trade’s favorable odds are reduced a bit.
3) Establish the minimum target at or slightly below the prior pivot low.
4) After two bars (in your direction) are complete, place a trailing stop above each prior
high until a) the objective is met, b) a reversal bar develops or c) a gap down has occurred
(Swing Trades).
Stop loss slightly
above the current 2
or prior bar’s high.
Short $0.01 below

the prior bar’s low.
1
4 = Trade Management
Objective 3 83
200ma
20ma
PSS Criteria
3 or more higher lows S
3 or more green bars PSS
3 or more higher highs
Entry
Note: The flip to red (-COG)
signifies a Micro Stage 3
PSS Action Steps

1. Short below the prior bar’s low
2. Place stop above the prior bar’s high or
Target
2a. Place stop above the current bar’s high
3. Set minimum target at the prior pivot low Area
4. Manage in between the stop and target
84
PSS Criteria
3 or more higher lows or
3 or more green bars
3 or more higher highs (optional)
Note: Only the first criterion is required
The TT signifies a micro stage 3 Stop
PSS
Entry
PSS Action Steps

1. Short below the prior bar’s low
2. Place stop above the prior bar’s high or Target Area
2a. Place stop above the current bar’s high
3. Set minimum target at the prior pivot low
85
Pristine Trading Combos for Stages 2 & 4
www.pristine.com
86
Pristine Trading Combinations for Stages 2 & 4
Introduction
In this section, we show the trader how to combine the Pristine Buy Set-up
(PBS) and the Pristine Sell Set-up (PSS) with several powerful occurrences
that dramatically increase the trader’s odds of success in stages 2 and 4.
Individually, the Pristine Buy and Sell Set-ups tend to reap profits while
ensuring that the trader plays on the right side of professional market
makers and specialists. However, The Pristine Buy & Sell Setups, used in
conjunction with the following events (amplifiers), will actually help to raise
the level of accuracy of these already accurate patterns, and typically
generate trading profits at a faster and more powerful rate. Trading truly
becomes closer to a science once one knows how to properly identify and
exploit the moments when these powerful trading events occur
simultaneously. Now we are going to delve deeper into the realm of
professionalism, showing how the Pristine Buy & Sell Setups along with
several other indicators and occurrences can reap bigger profits. Keep in
mind that each concept can be applied in all time frames.
87
Bottoming Tail (BT) & Topping Tail (TT) 10-pts
Bottoming Tail (BT) & Topping Tail (TT) Points

A Bottoming Tail (BT) after a 3 to 5 bar decline indicates that the balance of power
has shifted from the sellers back to the buyers.
Example: “Red bar, Red bar, Red bar, Bottoming Tail (BT).”
The PTT looks to buy!
A Topping Tail (TT) after a 3 to 5 bar rally indicates that the balance of power has
shifted from the buyers back to the sellers.
Example: “Green bar, Green bar, Green bar, Topping Tail (TT).”
The PTT looks to sell!
TT
PBS
30-pts
PSS
30-pts
BT
88
Pristine Buy Setup (PBS) with a BT - 30pts
The PBS combined with the formation of a Bottoming Tail (BT) is our first trading combination, and it
presents a powerful buy opportunity that is more reliable than a regular PBS without a BT.
Pristine Buy Setup (PBS) Bottoming Tail (BT) Result
A more reliable
+ = buy
opportunity
BT
20 pts 10 pts 30 pts
Pristine Trading Combo 1

89
Bottoming Tail & Topping Tail (TT) - 10pts
The 1st Criterion: A Pristine Buy/Sell Setup and

The 2nd Criterion: A Bottoming/Topping Tail 30 pts
Topping Tail
(TT)
PSS
PBS
Bottoming Tail
(BT)
30 pts
90
The PBS & Bottoming Tail (BT)

Buy above the high of the BT bar and follow the normal
Pristine stop, trade management and sell rules.
Target Area
30 pts
PBS
Buy $0.01 above

the prior high.
BT
Stop loss slightly
below the entry
bar’s low.
*Reverse for the Pristine Sell Set-up (PSS) with a TT
91
PBS w/ BT (30-pts)
PBS w/ BT Action Steps
1. Buy above the BT’s high Target Area
2a. Place stop below the BT’s low
3. Set minimum target at the prior pivot high B
S
PBS w/ BT Criteria BT
3 or more lower highs or
3 or more red bars
3 or more lower lows
(Optional)
Bottoming Tail (BT)
Note: The BT signifies a Micro Stage 1
PBS = 20-pts
BT = 10-pts
Total = 30-pts
92
Bottoming Tails (BT)
PBS w/ BT
BT
20ma
BT
BT
BT
+Vol
93
Bottoming Tail (BT) 10 pts
Bottoming Tails (BT) are signs that major

institutionalized buying has taken place. When BTs
form after a stock has already declined several bars,
the odds are pretty high that a bounce of some kind
is very close at hand.
TT
MS
BT
94
Changing of the Guard (COG) 10-pts
Pristine’s “Changing of the Guard” (COG), our second trading combination, is

the name we have given to a multi-bar pattern that signifies that a clear shift
in the balance of power has just occurred. There are two types of COGs.
The Bullish COG (+COG) signifies that a change in control from the sellers to
the buyers has just occurred.
The Bearish COG (-COG) signifies that a change in control from the buyers to
the sellers has just occurred.
Before we show the potency of this price pattern, when it is combined with
the Pristine Buy and Sell Set-ups, it is necessary for us to explain the powerful
reasoning behind it.
95
Pristine Tip: Each time a stock closes above its opening price, the
buyers are considered to have won the particular period (bar) at hand.
Each time a stock closes below its opening price, the sellers are regarded
as the winners of that period (bar). The following formulas will
demonstrate this clearly.
Close > Open = Buyers/Bulls Won the Period (bar)

Close < Open = Sellers/Bears Won the Period (bar)
Close Open
Open Close
Bulls/Buyers Won Bears/Sellers Won
96
Important COG Points:

A Bullish COG (+COG) occurs when 3 to 5 consecutive red bars
are suddenly followed by a green bar.
Example: “Red bar, Red bar, Red bar, GREEN bar.”
PBS
30-pts
+COG
A Bearish COG (-COG) occurs when 3 to 5 consecutive green bars are suddenly
followed by a red bar.
Example: “Green bar, Green bar, Green bar, RED bar.”
PSS -COG
30-pts
97
Pristine Buy Setup (PBS) with a +COG - 30pts
The PBS combined with the formation of a Bullish COG (+COG) is our second trading
combination and presents a powerful buy opportunity that is more reliable than the regular PBS
without a +COG.
Pristine Buy Setup (PBS) Bullish COG Result
Close
A more reliable
+ = buy
opportunity
Open
20 pts 10 pts 30 pts
Reverse for the PSS Pristine Trading Combo 2

98
PBS & PSS with a COG
The 1st Criterion: A Pristine Buy/Sell Setup and

The 2nd Criterion: A Bullish/Bearish COG
Bearish COG
(-COG) w/ TT
PSS
PBS
How many points?

Bullish COG
(+COG )w/ BT
99
The PBS & Bullish Changing of the Guard (+COG)
The Setup The Action*

Buy above the high of the +COG and follow the Pristine
stop, trade management and sell rules.
Target Area
30 pts
PBS
Buy $0.01 above
the +COG
+COG
Stop loss slightly
below the entry or
prior bar’s low.
*Reverse for the Pristine Sell Set-up (PSS) with a –COG

100
PBS w/ +COG (30-pts)
PBS w/ +COG Criteria PBS w/ +COG Action Steps

3 or more lower highs 1. Buy above the +COG’s high
3 or more red bars
+COG 2a. Place stop below the +COG’s low
Note: The +COG signifies a Micro Stage 1 3. Set minimum target at the prior pivot high
Stage 2 B
Stage 4 S
Stage 1
me
Volu
is ing
R
Quiet Volume
101
PBS +COG (30-pts)
Target Area
PBS w/ +COG & BT Action Steps
1. Buy above the +COG’s high B
S
2a. Place stop below the +COG’s low
3. Set minimum target at the prior pivot high
Note: ATS teaches other

options for position
management.
PBS w/ +COG Criteria

3 or more lower highs
3 or more red bars
PBS = 20-pts +COG
+COG = 10-pts Note: The +COG signifies a strong
Total = 30-pts Micro Stage 1
102
Pristine Pop Quiz
20ma
Find & Circle:

40ma
1) Three +COG
PG
2) One PBO
3) All PBS’s
103
Narrow Range Bar/Body – (NRB/NB) 10-pts
• Narrow Range Bars (NRBs) are defined as bars with a smaller than average distance between the
high of the bar and low of the bar.
• Narrow Bodies (NBs) are defined as bars with a smaller than average distance between the open
and close of the bar.
• NRBs and NBs are only significant if and when they appear after several bar moves.
• NRBs and NBs offer one of the clearest possible signs that a reversal is near.
• An NRB or NB after a 3-5 bar drop indicates a rally is potentially close at hand.
• An NRB or NB after a 3-5 bar rally indicates a decline is potentially close at hand.
Normal Narrow Narrow

Range Bars Range Bars Bodies
NRBs (NBs)
NRB = 10-pts Pristine Trading Tip: Reversals (rebounds or declines) after NRBs & NBs tend to
NB = 10-pts be more potent and reliable than reversals from more normal daily bars.
104
Pristine Buy Setup (PBS) & NRB/NB (30pts)
The Pristine Buy Setup (PBS) combined with the formation of a NRB or a NB presents a
near perfect buy opportunity that is far more reliable than the regular PBS without
the amplifier(s).
Pristine Buy Setup NRB/NB Result

(PBS)
Near perfect
+ = buy
opportunity
20-pts 10-pts 30-pts
Pristine Trading Combo 3 105

The PBS & Narrow Range Bar – (NRB)
The 1st Criterion: A Pristine Buy Setup (PBS) and

The 2nd Criterion: A NRB or NB
Version 1 Version 2 Version 1 Version 2

Green NRB Red NRB Green NB Red NB
40-pts 30-pts 40-pts 30-pts
More than one NRB or NB after a PBS is also powerful, and it is acceptable if the NRB or NB occurs on the 3rd bar of the PBS.
106
Pristine Buy Set-up (PBS) & NRB/NB

Buy above the high of the NRB/NB and follow the Pristine
stop, trade management and sell rules.
Target Area
40 pts
PBS
Buy $0.01 above the

prior bar’s high.
Stop loss slightly below the NRB/
current or prior bar’s low. +COG
*Reverse for the Pristine Sell Set-up (PSS) with a NRB 107
Narrow Range Bar (NRB) 10-pts
Target
B
PBS w/ +COG & NRB = 40pts
S
20ma
40ma
108
Narrow Range Bar (NRB) 10pts
200ma
20ma
PSS/TT/-COG/NRB
S
Entry
PSS w/ TT, -COG & NRB = 50 pts*
Minimum Target
*This play is really 90 points, which you will see once we first cover more Pristine Trading
Combos
109
Narrow Range Bars & Narrow Bodies
PBS w/ NRBs and NBs
Target
B
S
Pristine Breakout (PBO)

PBS
110
Narrow Range Bars & Narrow Bodies
TT
Circles = NB or NRB
PG = Pro Gap PG
TT/
-COG
NB NB
NB
NB PBS
BT +COG
NRB
Note: the rallies that originate

200ma near the 200ma are particularly robust
NBs
BT
111
Power of Narrow Range Bars
m3
m3
NBs
m3
TT m4
m2 m4 m2
m4
m2
BT
m1
PG NBs
m1
m1
tage2
NBs
cr o S m = Micro
m1 Ma PG = Pro Gap
112
Above Average Volume (+Vol) 10-pts
• Volume is one of the most valuable keys to predicting price reversals.
• Mastering the art of reading price/volume relationships will allow you to pick
tops and bottoms in stocks with above average accuracy.
• The truly astute trader can trade successfully by relying exclusively on price
and volume.
• There are three types of Volume:
• Novice typically ends the current move.
• Pro typically ignites a brand new move.
• Continuation which typically leads to the continuation of the most recent
move.
Pristine’s #1 Volume Rule

