Beruflich Dokumente
Kultur Dokumente
com Presents
Mastering Breakouts
and Breakdowns
Dan Gibby
Lead Moderator, Pristine.com Advanced Stocks and Derivatives
Trading Room, and Senior Pristine Certified Trainer
The authors and publisher assume no responsibilities for actions taken by readers. The authors and publisher are not
providing investment advice. The authors and publisher do not make any claims, promises, or guarantees that any
suggestions, systems, trading strategies, or information will result in a profit, loss, or any other desired result. All
readers and seminar attendees assume all risk, including but not limited to the risk of trading losses.
Day Trading can result in large losses and may not be an activity suitable for everyone.
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Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or
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2
Table of Contents
Introduction Breakout/down Strategies
The Pristine Method®
Initial Pristine Breakout/Down
Trading Style and Time Frames
PBO/PBD from Wide Range Bars
Trading Plan
PBO/PBD from Gaps
Basics and Foundation Retracement After Breakout/Down
Quality Consolidation
Concluding Thoughts
Pristine ESP™
3
What This Seminar is Not About
5
Who is Pristine?
ONSITE SEMINARS
DVD
COACHING
The BOOK
8
Traits of a Successful Trader
Money Management
Guerrilla Trades
Failed Patterns
Concept Review
Quality of setups
1515
Volume Analysis
Volume = Money and represents commitment or lack thereof
20MA
20MA
20MA
Tight arrangement of bars
with few tails, overlapping
bars, and gaps 18
Improper Basing/Consolidation
20MA 20MA
20
Breakouts and Breakdowns
General Comments
Can be traded on any time frame and in any trend
Stops are always placed slightly below the support area for
longs, or slightly over the resistance area for shorts 22
Initial and
Secondary
Breakout
PBO to New Uptrend
Initial PBO
First Retracement
Secondary Breakout
33
11
22
25
Proper Initial Pristine Breakout
Stop
Stop Loss
20MA
50
Some suggest buying over
60 a prior high, irrespective of
the Retracement level
50
60
Secondary
PBO/PBD are
tradable if they
have consolidated
over time at the
100
prior high
28
Buyable Secondary PBO
3
PBO
1 2
Is this Secondary
+WRBThese afterwere both PBO buyable? Why?
failedrecommended
PBD as breakout
longs one day in a
competitor’s newsletter
1. PBO
Not a Pristine Initial
sinceBreakout
very extended to make new
2. MA
highs (also 5-day First
of Retracement
TRIN a CBS 3. under prior low) Breakout
Secondary
29
Breakout Types
1. Initial Breakout 3
2. First Retracement
3. Secondary Breakout
2
3
20MA 1
2
3
30
Stops on Breakouts
This is low
risk entry
31
Poor Pristine Breakouts
Would you be a buyer or
seller into strength here? Buy
PBO?
Incorrect: Consolidate in
Extended a tight range
before PBO?
Congestion to
Incorrect: Deep the left?
retracement
Correct: Pull back Tails,
into +WRB overlapping
bars, and gaps? 35
PBO and Retracement Quiz
G
F H
C
20MA
E
B D
A
36
PBO to New Uptrend
Buy retracement
since extended
Pull back to gap fill
from 2x bottom; buy
over prior bar’s high
PBO after
2x bottom buy
GOOG - Daily
PBO
Failed
breakdown
PBO
S S
Weekly
Reverse H&S H 3838
PBO/PBD Stock Scanning
Pristine ESP™ Scans
Swing Trading Module
Narrow Range 7 Setup; Daily Basing; Daily Above Average
Up/Down Volume
Guerrilla Trading Module
10/10 Buy/Sell Setup; Wide Range Up/Down Bars;
Bullish/Bearish Engulfing Bars
Micro Trading Module
15-Min. Basing; Basing in Top 2% of Day’s Range; Gap Up and
Strong; Gap Down and Strong; 30-Min. Gap Buy/Sell
Basic Trading Module
Above Average Up/Down Volume; 52-Week High/Lows; Top
20% Gainers/Losers; One Month High
39
Pristine ESP™ 30-Min. Gap Buy
15-Min.
Stocks that gap up/down and then make new highs/lows after
the first 30-Min. session often ignite new moves
40
Initial &
Secondary
Breakdown
41
Breakdown Types
1. Initial Breakdown: The stock breaks below support after a
Quality Consolidation.
2. First Retracement: The stock retraces towards the Initial
Breakdown point. This is the “safest” entry point, provided it
retraces in a compelling manner.
3. Secondary Breakdown: The stock moves below its Initial
Breakdown point, after consolidating at the prior low.
MR
MS 22
11
33
42
Breakdown Types
Initial PBD 1. Initial Breakdown
2. First Retracement
2 3. Secondary Breakdown
2
1&3
3
4343
Gap Below Prior Low
ISRG – 5-Min.
stop
Short 5-
Min. low
Gap under
Add Secondary +WRB
PBD. Why?
4444
30-Min. Low on Upgrade and Bear Gap
Daily Morgan Stanley: Punk Ziegal
analyst on CNBC says stock
should be bought aggressively
here; those selling making mistake
15-Min.
Gaps under
much support
Stop
loss
Short Initial
PBD at d20ma
20MA
B D I
F
K
A
C
E
G
H
J
L
QUIZ: Identify the type and M
quality of each marked trade.
