dan gibby - mastering breakouts and breakdowns
TRANSCRIPT
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Mastering BreakoutsMastering Breakouts
and Breakdownsand Breakdowns
Dan GibbyDan Gibby
Lead Moderator, Pristine.com Advanced Stocks and DerivativesLead Moderator, Pristine.com Advanced Stocks and DerivativesTrading Room, and Senior Pristine Certified TrainerTrading Room, and Senior Pristine Certified Trainer
Copyright 2006, Pristine Capital Holdings, Inc.Copyright 2006, Pristine Capital Holdings, Inc.
Pristine.com PresentsPristine.com Presents
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DisclaimerDisclaimer
It should not be assumed that the methods, techniques, or indicators presented in this book and 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 ACTUALTRADING. 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. 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.
Copyright 1994-2006 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.
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Table of ContentsTable of Contents
IntroductionIntroduction
The Pristine Method
Trading Style and Time Frames
Trading Plan
Basics and FoundationBasics and Foundation
Initial Pristine Breakout/Down
PBO/PBD from Wide Range Bars
PBO/PBD from Gaps
Retracement After Breakout/Down
Secondary Breakout/Down
Late Day Breakout/Down
Gaps Negated in Morning
Fluid moves vs. Congestion
Wide Range Bars (WRB)
Volume
Quality Consolidation
Pristine ESP
Concluding ThoughtsConcluding Thoughts
Breakout/down StrategiesBreakout/down Strategies
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What This Seminar isNot About
4
The intricacies of The Pristine Method (TPM)
Tools, tactics, or setups taught in TPM Parts 1-2
Trading Plan and Managing Your Trading Business
Risk management, proper share size, psychological aspects
Futures, options, commodities, and derivatives
Classical, technical, macro, or fundamental analysis
Level II analysis or direct access trading
Other topics included at Pristine Trading University
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Introduction toIntroduction toThe PristineThe Pristine
MethodMethod
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Who is Pristine?Who is Pristine?
Established in 1994 by Oliver Velez and Greg Capra,
Pristine provides insight, intelligence and education for
the self-directed trader
Much more than stock tips and buy-sell-hold advice, The
Pristine Method guides both new and experienced
traders to a more intuitive understanding of the markets
The Pristine educational system helps you understand the
markets and prepare you to trade objectively
Offer worldwide educational seminars, DVDs, trading
software, real-time trading rooms, and trading newsletters6
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ONSITE SEMINARS
REAL TIME TRADING ROOMS
DVD
The BOOK
ONLINESEMINARS
NEWSLETTERS
COACHING
Eliminating The Barriers To Entry!
Pristine Capital HoldingsPristine Capital Holdings
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RANKED # 1RANKED # 1 in Trading Education
by: FEATURED by:
Pristine Public RecognitionPristine Public Recognition
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Traits of a Successful TraderTraits of a Successful Trader
Trading is a Business treat it like one!
Choose a definedMethod
Choose a time frame in which to trade from
Choose which stocks and/or Futures you will trade
Money Management
Discipline and Patience to followyour Method 9
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Pristine Successful Trader MatrixPristine Successful Trader Matrix
COMPELLING TECHNICAL PATTERNTPM 1-2
TRADING PLAN
MANAGE IN BETWEEN
ENTER AND SET PROTECTIVE STOP
Wealth/Income
Hardware/Software
Setups
Instruments
Listed/OTC
Reward-Risk
Share Size and #
Market Internals
Management Rules
Pivots For Exits
Winning/losing
Trade Review
Continuing Education
Demon elimination
Discipline/Patience
NO SETUP,
NO TRADE!!
StopTarget10
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Trade Types
The Pristine Method teaches specific Compelling Patterns
These should be clearly highlighted in your Trading Plan
PBS/PSS
CBS/CSS
Guerrilla Trades
Breakouts and Breakdowns
W and M Formations
Pinch Play
Failed Patterns
Bearish Gap that Bullies11
PBS
+COG
CBS
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Breakout andBreakout andBreakdownBreakdownFoundationFoundation
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Introductory ConceptsIntroductory Concepts
Bases and consolidations
Types of breakouts and
breakdowns
Quality of setups
Fluid versus choppy moves
When to trade with or against
the intended move
Using Pristine ESP
Congestion
areas
Fluid move
leaves little
congestion
Concept Review
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Price CongestionPrice Congestion
Prices move between areas of
support and resistance
Congestion areas have
overlapping bars, tails, and
gaps
Fluid moves have consecutive
bar moves with relatively equal
openings and closings
Prices retrace easier without
congestion to the left
Congestion
areas
Fluid move
leaves little
congestion
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15
IntraIntra--Day Pattern Into CloseDay Pattern Into Close
Hourly EOD Base
Opening price here
has higher odds of
retracementOpening Gap above
Base has high odds
of moving up
15-Min.15-Min.