Above average volume, “after” a strong up or down move,
indicates that a near-term price reversal is at hand.
113
PBS/PSS w/ +Vol (Trading Combo 4)
NRB/
-COG
PBS PSS
NRB/ What is needed to make

+COG these plays 60-pts?
+Vol
What kind of Volume

is this?
50-pts 50-pts
Important Points:
By now traders should know both the PBS and PSS intimately. They will not be repeated
from this point onward. Refer to earlier sections for the details.
Note: the above examples really combine four concepts: the PBS/PSS, the NRB,
COG and the Above Average Volume (+Vol). A very powerful combination.
114
Novice Buy Volume
Pristine Tip:
The above scenarios become incredibly potent reversals if they occur at or near
potential turning areas, such as downward trendlines, major and/or minor price
resistance, or declining moving averages. If any one of the above advances is merely a
first pullback after a sharp breakdown or a counter rally in a strong downtrend, it will
possess a more compelling reason to decline.
Note: The key to trading accuracy is finding points at which numerous concepts converge.
115
Novice Sell Volume
Pristine Tip:
potential turning areas, such as upward trendlines, major and/or minor price support, or
rising moving averages. Remember, Novice Volume ends the current move. The volume
can come on the last bar of the decline or on the bar or two before the last bar.
116
Pro Volume
Pristine Tip:
potential turning areas, such as upward or trendlines, major and/or minor price support
or resistance, or rising/declining moving averages. Remember, Pro Volume ignites a
brand new move or direction in a stock.
117
Pro & Continuation Volume Examples
These two scenarios, A & B, show

A volume which ignites a new move
or trend. As you now know, certain
types of volume end current moves
(novice). Other types of volume
ignite a brand new move (pro), and
Contin yet another continues the most
uation
Volum
e recent move. The Pristine Trained
Trader needs to know how to
determine the difference between
these three types.
B
Shows Support
Shows Resistance
Normal Volume Tip: Continuation volume typically occurs

during pauses. See ex. A.
118
Above Average Volume (+Vol)
A pick up in volume “after” a multi-bar

decline or rally will tend to end the
current move, if only temporarily.
Stage 2
An increase in volume on a Pristine

Breakout (PBO) confirms the increase
in demand during the break.
PBO
Stage 4
CBS
Stage 1
+Vol +Vol
119
A pick up in volume “after” a multi-day decline or rally

will tend to end the current move, if only temporarily.
Pro Gap
This volume climax indicates that

most of the sellers have already rid
themselves of the stock.
120
PSS
PBS
Notice how the +Vol halts the decline in short order.

Can you name this Pristine Buy Opportunity?
If not, you soon will be able to.
+Vol +Vol
121
A pick up in volume “after” a multi-bar decline or rally

will tend to end the current move, if only temporarily.
Stage 2
Stage 4

most of the sellers have already rid
themselves of the stock. Stage 1 The decline is over,
as the +Vol indicated
+Vol
+Vol
122
TT This move is over!

most of the buyers have already
committed to the stock. In other
words, the buyers already bought.
A pick up in volume “after” a

multi-bar rally will tend to end the
current move, if only temporarily.
+Vol
123
Minor Price Support (mS) & Resistance (mR)
“Major” price support and resistance, as we will review shortly, exists when there
are two or more reference points (prior lows/highs) in the context of a sideways price
pattern. In this case, Low revisits low or high revisits high.
“Minor” Price Support (mS) and Resistance (mR) exists when a low revisits a prior
high (mS) and a high revisits a prior low (mR) respectively. This concept of minor price
support and resistance can offer some important entry clues to the Pristine Trained
Trader. It also serves as the basis for increased trading accuracy.
Pristine Tip:
Minor Support (mS) & Resistance (mR) areas offer the trader excellent entry points.
Learning to identify them will help the PTT anticipate when pullbacks in up trends and
rallies in downtrends have good odds of halting.
124
Minor Price Support (mS) 10-pts
Minor Support (mS):

Is a price level or area that lies just above the prior high (peak) of a steady up trend.
The basis for this support lies in the fact that resistance, once broken to the upside,
often becomes support. Each prior high in an up trend is considered to be an area of
minor resistance. Once the stock breaks above its prior high, that peak will often serve
as minor support on dips, just as a ceiling once broken through to the upside becomes
the floor.
Prior Resistance turns into Support
125
Minor Price Resistance (mR) 10-pts
Minor Resistance (mR):
Is a price level or area that lies just below the prior low (bottom) of a steady
downtrend. The basis for this resistance lies in the fact that support, once broken to the
downside, often becomes resistance. Each prior low in a downtrend is considered to be
minor support. Once the stock breaks below its prior low, that trough will often serve
as minor resistance on rallies, just as a floor, once broken to the downside, becomes
the ceiling.
Prior Support turns into Resistance
126
Minor Price Support (mS) & Resistance (mR)
The Pristine Buy Setup The Pristine Sell Setup

& Minor Price Support & Minor Price Resistance
3 PSS at Minor
Resistance
Minor
Support
2
3
4
2
PBS at Minor
Minor
Support Resistance
Trading Combo 5
127
Minor Price Support (mS) 10-pts
Note: The prior high in an up trend

becomes mS once the high is exceeded
Minor Support (mS) PBS
Minor Support (mS)
PBO
PBS & Retest
+Vol
128
Minor Support (mS) 10-pts
PBO
Note: The prior high in an up trend 200ma
becomes mS once the high is exceeded,
mS Area Stop
even if and when bases form.
r20ma
mS Area PBS
3:00 ET
129
Minor Resistance (mR) 10-pts
Prior Support Area is now mR

PSS
Note: The prior support area in this

breakdown (the base) becomes mR
once the low is penetrated.
130
Minor Price Resistance (mR)
PSS/TT/-COG/NRB/mR = 60-pts
20ma
Minor Price Resistance (mR)
Pro +Vol
Novice +Vol
131
40% to 60% Retracement (40/60) 10-pts
Retracement Levels:
The concept of retracements is another important key that helps unlock the door
to predicting where price movements are likely to end. It also serves as an excellent
way to pick low risk entry points. Retracements allow the PTT to know where price
turns might occur. They also serve as a way to measure just how strong the
preceding move was and just how strong the next move is likely to be. Most
importantly, retracements keep the trader’s expectations in check. They prevent the
trader from projecting his hopes and fears into his expectations of the next move. In
other words, retracements help keep the trader objective.
The Halfway (50%) Mark:

While there are numerous retracement levels that have gained mass popularity
over the years, we have our traders focus primarily on the 50% retracement level,
which is by far the most prevalent of them all. Because it is dangerous to demand or
require the market be too precise, we focus on the range or zone that covers the
40% to 60% area, rather than the pinpoint 50% spot. This is a “location” concept and
provides the basis for trading combination number six (6).
Trading Combo 6
132
Bullish 40%-60% Retracement (+40/60) 10-pts
Bullish 40%-60% Retracement (+40/60)

In its most basic form, a bullish retracement is a downward price move in the exact
opposite direction of the most recent up move. For example, if a stock advances $4,
then pulls back by $2, it has experienced a 50% retracement. If the stock were to pull
back the entire $4, it is said to have experienced a 100% retracement, which potentially
sets up what is called a Double Bottom (2b).
Target
$40
Pristine Tip:
$4 Any rebound from the
+40/60 range is to be
Target considered more potent
$38 50%
than one from another
percent level.
40/60 Area
$36 Trading Combo 6

2b 100%
133
Bearish 40%-60% Retracement (-40/60) 10-pts
Bearish 40%-60% Retracement (-40/60)

In its most basic form, a bearish retracement is an upward price move in the exact
opposite direction of the most recent down move. For example, if a stock declines $4,
then rallies back by $2, it has experienced a 50% retracement. If the stock were to rally
back the entire $4, it is said to have experienced a 100% retracement, which potentially
sets up what is called a Double Top (2t).
2t 100%
$40
Pristine Tip:
40/60 Area Any decline from the
-40/60 range is to be
considered more
$38 50% powerful than one from
Target
another percent level.
$4
$36 Trading Combo 6

Target
134
The 40/60 Retracement (40/60) 10-pts
Pristine Tip: On many occasions, the 40/60%

retracement level will coincide with minor support
(mS). If and when this happens, the potential mS
potency and reliability of the play rise. The same is
true in reverse for stocks in a downtrend.
mS 40/60
mS 40/60
r40ma
40/60 r20ma
135
The 40/60 Retracement (40/60)
Sell Area
Pristine Tip: On many occasions, the 40/60%
retracement level will coincide with minor support
(mS). If and when this happens, the potential 40/60
potency and reliability of the play rises. The mS
reverse is true for stocks in a downtrend.
r20ma
r40ma
136
The Mighty Moving Average (10-pts)
The Moving Average is the best Trend Following tool in existence
There are five dominant moving averages (MA):

1. 10-period simple MA > This is a short-term MA.
2. 20-period simple MA > This is a short- to intermediate-term MA (major).
3. 40-period simple MA > This is an intermediate MA (major).
4. 100-period simple MA > This is an intermediate- to long-term MA.
5. 200-period simple MA > This is a long-term MA.
The short-term trader will predominately use the 20 & 40 MAs for monthly, weekly
and daily time frames. The 20 and 200 MAs are used in combination for all micro time
frames. We call the 20, 40 & 200 MAs the “major” MAs.
137
The Mighty Moving Average (10-pts)
Key Moving Average (MA) Concepts

1. Rising “major” MAs represent positive market action or strength.
2. Falling “major” MAs represent negative market action or weakness.
3. The sharper the slopes of the “major” MAs, the stronger/weaker the trend.
4. As long as a stock remains above its “major” MAs (Except Climactic), its action
is bullish.
5. During a strong Stage 2, retracements tend to halt near their rising MAs
(ex. 20,40).
6. During a strong Stage 4, rallies tend to halt at or near their declining MAs
(ex. 20,40).
7. Following penetrations of MAs, pullbacks to the broken MA are very likely.
8. Moving Averages are superior tools In stages 2 and 4.
9. In Stages 1 and 3, their importance is greatly minimized.
*The 20ma is the most dominant MA and is used by the PTT on all time frames.
138
The PBS & the Rising 20MA (r20ma)
PBS/+COG/BT/+Vol/mS/40-60/r20ma = 80 pts
• The PBS combined with a “bullish”
(rising) MA is one of the most powerful
Pristine Trading combinations in
existence. In our view, there’s no other
“combo” more accurate and reliable.
Learn it!
• This powerful buy “combo” represents

the core of the Pristine Trained Trader’s
focus for longs.
• Traders who spend the majority of their

time mastering this one tactic will
dramatically increase their odds of
becoming a master trader. This is THE r20ma
one!
• At times, when the trend is extremely

strong, the 10ma will be the one to
focus on, but this state usually does not
last long. Trading Combo 7
139
The Mighty r20ma
Uptrend Criteria: Note: how powerful the r20ma proves to be.