49
PBO/PBD From
Wide Range Bars
WRB After Low Volatility
If sloppy consolidation,
wait for WRB that closes
outside the consolidation
Stop Loss
51
Bullish +WRB Out of Base
Daily 15-Min.
Hourly +WRB
PBO
52
PBD From –WRB
Bearish, tight consolidation
at bottom of –WRB
Short Initial PBD; leaves
overhead congestion
Short PBD
54
Risk of Buying Before +WRB Completed
At A, the bulls were Unhappy bulls
confident while the bar was
being formed
How would the bulls feel if
the bar closed like B?
A B
+WRB becomes
bearish TT at bar’s close
Short under –
WRB/engulfing
55
PBO/PBD From Base Against Trend
Stop Loss
Stop Loss
56
Bullish +WRB Out of Base
Indecision
settled. Why?
20MA
QUIZ: Could
you buy the
Stop under afternoon PBO?
+WRB 58
PBO After +WRB Through Resistance
Stop
Bullish gap loss
after -Trap
59
PBD From Bearish Consolidation
20MA
-WRB under
support; short PBD
QUIZ: Where is
stop and target?
60
Breakdown After -WRB
Daily
Daily 15-Min.
Daily
Daily Daily 60-Min.
20MA
Stop Loss (inside bar’s
high made 2x top)
60-Min.
20MA
60-Min.
6262
+WRB PBO
Daily 15-Min.
20MA
+123
+WRB from
PBS on MS
20MA
6363
Breakout and
Breakdown
From Gaps
Initial PBO From Pro Gap
6767
Gap Over -WRB
Daily Bullish pattern?
First target is
prior high Distance to next
Resistance?
Gap from
20MA consolidation?
Gap too
Gap over excessive?
bearish bar
Bullish intra-day
pattern?
68
Gap Over Resistance, No Congestion
Daily
KLIC - Daily 5-Min.
5-Min. Add PBO
CNTF -TARO - Daily
DailyGap over 5-Min. 5-Min.
resistance
Gap over
resistance G
A
P
Shorted bounce,
stop high
Bear Pro Gap, Are Gap
Buy 5-
shallow bounce Questions
Min. high
satisfied?
Buy 5-Min. PBS
Stop
Buy 5-Min. PBS
PBO from Pro Gap
Daily
Daily
5-Min. Daily Daily
Weekly
70
PBO Multiple Time Frame
Daily
5-Min.
Daily Pro Gap over resistance
Monthly
Daily
Weekly Weekly
PBO after
+WRB
Weekly
from base
71
Pro Gap Examples
Daily
Gap over bullish Daily
consolidation
Bullish gap
after -Trap
7272
Pro Gap PBO to New Uptrend
Daily 5-Min.
Add
PBO
Pro Gap
from base
Buy pull
back
73
Pro Gap Over Prior High
Daily 5-Min.
Gap over
consolidation Tight bullish
consolidation; buy
high, stop low
Bullish gap
after -Trap
7474
PBD and PBO
Daily
Target Area
Buy First
Retracement
Gap over
resistance
Short
+WRB +WRB
PBD
75
Bearish Gap PBD
Daily Weekly
20MA 20MA
Failed CBS/BT/+COG on MS
during doldrums,
Buy LDBO
and into r20ma
60-Min. 30-Min.
Bullish hourly
consolidation
15-Min.
20MA
81
Late Day Breakout
Daily 15-Min. Buy PBO, add
NIHD 15-Min.
over +WRB
Significance?
20MA
Are LDBO
Questions
satisfied?
15-Min.
Bullish Volume
82
LDBO After Gap Into -WRB
Daily 15-Min.
20MA
20MA
20MA
Buy LDBO
15-Min. Buy LDBO, stop
Stop under base
20MA
20MA 20MA
15-Min. 15-Min. 84
Bullish Gap Into -WRB
Daily 5-Min.
Buy 30-
Min. high
Bullish gap
after 15 Add LDBO
PRX - Hourly
red bars
Gap
Daily (at close)
15-Min.
8585
Late Day Breakout Examples
20MA
20MA
20MA
20MA
20MA
Late Day Breakout Examples
(B)
(A)
20MA
20MA
(C) (D)
20MA
20MA
87
Above Average Up/Down Volume
15-Min. Volume shows the
magnitude of interest
QUIZ: IdentifyQUIZ:
entry, stop,
Rank
QUIZ: Rank
and target on each
eachLDBO.
PBO
each PBO
Late Day Breakdown
60-Min. LDBD Criteria
Down on the day
Basing at low
Stop
Consolidation
near low into
Target = Demand d20ma
Increased volume on
breakdown
Bearish consolidation at Short
low of –WRB; short PBD breakdown, stop
over base
90
Late Day Breakdown Examples
(A) (B)
20MA
20MA
(C) (D)
20MA
20MA
91
Finding LDBD Using Pristine ESP™
Whether
20MA
Bearish
+WRB Gapafter
close
under
gap, no Support
BT 9595
Bearish Gap That Bullies Resistance
Daily 15-Min.
20MA
Buy LDBO
20MA
Hourly
2
3
20MA
3
1. Bullish Gap
2. 100% Gap Fill in first 30-Min.
3. Short PBD (or other bearish
entry) on smaller time frame, if
97
no congestion to left
Using Pristine ESP™ to Find Candidates