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Disclaimer
It should not be assumed that the methods, techniques, or indicators presented in this book will be profitable or that they
will not result in losses. Past results are not necessarily indicative of future results. Examples in this book 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 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. 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 1994-2002 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
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Table of Contents
Introduction
Trading w/ the 20MA
Trading the 4 Different Stages
Pristine Trendline Techniques
Pristine Method
Trading the PBS & PSS
Trading the CBS & CSS
Trading the PBZ & PSZ
Trading the PBO& PBD
The Exams
Pristine Quizzes
Pristine Trading Exercises
Pristine Trading Exams
Pristine ESP
Product Review
Pristine ESP: The Climactics
MasterTrader Pro
Pristine ESP & MT Combined
Introduction
Up Trend Formula
Rising 20ma (r20ma) +
Rising 40ma (r40ma) +
r20ma > r40ma +
Relatively even space in between
Nice space
r20ma
r40ma
Up Trend Formula
Rising 20ma (r20ma) +
Rising 40ma (r40ma) +
r20ma > r40ma +
Relatively even space in between
r20ma
r40ma
Breakout
Buy
RLs
PBS
Breakout
Buy
PBS
r20ma
r40ma
RLs
d20ma
d40ma
d20ma
r20ma
r40ma
r20ma
r40ma
Foundation
The Four
Different Stages
Of
The Stock Cycle
Stage 2
PBS
Breakdown
Pristine Bear
Mortgage Play
Stage 4
PBS
Narrow MAs
Stage 4
Stage 2
Breakdown
20ma
40ma
Breakdown
Stage 2
d20ma
d40ma
Stage 4
Stage 2
r20ma
Stage 1
r40ma
Stage 4
Stage 3
R&F = Retest & Failure
Stage 2
Whippy MAs
r20ma
r40ma
= Pristine Trading Opportunities
Stage 4
Stage 3
PBS
PBZ
PSS
B/D
Stage 4
Stage 3
Stage 2
Breakdown
Pristine Tip:
70% of all breakouts fail, resulting in many
peek-a-boo attempts. When bullish bar
breakouts fail to follow through on the very
next bar, a major reversal is usually at hand.
PSS
Stage 4
50%
CBS
Breakdown
Stage 2
r20ma
r40ma
Stage 4
Note how the moving averages tell the story of the stages
Stage 4
Stage 2
Wavy MAs
20ma
40ma
Ending Stage 4
Stage 3
Breakout
Breakdown
Stage 2
PSS
Stage 4
Pristine Tip: The CBS usually ends (finalizes) Stage 4
CBS
d20ma
r40ma
Stage 2
r20ma
Stage 1
r40ma
Stage 4
Volume Ends
Move
Stage 4
Stage 2
Stage 1
Transitional Phase B
R&F
Stage 2
1
Point 1
Point 2
Breakdown
Transitional Phase B
Stage 2
Buy, but dont look
for a New High
Point 1
Point 2
Breakdown
Stage 4
1)
2)
3)
4)
5)
1)
2)
3)
4)
5)
Transitional Phase D
2
Trading The
Pristine Buy & Sell
Set-ups
Trading Tip: The Pristine Trained Trader (PTT) uses the 60-minute
chart to find Swing, Guerilla & some Day trading opportunities.
PBS
PBO
r40ma
-Trap
200ma
CSS
200ma
PBS
PBS @ MPS
r20ma
r20ma
200ma
PSS
PBS
PBS
r20ma
Stage 4
200ma
Stage 1
d40ma
d20ma
Bear COG
1)
2)
3)
4)
r20ma
r200ma
Stock in Uptrend
Rising 20ma
Rising 40ma
Rising 20ma < 40ma
OBV rising (not shown)
ADX above 25 (not shown)
Stock in Downtrend
Declining 20ma
Declining 40ma
Declining 20ma < 40ma
OBV declining (not shown)
ADX above 25 (not shown)
d40ma
Follow Action Steps: 9) Enter; 10) Stop; 11) Target; 12) Manage
The Pristine
Climactic Buy &
Sell Set-ups
BT
PSS
Note: The CBS will often deliver a playable
PSS a week or so later. Therefore, CBSs
represent dual profit making opportunities.
But dont expect a new low on the decline!
The same applies in reverse.
5 Red
CBS
PSS
5 Red Bars
Big Volume
50%
CBS
r20ma
5+ Red Bars
r40ma
CBS
Marking it Up
Major Resistance
PSS/R&F
Failed PSS
Major Support
PBS
PSS w/ Doji
In the PSZ
Trading The
Pristine Buy & Sell
Zones
r20ma
r40ma
d20ma
CBS
Stage 2
20ma
40ma
Stage 4
PFGC forms a:
PSS; with a -COG; and a deadly Doji; in the PSZ;
after a 40/60%; on the 1st pullback of a breakdown.
See Circle for items listed above
Trading Breakouts
The Pristine
Breakout Method
1)
2)
3)
Stage 1
Buy Breakout
Stop
Big Volume
Chart Courtesy of Mastertrader.com
B/O
PBS
Breakout Buy
r20ma
r40ma
Stop
Big Volume
Breakout Buy
Stop
Drop in Volume
Buy
d20ma
d40ma
Breakout
r20ma
200ma
Pristine Combos
Trend is down
Stop
Pristine Tip
The PTT will usually play a PBD
from a narrow base very aggressively.
PSS w/ TT
at mPR
PBD
50%
Ant. CBS
Transitional Phase A
Whats next for IBM? Up move or Down move?
Answer:
The next move should be up
3
1
Trading Tests
Pristine Trading
Exams
4
5
7
PBS
1
2
2
6
3
2 Best PBSs
1)
2)
3)
Instructions
Circle and name the last 2 Guerrilla trades in this chart
Which Pristine Entry Method you use for trade 2
Point out the area you look to exit each trade
2 Bear 20/20
Exit
Exit
Gap n Snap
1
1)
2)
3)
PBS
2
CBS
1
PBS
d20ma
d40ma
Questions
1)1) Find
Findthe
the33best
besttrading
tradingsignals
signals
2)2) Which
Whichtrade
tradecan
canbe
beanticipated?
anticipated?
3)3) Why
Whycan
canititbe
beanticipated?
anticipated?
d20ma
d40ma
2 PSS
Answers
1: CBS; PSS; PBS
2: Trade 2 (CBS) can be anticipated
3: The CBSs +COG closed near the high
1 CBS
Big Volume
3 PBS
Answers
1: Four Long Trades
2: 1-CBS; 2-PBS; 3-PBS; 4-PBS
3: Anticipate trade 4, the PBS
4: Red circles and numbers
2
1
4
3
2
1
A
2
1
r20ma
r40ma
PBS at MPS
A = Skeptical PBS
Pristine Products
Pristine Product
Review
Alerts
Merlin:
The Pristine Trained Wizard
Mastertrader.com
Comprehensive
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Real-time Charts
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