1. Higher Highs
2. Higher Lows
mS
All Pullbacks are Buyable

Breakouts are also Buyable
r20ma
r40ma
140
Pristine Buy Set-up (PBS) @ r20ma
Target Area
Play Analysis:
PBS (20 pts)
+COG (10 pts) PBO
r20ma (10 pts)
r20ma
40-pt Play
r40ma
141
Weekly 20ma Play
40ma
20ma 1st indication of a trend change.
ATS delves deeply into pivots
for trend analysis
Stage 4
MR
Stage 1 PBS
142
15-min PBS @ r20ma
PBS/BT/mS/40-60/r20ma/RT = 70-pts Stage 2
Target Area
Buy
mS Area
Stop
Stage 4
200ma
Stage 1
143
2-min PBS @ r20ma
PBS/NRB/mS/40-60/20ma/RT = 70-pts
Sell Area
Action Steps:
Buy above prior bar’s high
Place stop below prior low Sell Area
Sell based on:
- Prior High mS Area
-Trailing stop (after 2 bars).
r20ma
144
Rating The Quality of a PBS
4 Bars, Supply IS increasing, Caution!
➢ Each new bar’s open is in
the area of the prior bar’s
close. Strength,
Buy PBS
➢ They do not overlap or gap
into the prior bar.
PBS at Minor Support
145
The PSS & the Declining 20ma (d20ma)
• The PSS combined with a “bearish” PSS/-COG/TT/+Vol/mR/40-60/d20ma = 80pts
(declining) MA is one of the most
powerful Pristine Trading Combinations
in existence. In our view, there’s no other
“combo” more accurate and reliable. d20ma
Learn it!
• This powerful sell “combo” represents

the core of the Pristine Trained Trader’s
focus for shorts.
• Traders who spend the majority of their

time mastering this one tactic will
dramatically increase their odds of
becoming a master trader. This is THE
one!
• At times, when the trend is extremely

strong, the d10ma will be the one to
focus on, but this state usually does not
last long.
Trading Combo 7
146
d20ma Resistance
d40ma
mR d20ma
Until the d20ma begins to flatten out a bit, it will be

a dominant area of resistance when sloping down.
147
Micro PSS @ d20ma
200ma
20ma
Stop
Scoring
PSS (20 pts.) PSS
mR Area
TT (10 pts.) Entry
NRB (10 pts.)
-COG (10 pts.)
mR (10 pts.)
= 90 Point Play
40/60 (10 pts.)
d20ma (10 pts.) Target Area
RT (10 pts.)
148
15-Minute PBS @ r20ma
20ma
mS
Score the circled PBS Play
1. PBS 20 pts
2. ________ _______
3. ________ _______ 200ma
4. ________ _______
5. ________ _______
6. ________ _______
7. 12:00 RT 10 pts._
Total Score: _______
149
Pristine Trading Quiz
Rate This Play

PBS (20 pts)
____ ______
____ ______
____ ______
____ ______
Pop Quiz
What stage is
PBS
the stock in?
What is the likely

next direction?
Find and circle

another PBS
150
20ma & 200ma Intra-day Power
A famous Chinese proverb says, “a picture is worth a

1000 words.” This one had the potential to be worth a
few $1000 for those who knew how to read the Pristine
Trading concepts that appeared so clearly.
The 200ma and the 20ma in this chart show why they
command huge respect in all time frames.
20ma
200ma
151
Pristine’s Buy and Sell Zones
Below you will find a very valuable trading technique that Pristine developed more than 10 years ago. This one
trading concept is so potent that it should earn an immediate and permanent place in your trading arsenal. It
was discovered on the heels of many personal losses, but fortunately for those learning the Pristine Method® of
Trading today, it need not be associated with such negative experiences. We hope it proves as profitable for you
as it has been to us.
Introduction:
While the 20ma is undeniably one of the most potent moving averages in existence,
there are still many occasions on which stocks will break it. We discovered that when
the mighty 20ma is violated, a rebound of even bigger proportions can and often does
materialize. This paradoxical discovery is what lead us to the development of:
The Pristine Buy Zone™ (PBZ)

and
The Pristine Sell Zone™ (PSZ)

Let’s study these concepts now!
Trading Combo 8
152
Pristine Buy Zone™ (PBZ) 10-pts
The Pristine Buy Zone™ (PBZ)
The area between a rising 20MA and a rising

20MA
40MA is what we call the PBZ.
40MA
If a stock is in a very strong uptrend, meeting the requirements of a solid Stage 2, it is a

bullish buy if and when it pulls back toward the 20ma. But this Pristine Trading Concept
also dictates that it is even a more powerful buy if the pullback slips into the Pristine Buy
Zone™. We have found that the rallies that ensue from the PBZ are not only more
powerful than those that rise off the r20MA, but they occur faster.
153
Pristine Sell Zone™ (PSZ) 10-pts
The Pristine Sell Zone™ (PSZ)
The area between a declining 20MA and

a declining 40MA is what we call the PSZ.
40MA
20MA
If a stock is in a very strong downtrend, meeting the requirements of a solid Stage 4, it is

an excellent short if and when it rallies back toward the d20ma. But this Pristine Trading
Concept also dictates that it is even a more powerful short if the rally back happens to
slip into the Pristine Sell Zone™. We have found that the declines that ensue from the
PSZ are not only more powerful than those that decline off the d20MA, but they occur
faster.
154
The PBS in the PBZ
• The PBZ acts as a very powerful

“cushion” when a stock is in the midst of
a strong Stage 2. 20MA
• The snap back that often occurs is

40MA
typically very sharp because the stock at
that point has become deeply oversold.
• The Circles show the pivot in the Pristine

Buy Zone™ (PBZ).
Important Points:
• Once again, the above “buy” scenario shows a number of concepts, all converging to signal a
terrific long opportunity: PBS, BT, NB, +Vol, mS, 40/60, +COG and the PBZ™.
• We have found that the rally which ensues from the PBZ may falter in the area of the prior high.
This is where the trader may want to think about taking profits. The use of the 40/60 Sell Rule
also comes in handy with this concept.
155
The PSS in the PSZ
• The PSZ acts as a very powerful
“ceiling” when a stock is in the midst of
a strong Stage 4.
• The snap back to the downside that

often occurs is typically very sharp
because the stock has become very 20MA
overbought.
• The Circles show the pivot in the 40MA

Pristine Sell Zone™ (PSZ).
Important Points:
• Once again, the above “sell” scenario shows a number of concepts, all converging to
signal a terrific short opportunity: PSS, TT, -COG, NB, +Vol, mR, 40/60, and the PSZ™.
• We have found that the decline which ensues from the PSZ may falter in the area of
the prior low. This is where the trader may want to consider taking profits. The use of
the 40/60 Sell Rule also comes in handy with this concept.
156
Pristine Buy Zone™ (PBZ)
PBS/+COG/NBs/+Vol/PBZ/EOM = 70-pts
20ma
40ma
+Vol
+Vol
157
Weekly Pristine Buy Zone Play (PBZ)
Target Area
mS
PBS in the PBZ
158
Pristine Buy Zone Play (PBZ)
Score the circled PBZ Play

1. PBS____ 20 pts.__
2. ________ _______
3. ________ _______
4. ________ _______
5. PBZ____ 10 pts._
Total Score: _______

r20ma
PBS r40ma
PBO
159
Pristine Sell Set-up (PSS) Quiz
PSS
List the trade elements

1. PSS + (20 pts)
2. ___ +
3. ___ +
4. ___ +
5. ___ +
6. ___ +
7. ___
160
Pristine Trading Combos for Stages 1 & 3
www.pristine.com
161
Introduction to Trading Stages 1 & 3
In this section, we show the trader how to combine the Pristine Buy Set-up (PBS), the
Pristine Sell Set-up (PSS), the Climactic Buy Set-ups (CBS) and the Climactic Sell Set-up
with several powerful occurrences that dramatically increase the trader’s odds of success
in Stages 1 and 3. Individually, these Key Pristine Setups tend to reap profits while
ensuring that the trader plays on the right side of professional market makers and
specialists. However, the Pristine Buy & Sell Setups, along with the Climactic Buy and
Sell Set-ups, used in conjunction with the following events will actually help increase the
accuracy of these already accurate patterns. Trading truly becomes closer to a science
once one knows how to properly identify and exploit the moments when these powerful
trading events occur simultaneously in Stages 1 & 3. Once again, we are going to delve
deeper into the realm of professionalism, showing how our tested trading patterns along
with several other signals or occurrences can reap sizeable profits even in the most
neutral market environments. Keep in mind that each trading concept taught in this
section can be applied in all time frames.
162
Major Price Support (MS) & Resistance (MR)
The concept of Major Support (MS) & Resistance (MR) forms the foundation
for numerous highly accurate trading tactics. Its main purpose is to help the
PTT exploit the opportunities that exist in sideways trading patterns. Because
the market spends a good portion of its time trapped in neutral sideways
trading patterns, it is imperative that the PTT know how to adeptly handle
them with the following concept. We have found this concept to be so
powerful that we know traders who earn a very decent living by simply and
exclusively buying stocks at or near support and selling them at or near key
points of resistance. The use of reversal bars, volume and all the other
trading concepts we’ve taught you so far, come in handy with this concept as
well.
Let’s begin our exploration of Major Price Support (MS) and Major Price
Resistance (MR)!
Trading Combo 9
163
Major Price Support (MS) 10-pts
Major Price Support (MS)

Major Price Support (MS) is a price level or area at which demand for a stock
overwhelms the existing supply. In other words, it is an area at which the buying
(which was light) begins to overwhelm the selling. This offers a unique “buying”
opportunity. The key thing to remember is that MS can be defined by the following:
“Current low revisits prior low.” Every low, from which a strong rally ensued, has
contained within it a certain degree of “positive memory.” This is what creates
something close to a self-fulfilling prophesy, which is another way of saying it creates a
very high odds long scenario.
$24 Area
$20 Area
Area of Price Support
Trading Tip: The first and second circles were self-fulfilling buy points due to the
previous low (uncircled) producing a strong rally back to the $24 area. This rally
rewarded traders who will repeat their actions on the next go-around.
164
Major Price Resistance (MR) 10-pts
Major Price Resistance (MR)

Major Price Resistance (MR) is a price level or area at which the supply of a stock
overwhelms the existing demand. In other words, it is an area at which the selling
(which was light) begins to overwhelm the buying. This offers a unique “shorting”
opportunity. The key thing to remember is that MR can be defined by the following:
“Current high revisits prior high.” Every high, from which a strong decline ensued, has
contained within it a certain degree of “negative memory.” This is what creates
something close to a self-fulfilling prophesy, which is another way of saying it creates a
very high odds short scenario.
Area of Price
$24 Area
Resistance
$20 Area
Trading Tip: The first and second circles were self-fulfilling sell points due to the
previous high (un-circled) producing a strong decline back to the $20 area. This
decline hurt traders who will look to get out once they are redeemed.
165
Major Price Support (MS) 10-pts
The PBS & MS Combo
Positive Memory
PBS/+COG/NRB/+Vol/MS = 60-pts
Trading Combo 9
166
Major Price Resistance (MR) 10-pts
The PSS & MR Combo

Negative Memory
PSS/-COG/NRB/+Vol/MR = 60-pts
Trading Combo 9
167
Major Sideways Pattern
The Pristine Trained Trader (PTT) uses the concepts of MS and

MR with the PBS and PSS. Circles show Pristine trading
opportunities. Keep in mind that eventually all sideways trends
will end in a breakout or breakdown.
168
Major Sideways Pattern
Major Resistance Area (MR)
Major Support Area (MS)
Circle = Pristine Trading Opportunities

Name them if you can.
169
The astute Pristine Trained

Trader enters here
This area can be considered Major

Support (MS) despite having only 1
reference point IF:
a) Prior low is a CBS or
b) It happens after a Deep
MS
Retracement and Trend line Break CBS PBS
170
Tip: MS is an area, not a specific price.
Positive Memory
171
Positive Memory caused

by many traders being
Rewarded Traders
handsomely rewarded
always repeat
their actions
172
Major Support – Low Revisits Low
Robust rally creates the reward
Area of Major Support (MS)

Prior Low
173
Trading Tip: Major Support is

never a single price.
Rather it is an area or zone
from which prices rally.
Targets
Buy
BT
Major Support Area
Volume Pick-up
174
1 Major Price Resistance (MR) 2
At top #1, many people who bought got

hurt, and now wait to get their money back.
At top #2, the buyers who held on, get their

money back, and immediately look to sell. Stage 2
Trading Tip: The group of sellers at top #2

Stage 4 dramatically increases, making it a great
opportunity for a potential short play.
BO
Stage 1
Novice Volume
175
The Power of the 2T (MR)
1T Stage 3 2T
Stage 2
The sharp retracement after 1T is

followed by a seemingly bullish
attempt on 2T.
Notice how the PBO at 2T fails

creating the sharp drop.
This is a concept that we discuss Stage 4

in great detail in ATS
176
Major Resistance (MR)
Major Resistance
High Revisits Prior High
Short
1st Target 40/60
2nd Target
177
Major Support (MS) & Resistance (MR)
Major Resistance: Origin of Pain Area of Pain Revisited
MS
178
Pain Revisited = Sell Opportunity
Pain
caused by Area of Pain
sharp Revisited
decline
179
Major Support (MS) & Resistance (MR)
MR & 200ma
200ma
20ma
180
Major Support and Resistance
Area of Prior Pain Major Resistance Short
Major Support
Area of Prior Reward Look to buy a

PBS out of
Major Support
181
Major Support & Resistance
Major Price Resistance
Note: the formation of TTs in the MR

zone and BTs in the MS zone.
Major Price Support
182
The Bullish “Pause” That Refreshes*
It can be confusing at times determining whether a sideways price pattern is a topping
Stage 3, which will eventually evolve into a bearish Stage 4, or just a pause or sideways
consolidation in the context of an ongoing major Stage 2. Often times, a stock will rest
(work off steam) by correcting sideways, not downward. This sideways “pause” is a
healthy occurrence as it helps prepare the stock for another extended run to the upside
(or downside if the trend is down and we are dealing with the “Stage 1 or Pause” issue.
But many novice traders do not know how to differentiate between a healthy “pause”
and an unhealthy Stage 3, especially given the fact that they are both sideways price
patterns.
The PTT buys the PBO here
Tip: The main characteristics of a ‘pause’ are:

1. Narrow thin bases (not wide and whippy)
2. Volume is usually light during base
3. Rising 20ma
At or near point of contact,

r20ma the stock explodes upward!
*Reverse for the Bearish Pause

183
The ‘Pause’ That Refreshes
The Pause VS. The Stage 3

Pauses are narrow
Stage 3s are wide
Pauses have small bars

Stage 3s have big bars PBO r20ma
Pauses have light Vol.
Stage 3s have big Vol. Stop
200ma
Trade Action Steps

1. Buy the PBO
2. Place stop below the base
3. Manage as per Trading Plan
184
The ‘Pause’ Play
Trade Action Steps

1. Buy the PBO
PBO
Note: At or near the point of contact

with the r20ma, the stock breaks out.
185
The Intra-day ‘Pause’
Trade Action Steps Note: At or near the point of contact
1. Buy the PBO with the r20ma, the stock breaks out.
3. Project base upward
PBO Entry
20ma
Stop
Big Volume
186
The Intra-day ‘Pause’
Trade Action Steps Note: At or near the point of contact

1. Buy the PBO with the r20ma, the stock breaks out.
3. Project base upward
PBO Entry
Stop 40ma
Big Volume
20ma
187
The Intra-day Pause
Note: the sideways “drift” towards the r20ma
Tip: The PTT looks to buy the PBO once the

stock nears the r20ma, which is now, and
projects the base upward for the target.
PBO Entry
20ma
Stop
Big Volume
188
The ‘Pause’ That Refreshes
Note: At or near the point of contact

with the d20ma, the stock breaks down. d20ma
r20ma
PBD
Trade Action Steps 1st Target area

1. Short the PBD
2. Place stop above the base
189
The ‘Pause’ Versus Stage 1
200ma
Stop
Look to buy breakout

d20ma
Short
Tip: The last drop moves the stock far away from
the d20ma and the 200ma, which indicates that the
decline is nearly over. The ensuing base may now
yield a buyable breakout, versus another short
opportunity.
Volume Increase
190
The Pause Versus Stage 1
Stage 3
200ma
Wide Distance
d20ma
Stage 4
Trading Tip: Wide moves away from the 20ma lead to

snap backs to the 20ma. When the move back is sideways,
and the 20ma goes flat, a trend reversal is usually at hand.
When the 20ma is far from the 200ma, and goes flat, the
PTT should prepare to buy the breakout.
Stage 1
191
Power Trading Combos
for Transitional Phases A,B,C & D
www.pristine.com
192
Introduction to Transitional Phases
In this section, we show the trader how to combine the Pristine Buy Set-up (PBS), the
Pristine Sell Set-up (PSS), the Climactic Buy Set-up (CBS), The Climactic Sell Set-up (CSS),
the Pristine Breakout (PBO) and the Pristine Breakdown (PBD) Plays with several
powerful occurrences that dramatically increase the trader’s odds of success in
transitional phases A, B, C and D. Individually, these Key Pristine Setups tend to reap
profits, while ensuring that the trader plays on the right side of professional market
makers and specialists. However, the above Pristine Trading Techniques used in
conjunction with the following events will actually help increase the precision of these
already accurate concepts. Trading truly becomes closer to a science once one knows
how to properly identify and exploit the moments when these powerful trading events
occur simultaneously in the four transitional phases. In fact, the highest degree of trading
mastery is attained once the four transitional phases are mastered, as they represent the
most unpredictable and volatile segments of the market’s cycle. In this section we show
how our tested trading patterns along with several other signals or occurrences can reap
sizeable profits even in these turbulent areas and environments. Let us begin!
193
3 Parts of the Pristine Breakout (PBO)
1. The Initial Breakout: The stock breaks above major resistance (MR). This represents
an “excellent” buy point from both a trading and investing point of view.
2. The First Pullback: The stock corrects or pulls back toward the initial breakout point.
This represents the “safest” buy point, in addition to a second chance to jump on board
an accelerating stock.
3. The Secondary Breakout: The stock moves above its prior peak. Buying at this point
should only be done by the intermediate-term trader if trading on end-of-day time frames. It’s
usually too late for the short-term trader, unless the secondary breakout is occurring in an
intra-day time frame like the 2-min., 5-min. or 15-min.
Tip: The PTT typically buys at 1 and 2, but often looks to sell the 3rd event.
3
1
MR Transitional Phase A
MS 2
194
Pristine 1-2-3 Breakout Play (PBO)
1) Buy at the initial PBO point a

a) Sell on initial rise
2) Buy the PBS that forms on 1st pullback
3) Sell above the secondary BO point 1) Initial PBO
Narrow Base
2) 1st Pullback
Volume Decline
195
Pristine 1-2-3 Breakout (PBO)
Action Steps
3) 2nd BO
1. Buy the BO at 1
a. Sell the rally
2. Buy the PBS at 2
3. Sell into the 2nd BO 1) Initial BO
2) 1st Pullback
20ma
200ma
Notice the rising lows in the base before the

PBO
196
Pristine Breakout Play (PBO)
What Two Moves are Next?

What Type of Bar and Volume
Ignited the First Move? 3) Secondary Breakout
1) Initial Breakout
2) First Pullback
20ma
Pro Volume
197
Pristine Pop Quiz
Name & Rate the Plays

1. ___
2. ___ w/ ___, ___, ___
198
3 Parts of the Pristine Breakdown (PBD)
1. The Initial Breakdown: The stock breaks below key support. This represents an
“excellent” entry point (short) from both a short-term trading & investing point of view.
2. The First Pullback: The stock corrects or pulls back (rebounds) toward the initial
breakdown point. This represents the “safest” entry point on the short side, in addition to a
second chance to jump on board a rapidly declining stock.
3. The Secondary Breakdown: The stock declines below its prior low (pivot). Shorting at
this point should only be done by the intermediate-term trader if trading on end-of-day time
frames. It’s usually too late for the short-term trader, unless the secondary breakdown is
occurring in an intra-day time frame like the 2-min., 5-min. or 15-min.
Tip: The PTT typically shorts/sells at 1 and 2, but often looks to cover the 3rd event.
MR
MS 2
Transitional Phase C 3
199
Pristine Breakdown Play (PBD)
20ma
1st Pullback
Initial Breakdown
Pro Secondary Break

+Vol
Novice +Vol
200
Pristine Breakdown Play (PBD)
40ma
20ma
1st Pullback
Initial Breakdown
Secondary Break
201
The Pristine Uptrend Line (UTL)
1. Start by marking the major low (ML) preceding (just below) the highest high (HH).
Note: This is called the “anchor” and will only change when the stock makes a new high.
2. Find and mark the lowest low (LL) of the current upward move (up trend).
Note: This point is moveable to the lows above it if there is price interference.
3. Connect these two points to form your Upward Trendline.
Note: There should be little to no price interference between the two points.
HH
10-pts
ML
Anchor
Trading Combo 10
Upward
Trendline
LL Upward Trend line Points: We need only two

Moveable points to draw a proper upward trend line.
202
The Pristine Uptrend Line (UTL)
HH
HH = Highest High
ML = Major Low
LL = Lowest Low
Note: there is little to no interference with

price between the two points (ML & LL)
ML
Also note: the UTL is always extended into
the future
Step 1: Find ML
Step 2: Find LL
Step 3: Connect
Step 4: Extend
Trading Combo 10 LL
Pro Volume
203
The Pristine Downtrend Line (DTL)
1. Start by marking the major peak (MP) preceding (just above) the lowest low (LL).
Note: This is called the “anchor” and will only change when the stock moves to a new low.
2. Find and mark the highest peak (HP) of the current downward move (downtrend).
Note: This point is moveable to the peaks below it if there is price interference.
3. Connect these two points to form your Downward Trendline.
Note: There should be little to no price interference between the two points.
HP
Moveable
Downward
Trendline
10-pts
MP
Downward Trend line Points: We need only two Anchor
points to draw a proper downward trend line.
Trading Combo 10
LL
204
The Pristine Down Trend Line (DTL)
HP
MP = Major Peak
HP = Highest Peak MP
LL = Lowest Low
Note: there is little to no interference with price

between the two points (MP & HP)
Step 1: Find MP Also note: the DTL is always extended into the
Step 2: Find HP future, and in this case did not need to be
Step 3: Connect changed, as the most recent MP formed right at
Step 4: Extend DTL formed from the previous MP.
LL
Trading Combo 10 Novice Volume
205
Important Trend Line Notes
Notes
Note 1:
The key point to remember is that, unlike traditional trendlines, Pristine Trend Lines are
“evolving” indicators. They are changed with each new high and low.
Note 2:
It’s important to understand that Pristine Trend Lines help the trader to monitor the flow
of funds in a tradable item. For instance, a downward trend line tells the trader that the
flow of money is generally moving out of the stock or the market, and that the best odds
exist on the short side, while the upward trend line says the reverse. In each case, the
trader would primarily focus on the strategy of shorting all rallies toward the downward
trend line and buying all pullbacks to the up trend line.
Note 3:
Lastly, Pristine Trend Lines also provide the trader with the earliest possible indication of
change. This leads into our next discussion, which deals with what action is taken when
Pristine Trend Lines are broken.
206
Two Criteria of an Up Trend Line Break (UTLB)
1. Initial break: This occurs when a stock

breaks below its upward trend line.
Note: This is NOT an action event. It is simply an early warning of a “possible” trend
change.
R&F
1 Action Point
Transitional Phase B
2. Retest & Failure: This occurs when a stock

moves back toward the prior peak and fails.
Note: This IS an aggressive action event that calls for a short.
207
Up Trend Line Break (UTLB)
R&F
3 Criteria of an UTB
1. Initial break of trend line
2. Retest of prior high & failure
3. 2nd Break or retest of prior low 2
Note: The PTT shorts 2: The R&F 1
Pristine Trading Tip:

After a sharp UTLB, an R&F is very likely.
The PTT looks to short the R&F, with a stop
above the high of the R&F and a target at 3.
208
Two Criteria of a Down Trend Line Break (DTLB)
1. Initial break: This occurs when a stock

breaks above its downward trend line.
Note: This is NOT an action event. It is simply an early
warning of a “possible” trend change.
Transitional Phase D
2
R&F
Action Point
2. Retest & Failure: This occurs when a stock

moves back toward the prior low and fails.
Note: This IS an aggressive action event that calls for a buy.
209
Downtrend Line Break (DTLB)
DTLB
HH
1) Initial Break of Line
2) Retest & Failure
Anchor Stage 2 3) Secondary Break
1 3 Tip 1: The initial break

Stage 4
(1) isn’t an action
event
Tip 2: The retest &

Transitional Phase D failure is an excellent
buy opportunity
LL 2 Tip 3: Review-
Aggressive buy remember this setup
Stage 1
also was an example
of a Major Support
PBS
210
Pristine’s Seven Stock Market Events
There are only seven things a stock or a market in general can do. We as traders must
intimately know each one all. Knowing the seven events ensures that a trader will
rarely be thrown or lost by anything the market does. They are building blocks of all
market activity. There are no other actions to understand. These are it! Learn to
exploit them and you will become a Master Trader!
1) Up trend 6) Upward Trend line Break

4) Breakout
2) Downtrend
5) Breakdown 7) Downward Trend line Break
3) Sideways Trend
There are no other market actions to learn!

211
Pristine Trading Combo Summary
There are 10 Pristine Trading Combinations that we’ve reviewed so far. The PTT who
has mastered all 10 will have gone far on his way to becoming a master trader. As we
have always been fond of saying, the PTT really only needs two or three reliable
trading combos to make a living in the markets. We have provided you with 10 so far.
Once you’ve mastered them all, pick your favorite two or three and focus the majority
of your trading around them. Let’s summarize the Pristine Trading Combos now.
Buy Patterns Bull ‘Location’ Add-ons Bull ‘Time’ Add-ons

PBS Bull ‘Event’ Add-ons mS BOM
CBS What BT MS MOM
PBO +COG +40/60 EOM When
NRB/NB With r20ma Where 9 Micro Reversals
+VOL PBZ
UTL
Sell Patterns Bear ‘Location’ Add-ons Bear ‘Time’ Add-ons

PSS Bear ‘Event’ mR BOM
CSS What Add-ons MR MOM
PBD TT -40/60 EOM When
-COG With d20ma Where 9 Micro Reversals
NRB/NB PSZ
+Vol DTL
20-pts Each 10-pts Each 10-pts Each 10-pts Each

212
Pristine Trading Combo Review
There are only three ways to buy and three ways to sell according to the Pristine
Method® of Trading. The PBS, CBS and the PBO represent the three ways to buy, and
the PSS, CSS and the PBD represent the three ways to sell/short. Pristine’s Point
System is primarily used when dealing with the PBS and PSS. While the CBS/CSS and
PBO/PBD plays can be scored, keep in mind that there scores are likely to be low as
many of the add-on events are already incorporated into the basic criteria of the
patterns. For instance, a CBS only exists if a +COG and a BT or NRB/NB already
exists. Without these items, there can be no CBS. The CBS and its sell equivalent is
rated 20-pts as is the PBO and the PBD. Only a few additional events can be added.
Bull Trading Combos Bear Trading Combos Bull ‘Time’ Add-ons Pristine Tip:
1) PBS plus BT 1) PSS plus TT BOM A time event added on to
2) PBS plus +COG 2) PSS plus -COG MOM any one of the 10 trading
3) PBS plus NRB/NB 3) PSS plus NRB/NB EOM combos provides a high
4) PBS plus +Vol 4) PSS plus +Vol 9 Micro Reversals level of potency to the trade.
5) PBS @ mS 5) PSS @ mR
6) PBS @ MS 6) PSS @ MR Bear ‘Time’ Add-ons
7) PBS @ +40/60 7) PSS @ -40/60 BOM
8) PBS @ r20ma 8) PSS @ d20ma MOM
9) PBS @ PBZ 9) PSS @ PSZ EOM
10) PBS @ UTL 10) PSS @ DTL 9 Micro Reversals
Three Ways to Buy: PBS; CBS; PBO Three Ways to Sell: PSS; CSS; PBD
213
Using Pristine’s Climactic Buy &
Sell Set-ups to Buck the Trend
www.pristine.com
214
The Climactic Buy Set-up (CBS)
• The Climactic Buy Set-up (CBS) is made up of

4-5 key criteria. 3
20ma
• The CBS is the key to capturing robust gains
2
against the trend.
4
• The PTT uses this one setup alone to buck the

prevailing trend.
CBS
• The CBS is not scored in the Pristine Trade Score

System.
• The CBS can be found and traded in all times 1

frames.
215
Climactic Buy Set-up (CBS)
1st Criterion: 5 or more consecutive lower highs

or 5 or more red bars
Tip: Having both makes the set-up
more potent.
2nd Criterion: BT, NRB or +COG
5 Red Bars 20ma
3rd Criterion: Far below 20ma (8-10% Daily, 2-3% Intra-day)
w/ LHs
4th Criterion: Volume Increase
5th Criterion: Intra-Day Reversal Time (optional)
Far below 20ma

Climactic Buy Set-up (CBS)
+COG
+Vol
*Reverse for the Climactic Sell Set-up (CSS)
Reversal Time (if intra-day) 10:00 216
CBS’s Four Action Steps

1) Buy when the stock trades above the prior bar’s high, or
Buy when the stock trades above its first 30-minute high (Swing Trades).
Note: Only use the 30-minute entry method if the prior bar’s high is too far away.
2) Place a stop slightly below the entry bar’s low, or the prior bar’s low, whichever is lower. Traders who want to have a
tighter stop can use the entry bar’s low. The only caveat is that the trade’s favorable odds are reduced a bit.
3) Establish the minimum target at the 20ma, prior congestion or use Pristine’s 40/60 Sell Rule.
4) After two bars are complete, place a trailing stop under each prior low until a) the price objective is met (20ma,prior
congestion area or 40/60), b) a gap up has occurred.
20ma 3
Objective
Buy $0.01 above the

prior bar’s high.
1
Note: Volume not shown
2 Stop loss slightly below the 4 = Trade Management

current or prior bar’s low.
217
+Vol & The CBS
PSS
Sell Area
8 lower highs
Four CBS Criteria Met

1. Eight lower highs
Buy
2. Bottoming Tail
3. Volume Increase Stop
4. Far from 20ma (not shown) BT
Big Volume Ends Current Move

Novice Volume
218
+Vol & The CBS
+Vol
20ma
Sell Area
11 Red Bars
1. Eleven Red Bars
2. Bottoming Tail/+COG Buy
3. Volume Increase
4. Far from 20ma (not shown) Stop
BT
Novice Volume
+Vol
219
Daily Climactic Buy Set-up (CBS)
20ma
40ma
Daily Climactic Buy Set-up 1 Action

1. 5 or more lower highs or Red Bars a. Buy above BT Bar
2. BT, NRB, or +COG b. Stop below BT Bar
3. Increase in Volume a c. Target at or near 20ma
4. Far from the 20ma (8% or more) or use the 40/60 Rule
b 2
220
5-min Climactic Buy Set-up
Action
1. Buy above BT
2. Stop below BT
3. Target at or near 20ma
20ma
Target
Percentage Climactic Buy Set-up
Guidelines for 1. 5 or more lower highs
Scanning 2. BT, NRB, or +COG
3. Increase in Volume
Daily 8%+
4. Far from the 20ma (2% or more)
Intra 2%+ 5. Reversal Time
BT
221
2-min Climactic Buy Set-up
Target
20ma
Climactic Buy Criteria

1. 5 or more Red Bars
2. BT, NRB or +COG Action
3. Volume Increase 1. Buy above COG Buy
4. Far from 20ma 2. Stop below COG low
5. Reversal Time 3. Target @ 20ma Stop
222
60-Min Climactic Buy Set-up
Action
20ma 1. Buy above prior high
2. Stop below prior low
3. Target @ 20ma
Target
Climactic Buy Criteria

1. 5 or more Red Bars
2. BT, NRB or +COG
3. Volume Increase
4. Far from 20ma
(2% or more) Buy Here
5. Reversal Time Stop
223
Are the CBS Criteria In Place?
1. Where is your buy?

2. Where is your stop?
3. Where is your target?
224
Climactic Sell Set-up (CSS)
CSS
Four CSS Criteria Met Novice Gap

1. Fifteen Higher Lows
2. Narrow Body (NB) -COG
3. Volume Increase (+Vol)
4. Far from 20ma
Target
+Vol
225
The CSS - The Last Hurrah!
CSS
Possible Failure
Four CSS Criteria Met
Failed PBS
1. Five Green Bars
2. –COG/TT
3. Volume Increase (+Vol)
4. Far from 20ma

PBS 1. Five Lower Highs
2. NRB
3. Volume Increase
4. Far from 20ma
Tip: The 1st PBS after a CSS possesses low odds. The same is true in reverse.
+Vol
226
Climactic Sell Set-up (CSS)
Four CSS Criteria Met CSS

1. Five Green Bars
2. –COG/TT
3. Volume Increase
Stage 4
4. Far from 20ma
Stage 2
PBO
Stage 1 r20ma
227
15-min Climactic Sell Set-up
Stop
Climactic Sell Criteria Action
1. 5 higher lows or green bars 1. Short below prior low
2. TT, NRB/NB or -COG 2. Stop above prior high Short
3. Volume Increase 3. Target @ 20ma
4. Far from 20ma (2% or more)
5. Reversal Time
Target
20ma
228
Pristine’s Master Trading Plan
www.pristine.com
Building a Pristine Trading Plan
What is a Trading Plan?
• A trader who seeks consistent results must have rules

that will determine what, when and how to trade.
• A Pristine Trading Plan includes sections dealing with:
• Goals
• Daily Activities
• Money Management
• Tactics-Strategy
230
Setting Up Your Trading Goals
• Goals must be focused on consistency, not money!

• Establish the style of trading you will pursue.
• Decide the timeframes you’ll focus on.
• Determine the capital you’ll use.
• Batting Average & Sharpe Ratio.
• Will you begin Paper Trading?
• What are your monetary goals?
231
Money Management
• Your Money Management system is highly important!

• Establish Maximum Loss per Account first.
• Establish the Goal for a Winning Period (Day, Month).
• Maximum Loss per Period (Day, Month).
• Maximum Loss per Trade.
• What to do if you reach your goal for the Day/Month?
• Let’s see an example:
232
Money Management
• Account Capital: $100,000.00

• Max. Loss per Account: $10,000 (If met, seek help)
• Goal for a Winning Day: $1,000
• Max. Loss per Day: $600 (Must be smaller than goal)
• Max. Loss/Trade: $200 (Allows for 3 trades)
• The Max. Loss/Trade will tell you how many shares to Buy/Sell
Short:
• Example: QCOM has a PBS w/ a 0.20 Stop. Buy 1,000 shares x 0.20 = $200 (Plus slippage)
• If Profit Target met, close computer (Or setup rules to protect a
large % of the gain to avoid giving it all back).
233
Tactics
• Style of Trading to Pursue: Core, Swing, Intra-day.

• Tactics to Use: PBS, PBO, CBS etc…
• Timeframe to Trade: 5-min, 15- min, Daily etc…
• Define the Tactic(s) in Great Detail.
• Define the Market Conditions you Want to Have.
• Define Your Entry Tactics in Great Detail.
• Define Your Position Management Rules.
• In the next slides you’ll see examples of how to do this:
Pristine Tip: Create a quick reference “trade entry criteria” guide and print out
1-2 pictures of your favorite pattern(s) as a reference when scanning, and keep
this on your desk at all times. 234
Pristine’s Master Buy Trading Plan
Pristine Buy Criteria

1) Stocks must be in a solid up trend, making higher highs and higher lows.
Note: This ensures that the stock is in Stage 2, the most bullish period of its cycle.
2) Stocks must have a smooth rising 20-period moving Average (r20MA).

3) Stocks must have a smooth rising 40-period moving Average (r40MA).
4) The r20ma must be above its r40ma.
5) There must be an nice even space in between the r20ma & r40ma (railroad-
tracks)
ACTION: Now the Pristine Trained Trader (PTT) can use these stocks to buy ALL
trading dips utilizing the Pristine Buy Setup (PBS) and the Pristine Breakout (PBO).
Pristine Buy Setup (PBS)

1) Wait for a Pristine Buy Setup (PBS) to form. Then…
235
Pristine’s Master Buy Trading Plan
Pristine Entry Method(s)

1) Buy $0.01 above the previous bar’s high price, whenever it occurs or…
2) Buy above the highest price established during the first 30-minutes of trading, if
the previous bar’s high is too far away. This entry method should be used for Swing
entries and can often get the PTT into a play early, when the market is strong. But
the odds of the play are altered downward when using this method.
Pristine Insurance Policy (The Initial Stop)

1) Place your initial stop slightly below the current bar’s low or the previous bar’s
low, whichever is lower. If the previous bar’s low is too far away, use the current bar’s
low. For Swing Trades, if the current bar’s low is also too far away, use the Pristine’s
30-min. Sell Rule (Keep in mind that you alter the odds downward).
Pristine Profit-Taking (Trade Management) Strategies

1) Sell above the prior high and/or…
2) Sell at least ½ of your position after a rapid advance (WRB) and/or…
3) Start trailing your stop under each previous bar’s low after two bars completed
4) Sell on any gap open to the upside (Swing Trades), after two consecutive up days or after the stock
has lifted away from its r20ma.
236
The Pristine Method® of Trading
Target
Buy
Basic Buy Criteria
1. Higher highs/lows Stop
2. r20ma
2. r40ma
3. r20ma>r40ma
4. Space in Between r20ma
r40ma
Action Steps
1. Buy above prior high (NRB)
2. Place stop below prior low
3. Set target above pivot high
4. Trail mode after two bars
237
What is the most likely direction now?

Play Rating
PBS (20 pts)
COG (10 pts)
NB (10 pts)
PBO
40 pt Play
Are we missing any “add-ons”? 20ma PBS

PBO 40ma
Stage 1
238
d
Uptrend Criteria
c
1. Higher Highs (a –d)
2. Higher Lows (1 – 5) b
5
a 3
All Pullbacks are Buyable
Breakouts are also Buyable
r20ma
2
r40ma
1
239
Up Trend Criteria D
1) Higher Highs (A - D)
2) Higher Lows (1 -4) C
4) Rising 40ma (r40ma) B 4
5) Comfortable Space Between
3
A 2
Even Space
r20ma
1
r40ma
240
Pristine Buy Set-up
Can you score this PBS?

Action Steps
1. Buy above prior high (NRB)
2. Place stop below prior low Target
3. Set target above pivot high
4. Trail mode after two bars
Buy
Stop
Basic Buy Criteria
1. Higher highs/lows
2. r20ma
2. r40ma
3. r20ma>r40ma
241
The Pristine Method® of Trading - QUIZ
➢Find and Circle a Breakout Play (PBO)

➢Find and Circle all the Pristine Buy Set-ups (PBS)
➢Find and Circle all mS areas
➢Find and Circle all 40/60 retracements
r20ma
r40ma
242
Pristine Trading Quiz
➢Find and Circle a Breakout Play (PBO)

➢Find and Circle a Pristine Buy Set-up (PBS)
➢Find and Circle a Climactic Sell Setup (CSS)
r20ma
r40ma
243
Pristine’s Master Sell Trading Plan
Pristine Sell Short Criteria

1) Stocks must be in a solid down trend, making lower highs and lower lows.
Note: This ensures that the stock is in Stage 4, the most bearish period of its cycle.
2) Stocks must have a smooth declining 20-period moving Average (d20MA).

3) Stocks must have a smooth declining 40-period moving Average (d40MA).
4) The d20ma must be below its d40ma.
5) There must be an nice even space in between the d20ma & d40ma (railroad
tracks)
ACTION: Now the Pristine Trained Trader (PTT) can use these stocks to short ALL
trading rallies utilizing the Pristine Sell Setup (PSS) and the Pristine Breakdown (PBD).
Pristine Sell Setup (PSS)

1) Wait for a Pristine Sell Setup (PSS) to form then….
244
Pristine’s Master Sell Trading Plan
Pristine Entry Method(s)

1) Sell Short $0.01 below the previous bar’s low price, whenever it occurs or…
2) Sell Short below the lowest price established during the first 30-minutes of trading, if
the previous bar’s low is too far away. This alternative entry method should be used
for Swing Trading and can often get the PTT into a play early, when the market is
weak. But know that the odds of the play are altered downward when using this
method.
Pristine Insurance Policy (The Initial Stop)
1) Place your initial stop slightly above the current bar’s high or the previous bar’s
high, whichever is higher. If the previous bar’s high is too far away, use the current
bar’s high. If the current bar’s high is also too far away, use the Pristine’s 30-min.
Buy Rule (For Swings). Keep in mind that you alter the odds downward with this
alternative.
Pristine Profit-Taking (Trade Management) Strategies

1) Cover below the prior low and/or…
2) Cover at least ½ of your position after a rapid decline (WRB) and/or…
3) Start trailing your stop above each previous bar’s high after two bars and/or….
4) Cover on any gap open to the downside (Swing Trades), after two consecutive down days or
after the stock has dropped away from its d20ma.
245
Stage 3 a
d20ma
b d40ma
1
c
2
Down Trend Criteria d
1. Lower Highs (a –e) Even Space
Stage 2 3
2. Lower Lows (1 – 6) e
3. Declining 20ma (d20ma) 4
4. Declining 40ma (d40ma) Stage 4
All Rallies are Shortable

Breakdowns are also Shortable
6
246
Pristine Guerrilla Trading Tactics
www.pristine.com
247
Introduction to Guerrilla Trading
In this section, we will reveal a few of our most cherished trading tactics. These are
tactics and trading techniques that were designed specifically for the professional
trader who seeks a frequent number of short-term trading plays each day. These
following tactics are so reliable for us, that many PTTs have decided to focus on them
exclusively to earn their living entirely from the markets. We have always taught that
the professional trader needs only 2 to 3 highly reliable trading tactics in his arsenal in
order to earn a very comfortable living trading.
You are about to be made aware of 12 such tactics. These tactics will help the trader
consistently “grind” out profits, day in and day out. They do not always result in the
way of huge gains, but the consistency of their wins makes them an indispensable
addition to your trading arsenal. With these 12 Guerrilla Trading Tactics, your trading
can be taken to an entirely new level. So, in advance, let us say:
Welcome to the Professional’s Trading Circle!
248
The Bullish 20/20 Bar
• The Bullish 20/20 bar is defined The Bullish 20/20 Bar the most recent bar
by any wide-range period that
has its open price near the low of
that period and its close near the
high of that period. Close at or near
the top of the
• We call it 20/20 because as a Bullish
bar’s range.
general rule, the open should be in 20/20 Bar
the lower 20% of the period’s
range, and the close should be in
the upper 20% of the period’s Open at or near
the bottom of the
range, making a long, light or bar’s range.
green colored candlestick.
• Bullish 20/20 bars are far more

important when they occur after at • The Bullish 20/20 bar signifies
least one prior up bar. Several that many traders and investors
proceeding up bars makes the are already long.
20/20 even more significant.
249
The Bearish 20/20 Bar
• The Bearish 20/20 bar is defined

by any wide-range period that The Bearish 20/20 is the most recent bar
has its open price near the high
of that period and its close near
the low of that period.
• We call it 20/20 because as a Open at or near

the top of the
general rule, the open should be bar’s range.
in the upper 20% of the period’s Bearish
range, and the close should be in 20/20 Bar
the lower 20% of the period’s
range, making a long, solid dark Close at or near
the bottom of the
or red candlestick. bar’s range.
• Bearish 20/20 bars are far more

important when they occur after
at least one prior down bar. • The Bearish 20/20 bar signifies
Several proceeding down bars that many traders and investors
make the 20/20 more significant. have already sold.
250
The Pristine Gap–n–Snap Play – Tactic One
Two fluid red

bars in a row.
1. The stock should have two
fluid red bars in a row.
2. We need a wide-range bar on

the current day. At least $1.50
(For an avg. $30 stock) or 5%.
3. The open of the current day must

be in the top 20% of the day’s Important Points @ The GnS
price range. 1. Works best as a 1 to 2-day Trading Tactic.
2. Works best on volatile NASDAQ stocks.
4. The close must be in the bottom
20% of the day’s price range.
251
The Pristine Gap–n–Snap Play – Tactic One

1. If the stock gaps open to the
Two fluid red
downside by $0.50 (For avg. bars in a row.
$30 stock) or more, and then
begins to rally back, buy it
above the previous day’s low.
Buy long above

2. Place a protective stop the previous
slightly below the current day’s low.
Stop loss slightly
day’s low. below the current
Stock gaps down day’s low.
at the open.
3. Sell for a $2 plus profit (For
avg. $30 stock) or on the
2nd day, whichever comes
first. The Gap-n-Snap Play (GnS)
252
The Pristine Gap–n–Crap Play / Tactic Two

Two fluid green
fluid green bars in a row. bars in a row.
2. Wide-range day at least

$1.50 (For avg. $30 stock)
or 5%.
3. The open must be in the

bottom 20% of the day’s
range. Important Points @ The GnC
1. Works best as a 1 to 2-day Trading Tactic.

4. The close must be in the 2. Works best on volatile NASDAQ stocks.
top 20% of the day’s range.
253
The Pristine Gap–n–Crap Play / Tactic Two

1. If the stock gaps open to
the upside by $0.50 or more
(For avg. $30 stock) or 5%, Stock gaps up Stop loss slightly
at the open. above the current
and then begins to fall back, day’s high.
sell (short) below the
previous day’s high.
2. Place a protective stop
slightly above the current Two fluid green Sell short below
bars in a row. the previous day’s
day’s high. high.
3. Cover for a $2 plus profit

(For avg. $30 stock) or on
the 2nd day, whichever
comes first. The Gap-n-Crap Play (GnC)
254
Bullish Gap Surprise – Tactic Three
The Setup The Action Two fluid red

bars in a row.
1. The stock should have 2

2. We need a wide-range
day of at least $1.50 (for
avg. $30 stock) or 5%.
Above average or
climactic volume.
top 20% of the day’s range.
4. The close must be in the

Important Points @ The +GS
range.
5. Above average volume.
255
Bullish Gap Surprise – Tactic Three

1. If the stock opens (gaps) Two fluid red
bars in a row.
up by at least $0.50 (For
avg. $30 stock) above the
previous day’s closing price,
Stock gaps up at
buy it above the first 5 min. the open. Buy
Stop loss slightly
high (aggressive traders below the prior immediately.
can use ‘immediate’ entry). day’s low.
Above average or
2. Place a protective stop climactic volume.
slightly below the prior
day’s low.
3. Sell for a $2 to $3 plus

Bullish Gap Surprise Play (+GS)
profit (For avg. $30 stock)
or on the 2nd day,
whichever comes first.
256
Bearish Gap Surprise – Tactic Four
The Setup The Action Two fluid green

bars in a row.
1. The stock should have

two fluid green bars in a
row.
Above average or
2. We need a wide-range climactic volume.
day of at least $1.50
(For avg. $30 stock) or
5%.
range.
4. The close must be in the Important Points @ The –GS
top 20% of the day’s
range. 1. Works best as a 1 to 2-day Trading Tactic
2. Works best on volatile NASDAQ stocks
5. Above Average Volume.
257
Bearish Gap Surprise – Tactic Four

1. If the stock opens (gaps) Stop loss slightly
above the prior
down by at least $0.50 day’s high.
Two fluid green
(For avg. $30 stock) bars in a row.
below the previous day’s
closing price, sell (short)
below the first 5 min. low
(aggressive traders can Stock gaps down at
the open. Sell
use ‘immediate’ entry). immediately.
Above average or
2. Place a protective stop climactic volume.
slightly above the prior
day’s high
3. Cover for a $2 to $3
plus profit (For an average
Bearish Gap Surprise Play (-GS)
$30 stock) or on the 2nd
day, whichever comes first
258
Bullish 20/20 Play – Tactic Five
Two fluid red
The Setup The Action bars in a row.

2. We need a wide-range day

of at least $1.50 (For avg.
$30 stock) or 5%.
Above average
volume.
3. The open must be in the top

20% of the day’s range.
4. The close must be in the Important Points @ The +20/20

bottom 20% of the day’s 1. Works best as a 1 to 2-day Trading Tactic
range. 2. Works best on volatile NASDAQ stocks

259
Bullish 20/20 Play – Tactic Five

1. If the stock opens less then Two fluid red
$0.50 (For avg. $30 stock) bars in a row.
above the previous day’s low,
wait for 30 minutes of trading to
transpire. Then, buy the stock
above the high established during Stop loss slightly Stock opens
the first 30 minutes of trading. below the lowest relatively even. Use
low of the last two 30-min. buy rule.
days.
2. Place a protective stop slightly Above average

below the current day’s low or the volume.
previous day’s low, whichever is

lower.
3. Sell for a $2 plus profit (For avg. The Bullish 20/20 Play (+20/20)
$30 stock) or on the 2nd day,

whichever comes first.
260
Bearish 20/20 Play – Tactic Six
The Setup The Action Two fluid

green bars in a
row.
fluid green bars in a row.
2. We need a wide-range
day of at least $1.50 (For
Above average
avg. $30 stock) or 5%. volume.

range.
4. The close must be in the

top 20% of the day’s range. Important Points @ The -20/20


261
Bearish 20/20 Play – Tactic Six

1. If the stock opens less
then $0.50 (For avg. $30 Stop loss slightly
above the highest
stock) below the previous high of the last
Two fluid
day’s high, wait for 30 green bars on
two days.
minutes of trading to a row.
transpire. Then, sell short

the stock below the low
established during the first 30 Stock opens
minutes of trading. relatively even. Use
Above average 30-min sell rule.
2. Place a protective stop volume.
slightly above the current
day’s high or the previous
day’s high, whichever is
higher.
The Bearish 20-20 Play (-20/20)
3. Cover for a $2 plus profit
(Avg. $30 stock) or on the
2nd day, whichever comes
first. 262
The Bull Trap – Tactic Seven

1. The current bar must represent a very bullish day, a wide range 20/20 bar.
Note: Preferably this day has been proceeded by a multi-day upward move.
2. The open must be in the bottom 20% of the day’s range.
3. The close must be in the top 20% of the day’s range.
4. Above average volume on the current day (optional).
A B C D
This method works accurately on stocks in all price ranges. It is best used as
a multi-bar strategy. It should be played with smaller than normal trading lots.
263
The Bull Trap – Tactic Seven

1. Short the stock $0.01 below the low of the prior day (the Bull day) if it’s been violated.
Note: Some traders may prefer to short the stock near the close, as it is hard to
determine if the stock will remain below the low of the Bull day.
2. Place a protective stop slightly above the current day’s high or the previous day’s high,
whichever is higher.
3. Manage as a multi-day play (3 – 5 days move) as per your Trading Plan.
A B C D
The Bull Trap Play
(+Trap)
The dotted red lines in examples A-D show where the trader goes short. Keep
in mind that the bull day does not need to be as wide as the typical 20/20 day.
The key to this strategy lies in the “immediate” break to the downside.
264
The Bear Trap – Tactic Eight
1. The current bar must represent a very bearish day, a wide range 20/20 bar.
Note: Preferably this day has been proceeded by a multi-day down move.
2. The open must be in the top 20% of the day’s range.
3. The close must be in the bottom 20% of the day’s range.
4. Above average volume on the current day (optional).
A B C D
The Bear Trap Play
(-Trap)
This method works accurately on stocks in all price ranges. It is best used as
a multi-day strategy. It should be played with smaller than normal trading lots.
265
The Bear Trap – Tactic Eight

1. Buy the stock $0.01 above the high of the prior day (the Bear day) if it’s been violated.
Note: Some traders may prefer to buy the stock near the close, as it is hard to
determine if the stock will remain above the high of the Bear day.
2. Place a protective stop slightly below the current day’s low or the previous day’s low,
3. Manage as a multi-day play (3 – 5 days move) as per your Trading Plan.
A B C D
The Bear Trap Play
(-Trap)
The dotted red lines in examples A-C show where the trader goes long. Keep
in mind that the bear day does not need to be as wide as the typical 20/20
day. The key to this strategy lies in the “immediate” break to the upside.
266
Guerrilla Trading Tactics
20/20
-20/20
-GS
+GS
267
Gap N Snap Play
WRB Ending Bar
Novice Ending Volume
268
Bullish Gap Surprise
Target
Entry
Stop
Pro Igniting Volume
Novice Ending Volume
269
Bull Trap & Bear Trap
What’s This?
-GS ignites a
new move lower
Bull 20/20 the Bear

Trap ignites
a new move higher
Novice/Pro Volume?
Novice Volume Pro Volume
270
The 1-2-3 Continuation Buy – Tactic Nine
1. Bar 1 must be a wide range bullish 20/20 IGNITING BAR. This is the bar that dictates the
direction of the trade. Note: Keep in mind that this strategy can be applied in almost any
time frame.
2. Bar 2 must stay (trade) within the top 1/3 of Bar 1, without trading above Bar 1’s high.
3. The high of Bar 2 must be equal or “near” equal with the high of Bar 1.
Note: This establishes a mini double top (two equal highs) which represents price
resistance.
4. Preferably, Bar 2’s close is “below” its open, creating a negative (dark) candle.
A B C D
The Bullish 123
Continuation Play (+123)
This method works accurately on stocks in all price ranges. It is also an

excellent intra-day tactic used on hourly, 15- & 5-min. charts. This buy
tactic helps traders jump on board strong trends already in progress.
271
The 1-2-3 Continuation Buy – Tactic Nine

1. Immediately buy when Bar 3 trades above the highs of Bar 1 and Bar 2.
Note: This signifies that a two-bar breakout has occurred.
2. Place your stop just under the low of Bar 2.
Note: Due to a tight stop Risk/Reward is usually increased.
3. Use a trailing stop strategy until
a) your objective has been met,
b) the low of a reversal bar has been violated or
c) a gap up occurs (Swing Trades).
The Bullish 123 A B C D

Continuation Play (+123)
The dotted green lines in Examples A – D show where the trader goes
long. Note that in all examples, Bar 1 is up strongly in the form of a
bullish 20/20 period. Keep in mind that it is Bar 1 that determines the
direction of the trade (long or short). The key to this strategy lies in the
fact that the stock rested enough to explode upward again.
272
1-2-3 Continuation Play
+123
+WRB
r20ma 200ma
273
Daily 1-2-3 Continuation Play
Stage 4
+123 Entry
+WRB Igniting Bar
Stage 1
274
60’ 1-2-3-4 Continuation Play
Stage 2
Stage 4
+1234 Entry
+WRB
Stage 1 +1234 Stop
275
Intra-day 1-2-3 Continuation Play
+123 Entry
r20ma
+WRB
+123 Stop
r200ma
276
The 1-2-3 Continuation Short – Tactic Ten
1. Bar 1 must be a wide range bearish 20/20 IGNITING BAR. This is the bar that dictates the
direction of the trade. Note: Keep in mind that this strategy can be applied in almost any
time frame.
2. Bar 2 must stay (trade) within the bottom 1/3 of Bar 1, without trading below Bar 1’s low.
3. The low of Bar 2 must be equal or “near” equal with the low of Bar 1.
Note: This establishes a mini double bottom (two equal lows) which represents support.
4. Preferably, Bar 2’s close is “above” its open, creating a positive (light) candle.
The Bearish 123

Continuation Play (-123) A B C D
This method works accurately on stocks in all price ranges. It is also an

excellent intra-day tactic used on hourly, 15- & 5-min. charts. This sell short
tactic helps traders jump on board strong trends already in progress.
277
The 1-2-3 Continuation Short – Tactic Ten

1. Immediately short when Bar 3 trades below the lows of Bar 1 and Bar 2.
Note: This signifies that a two-bar breakdown has occurred.
2. Place your stop just above the high of Bar 2.
Note: Due to a tight stop Risk/Reward is usually increased.
3. Use a trailing stop strategy until
a) your objective has been met,
b) the high of a reversal bar has been violated or
c) a gap down occurs (Swing Trades).
A B C D
The Bearish 123
Continuation Play (-123)
The dotted red lines in Examples A – D show where the trader goes
short. Note that in all examples, Bar 1 is down strongly in the form of a
bearish 20/20 period. Keep in mind that it is Bar 1 that determines the
direction of the trade (long or short). The key to this strategy lies in the
fact that the stock rested enough to collapse downward again.
278
Bearish 1-2-3 Continuation Play
PBD
-123
r20ma
r40ma
279
Bearish 1-2-3-4 Continuation Play
-WRB
d20ma
-1234
What pattern is this?
What type of volume is this?
280
The Bearish Mortgage Play – Tactic Eleven
1. Bar 1 must be a bullish 20/20 bar. This is the bar that indicates that a large number of
longs have been committed. Note: The smaller the upper and lower tails on Bar 1 the
better.
2. Bar 2 must open below the low of Bar 1.
Note: Although the Mortgage Play is only a two-bar strategy, it’s often more potent after
a multi-day move up (The more people trapped, the more powerful).
A B
open open
281
The Bearish Mortgage Play – Tactic Eleven

Bearish Mortgage Play (-Mort)
1. Immediately short at the market
when Bar 2 opens below the low of Stop Loss
Bar 1. Note: This signifies that now
every hedge fund, mutual fund, trader,
and investor who bought during Bar 1
is now in negative territory. All longs A B
are thrown for a loop. Short at Open
2. Place your stop just over the high of

Bar 1. Note: This makes for a large
stop. If played this way, you must
adjust your position size. Many traders
may want to opt for a tighter stop The Mortgage Short Play requires a large stop, signified by
based on an intraday chart. the dotted red lines, are in Examples A – B.
We encourage playing small due to the large stop loss.
3. Use a trailing stop strategy until a) When applied properly, this pattern can produce large gains.
your objective has been met, b) the
high of a reversal bar has been violated
or c) a gap down occurs.
282
The Bullish Mortgage Play – Tactic Twelve
1. Bar 1 must be a bearish 20/20 bar. This is the bar that indicates that a large number of
traders have sold. Note: The smaller the upper and lower tails on Bar 1 the better.
2. Bar 2 must open above the high of Bar 1.
Note: Although the Mortgage Play is only a two-bar strategy, it’s often more potent after a multi-day
move down (The more people trapped, the more powerful).
open open
A B
283
The Bullish Mortgage Play – Tactic Twelve

Bullish Mortgage Play (+Mort)
1. Immediately buy at the market
when Bar 2 opens above the high of
Bar 1. Note: This signifies that now
every hedge fund, trader, and
investor who sold short during Bar 1
is now in negative territory. All shorts
A Buy at Open B
are thrown for a loop.
2. Place your stop just below the low
of Bar 1. Note: This makes for a Stop Loss
large stop. If played this way, you
must adjust your position size. Many
The Mortgage Short Play requires a large stop, signified by
traders may want to opt for a tighter
the dotted red lines, are in Examples A – B.
stop based on an intraday chart. We encourage playing small due to the large stop loss.
3. Use a trailing stop strategy until a) When applied properly, this pattern can produce large gains
your objective has been met, b) the
low of a reversal bar has been
violated or c) a gap up occurs.
284
Bull Mortgage Play
Bull Mortgage Play:

Trader buys w/ a multiple
day target.
40ma
20ma
Bearish Bar at New Low
285
Bear Mortgage Play
Bear Mortgage Play:

Trader shorts at open w/ a
multiple day target.
WRB, 5% or more
20ma
Entry
286
Bullish Mortgage Play (+BM)
ATS Discusses an alternate way to enter

charts that don’t set up as nice as this.
2-Min. Chart
PBO
PBO
20ma
Bull Mortgage Play
200ma Daily Chart
287
Bearish Mortgage Play (-BM)
PSS 2-Min. Chart

Gap
PSS
20ma
Bear Mortgage Play

Daily Chart
What is this?
288
Pristine Trading Opportunities
Marking a chart up in this fashion helps to

strengthen the trader’s opportunity spotting skills.
To shorten the learning curve, we must learn
forward (current) as well as backward (past). CSS PBS
Pro Gap
PBO
r20ma
PBS r40ma
PBO
PBS
289
Swing & Guerrilla Plays
NH
NH Pristine Plays
1) CBS
2 2) Failed PSS; Why?
3 6 3) PSS; Retest
8 4) CBS/GNS
5) Bull MP
NG 6) Failed PSS; Why?
7 7) +20/20/PBS
8) +20/20/PBS
NG = Novice Gap
1 NH = New High
5
4
Big Vol
290
Name These 3 Guerrilla Plays
1 3
Name That Guerrilla!

1.__________________
2.__________________
3.__________________
291
Pristine Trading Opportunities
13
Which plays offer Guerrilla Trading entries?
11
1 3 7 9
5
8 12
2 10
4
6
292
Guerrilla Trading Tip
Wide Distance
Wide Distance
Pristine Trading Tip: Stocks are unable to stay far from the 20ma for
extended periods of time. Therefore, wide swings away from the 20ma
represent the best Guerrilla Trading opportunities. Find them!
293
Name That Trade
1 3
6
294
Monthly Trade Opportunities
4
Name all four Pristine

Trading Opportunities
1. ________________
2. ________________
3. ________________
4. ________________
20ma
40ma
3
2
1
295
Pristine’s #1 Micro Trading Tactic &
Pristine’s Momentum Method
www.pristine.com
296
Introduction To The Late Day Breakout Play
In this section, we will teach our #1 technique that will help the trader play a
very astute micro-trading game. As mentioned before, we believe that the highest
level of traders are not one-dimensional. The trader who has moved into that
realm that we call mastery, knows how to handle himself in various dimensions,
in various time frames, and with various trading styles. The micro-trade (or
intra-day trade) is the most demanding of all trades, and it often requires the
greatest degree of skill, and without a doubt, the greatest degree of emotional
and psychological stability. The intra-day trading tactic we are about to show you
forms the foundation upon which our entire micro-trading style is built. The
following technique will provide the tools that we believe every micro-trader
needs in order to have long-term success. Any other addition, style or approach,
without the following, will not prove useful over long periods of time. Delve into
the following section with all your heart and soul and you will walk away with the
nuts and bolts of a skill that has the power to reward you for a lifetime.
297
Late-day Breakout
Sell
Late-day Breakout Criteria Action
1. Stock is up on the day 1. Buy Breakout (BO) bar
2. Place stop below BO bar or base
2. Stock is at or near its high
3. Sell Away from 20ma
3. 20ma is above 200ma
4. 20ma is flat or near flat
5. Stock breaks out after 2:15 Buy
Stop
PBO 200ma
20ma
Volume
298
2-minute Late-day Breakout
Sell
Late-day Breakout Criteria
1. Stock is up on the day Buy
2. Stock is at or near its high
3. 20ma is above 200ma
4. 20ma is flat or near flat
5. Stock breaks out after 2:15
200ma Stop
Action
20ma 1. Buy Breakout (BO) bar
2. Place stop below BO bar or base
Volume Increase
299
Late-day Breakout
Action
1. Buy Breakout (BO) bar
2. Place stop below BO bar or base Buy
Stop
20ma
300
Intra-day Breakout Plays
Trading Tip: The Pristine

Breakout Trader buys pauses Sell Area w/ Trailing Stop
(bases) near the 20ma and sells
rallies away from the 20ma.
Buy
Stop
301
Pristine’s Momentum Trading Approach
The Pristine Trained Momentum Trader
would buy 1 full lot (ex. 1,000 shares) at
d
each PBS (1 – 4), while selling 1/2 the lot c Action Steps
(ex. 500 shares) after several bar rallies
(a – d) away from the rising 20-period At ‘1’ Buy 1,000 shares
moving average.
At ‘a’ Sell 500 shares
Tip: This is sometimes referred to us as b At ‘2’ Buy 1,000 shares
“pyramiding” into a stock for maximum profit a 3 4
potential. The “momentum” positions are At ‘b’ Sell 500 shares
held as long as the stock remains above the
40-period moving average. At ‘3’ Buy 1,000 shares
r20ma
2 At ‘c’ Sell 500 shares
1 r40ma
At ‘4’ Buy 1,000 shares
At ‘d’ Sell 500 shares
2,000 shares open

2,000 shares closed
Stop: Breakeven
point or 40MA,
The ability to ride the entire trend for all its worth is the hallmark of a true master trader. The Pristine Trained Master
Trader, with help from Pristine ESP™, knows which stocks to “pyramid” into, and when additional buys and sells
should occur. Each arrow/number shows an additional buy opportunity, and the letters ‘a’ through ‘d’ show when
partial sells could have been initiated. By buying 1,000 shares, and selling 500 shares near each letter, the Pristine
Trained Momentum Trader would currently own 2,000 shares, and already taken profits on 2,000 shares.
302
Pristine’s Momentum Trading Approach
e
Action Steps
d At ‘1’ Buy 1,000 shares

1-2-3 Breakout
a b c
At ‘b’ Sell 500 shares

5
1-2-3 Breakout 3
4
At ‘c’ Sell 500 shares
2
1 At ‘d’ Sell 500 shares
r20ma At ‘5’ Buy 1,000 shares
At ‘e’ Sell 500 shares

r40ma
2,500 shares open

2,500 shares closed
Stop: Breakeven
point or 40MA,
303
Pristine’s Intra-day Momentum
Trading Approach
Action Steps
d At ‘1’ Buy 1,000 shares

c
e
b
4 At ‘b’ Sell 500 shares

2 r20ma
At ‘c’ Sell 500 shares
a
3 At ‘4’ Buy 1,000 shares
At ‘d’ Sell 500 shares

Daily Uptrend,
Nice Gap At ‘e’ Sell 2000 Shares
r40ma
2,500 shares open
1
2,500 shares closed
Stop: Breakeven
point or 20MA,
1 whichever is higher.
304
Where to Go From Here
www.pristine.com
You have now learned all of the tools and patterns needed to trade anything
that is bought and sold in an open market. With all of these tactics and all of
the timeframes open to you, you may see many trade opportunities every
day. Some will be better than others.
It now becomes important that you recognize combinations of high odds

tactics occurring on different time frames. The entry is important and the
management is critical.
Now we will take and organize all the information you have learned into three
steps that should happen on every trade, and provide you with examples.
These setups happen every single day.
306
Your Next Few Days
• DO NOT trade for the next few days

• Review and re-read the TPM Manual
• Open your trading platform and go back in time and
scroll your charts one bar at a time and see if you can
find the:
• Stages
• Trends
• Setups
• Entries
307
Your Next Few Days

• Start a document called ‘What I want to trade’ and
start listing things you like or do not like:
• Pullbacks or breakouts
• What time frame
• How long you like to hold your plays
• Your favorite setups
308
➢ Find a Picture of Power – There Are 4 You Should Look For…

➢ A Strong Trend on a higher timeframe
➢ A Wide Range Bar clearing significant support or resistance
➢ Extreme Relative Strength or Weakness
➢ Gapping Stocks
➢ Find the Timeframe of Focus to Play the Strategy

➢ This will be determined by support and resistance levels on timeframes
➢ The appropriate strategy will be the one that occurs in the proper location
➢ Any strategy applies: PBS/PSS, PBO/PBD, +123/-123, Bull/Bear Trap
➢ Find a Great Entry
➢ We are highly accurate with our pictures of power and strategies once the
proper timeframe of focus is found, so be aggressive with a good entry
➢ Get in early using advanced management
➢ Consider bidding/offering with advanced management
309
+123 w/Strong Daily and Market Timing
5 Minute Stock
+123 Entry
Daily PBO
Stock Strong
Market Strong
+123 Stop
5’ QQQ Daily Stock
310
PBD w/Weak 60’ and Market Timing
5’ Stock
5’ QQQ
Market Weak Stock Weak
60’ Stock
PBD Stop
PBD Entry
311
Your Next Few Days

• Begin paper trading or trading small share-size:
• Get used to your trading platform

• Get used to a few stocks and how they act
• Learn your strategy in real time
• Do NOT paper trade too long as it can be false confidence (3-4wks is reasonable amt.
of time)
• Switch to VERY small risk; like 5-10-25 dollars
• Commissions will be an expense of learning for a while
• These steps are VERY important, so don’t skip them!
312
Follow-Up Services:
• Virtual Trading Floor: The Black Room
• Focuses on day trading
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• Focuses on 2 to 5 day swing trading
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he will provide multi-day swing opportunities, trade management of open positions, market bias, etc.
(recordings will be provided)
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• Sami's 100+ page Swing Trading Guide (VALUE: $295)
• Sami's Elite Swing Trading Course with recording (taught live during week 1 of the Program, March
20, 22, & 24) (VALUE: $100)
• Free quarterly live retakes of the Swing Course for as long as you are a subscriber.
• Custom Swing Trading Spreadsheet (VALUE: $100) to track and analyze your trades with Sami's
custom-build spreadsheet.
Please talk to a Counselor for more information: info@t3livecom 313

Future Classes
• Retake of TPM will increase your knowledge.
• Highly recommended to help assimilate the information.
• Advanced Technical Strategies (ATS) is incredible to gain more understanding of

how the charts work to turn those moves into money.
• Along with TPM this is perhaps the most important course we offer.
• Advanced Gap Strategies, Advanced Management Strategies, and Advanced

Scalping Techniques and more for specialized needs.
** We have course packages available so please talk to a

Counselor for more information: info@t3live.com
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Good Luck!
Thank You for Your Attendance
You have been given A LOT of valuable information…
You have been told how to apply it…
What you do now is up to YOU!
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Trading The Pristine Method

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Trading the Pristine Method

1. Introduction 3. Pristine Buy and Sell Short Setups

4. Power Trading Combos Stages 2 & 4 6. Transitional Phases A, B, C, D

8. Pristine’s Master Trading Plan 10. Pristine’s #1 Micro-Trading Tactic

The Pristine Method® considers three major time-frame

Let’s briefly review each broad trading

Long Term Intermediate-term | Short term

• Used for broad studies, cyclical analysis and long-term trading

Monthly Chart (each bar = approx. 20 trading days)

Trading Tip: This time frame is used

PBS w/ Bottoming Tail

Trading Tip: On the last day of each month, the

Circles = Pristine Trading Opportunities

(3/98) (3/00) (3/02)

Long Term Intermediate-term Short Term

• Used primarily for Swing trading & Core trading

Daily Chart (each bar = 1 full trading day)

Circles = Pristine Trading Opportunities

Circles = Pristine Trading Opportunities

Long Term | Intermediate-Term Short-term

Circles = Pristine Trading Opportunities

Trading Tip: The Pristine Trained Trader (PTT) uses the

Circles = Pristine Trading Opportunities

Circle = Pristine Trading Opportunity

Trading Tip: The Pristine Trained Trader (PTT) uses the

Trading Tip: The Pristine

Circles = Pristine Trading Opportunities

The Pristine Method® Considers Four Major

• Wealth Building Style

• Income Producing Style

Wealth Building Style Income Producing Style

1. Core Trading (2 weeks to months). This wealth-building style of trading

2. Swing Trading (2 to 10 days). This wealth-building style of trading is designed

The Core trader looks for Pristine Trading

Circles = Pristine Trading Opportunities

Some Swing Traders sell only part of their

The Swing Trader buys dips at or near the

2. Micro-Trading (seconds to hours). This income producing style is what most

Circles show four, 2 to 3 day

The Pristine Day Trader looks to buy dips at or

20ma is rising (r20ma) +

Circles = Pristine Trading Opportunities

*Wide distance between 20ma & 200ma calls for caution

Why Use Candlesticks?

• The use of Japanese Candlesticks will help the Pristine Trained

Determining Who Won The Battle

Bulls Win Bears Win

No One Wins Bottoming Tail (BT) Topping Tail (TT)

Tip: More than 5 up

3 Bars Up 4 Bars Up 5 Bars Up

Really Really, Really

3 Bars Down 4 Bars Down 5 Bars Down

4 Up Bars 3 Up Bars 5 Down Bars

Chart Courtesy of MasterTrader.com

Introduction to the Pristine Method® of Trading

In this section, we will reveal two of Pristine’s Master Trader Keys to

• The entire life of a stock and/or a market is

• This cycle forms the basis for one’s ability to

• The key to trading successfully is knowing where

• In Stage 4, the Pristine Trained

buying and shorting.

• Stage 1 back to Stage 1 can span

The Only Way To Win The Only Way To Lose