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Volume AnalysisVolume Analysis
Volume = Money and represents commitment or lack thereof
Price tells us what a stock is doing; Volume tells ushow
> 500,000 average 30-day volume
Volume increases should occur in the
direction of the PBO/PBD; reduced
Volume on Retracement
Volume increase without price moving is a warning
Volume is secondary to price . Price is King! 16
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Proper Base or Consolidation
Consolidation is aresting periodin an existing trend
Want controlled, tight consolidation, with few to no
overlapping bars or significant gaps and tails
Base of at least 8 - 10 bars
Provides the base of support for breakout, or base of
resistance if break down
Low risk, high-odds strategy using The Pristine Method
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Quality ConsolidationQuality Consolidation
Tight arrangement of bars
with few tails, overlapping
bars, and gaps 18
20MA
20MA
20MA
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Improper Basing/ConsolidationImproper Basing/Consolidation
Poor consolidation: tails,
overlapping bars, and gaps 19
20MA 20MA
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Pristine ESPPristine ESP
Pristine ESP willsearch PBO/PBD in
many time frames
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Breakouts and Breakdowns
21
Can be traded on any time frame and in any trend
Every trade needs a compelling pattern and little congestion
above (for longs) or below (for shorts)
Increased Volume a plus
Not all New High/Lows are Buyable/Shortable
Apply other concepts from The Pristine Method
Pristine ESP scans to find tradable candidates
General Comments
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Determining Targets and Stops
22
Need generous Reward (price target) to Risk (stop loss)
Generally, targets will be:
Resistance/Support for PBO/PBD
Take after a multi-bar move
At major moving average, if corresponds with congestion
Stops are always placed slightly below the support area for
longs, or slightly over the resistance area for shorts
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Initial andInitial andSecondarySecondaryBreakoutBreakout
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PBO to New Uptrend
24
The Pristine Method teaches various ways to trade
PBO/PBD from a sideways trend to new trend. We will cover:
Initial PBO
First Retracement
Secondary Breakout
Wide Range Bar (WRB) out of a base
Other bullish/bearish Retests
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Breakout Types
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11
22
33
1.1. Initial BreakoutInitial Breakout:: The stock breaks above resistance after aQuality Consolidation.
2.2. First RetracementFirst Retracement:: The stock retraces towards the Initial
Breakout point, and reverses on support. This is thesafest entry
point, provided it retraces in a compelling manner.
3.3. Secondary BreakoutSecondary Breakout:: The stock moves above the Initial Breakout
(prior high), after consolidating at the prior high.
11
22
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Initial bullish move,
bullish consolidation inupper 1/3
BuyPBO (Vol. a
plus)
Proper Initial Pristine BreakoutProper Initial Pristine Breakout
Stop LossStop
26
20MA
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Improper Pristine Breakout PlayImproper Pristine Breakout Play
0
40
50
60
100
Retracement analysis is
used to objectively measure
the Strength or Weakness of
a move counter to the
prevailing trend
Some suggest buying over
a prior high, irrespective of
the Retracement level
We sell into extended
rallies over prior highs
Incorrect PBO: Extended
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Secondary PBO/PBD
We sell into that
band wagon
mentality of buyingnew highs if the
stock is extended
Secondary
PBO/PBD are
tradable if theyhave consolidated
over time at the
prior high28
0
40
50
60
100
Correct PBO: Consolidated at prior high
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Buyable Secondary PBOBuyable Secondary PBO
These were both
recommended as breakout
longs one day in a
competitors newsletter
Not a Pristine PBO since
very extended to make new
highs (also 5-day MA of
TRIN a CBS under prior low)
Is this Secondary
PBO buyable? Why?
PBO
+WRB after
failed PBD
1.1. Initial BreakoutInitial Breakout
2.2. First RetracementFirst Retracement
3.3. Secondary BreakoutSecondary Breakout
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2211
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Breakout Types
1.1. Initial BreakoutInitial Breakout
2.2. First RetracementFirst Retracement
3.3. Secondary BreakoutSecondary Breakout
11
22
2233
22
33
33
20MA
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Stops on Breakouts
This is lowrisk entry
Trail stop after
two bars
Buy First Retracement
on support
Trail stop after
two bars
Buy pull
back20MA
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Poor Pristine BreakoutsPoor Pristine Breakouts
Some traders wouldbuy these as breakouts
What has to happen to
make them buyable?
Would you be a buyer or
seller into strength here?
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Buy
PBO?
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PBO From BasePBO From Base
The stock builds
support over time
+WRB to the top of
the base
BuyPBO over+WRB out of base
Manage in between
What does the
consolidation after
the PBO imply?
Buy over +WRB
through resistance
Stop Loss
Could you add
on this PBO?
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PBO on PrePBO on Pre--Market Economic NumberMarket Economic Number
Futures had bullish PBO at 8:30 Economic Number
S&P Futures 5-Min. Nasdaq Futures 5-Min.
QUIZ: Was the InitialPBO buyable? First
Retracement? Second
PBO?
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Pristine Breakout AnalysisPristine Breakout Analysis
Correct: Gap from
consolidation
Incorrect:
Extended
Correct: Pull back
into +WRB
Incorrect: Extended Factors
Extended
before PBO?
Consolidate in
a tight range
before PBO?
Congestion to
the left?
Tails,
overlapping
bars, and gaps?35
Incorrect: Deep
retracement
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PBO and Retracement Quiz
36
QUIZ: Name the type of Setup
at each letter and discuss
whether or not buyable.
C
F
EDB
GH
A 36
20MA
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PBO to New Uptrend
Pull back to gap fill
from 2x bottom; buyover prior bars high
Buy retracement
since extended
Aggressive Pristine
entry, stop under base
PBO after
2x bottom
Stop
buy
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Patterns on Multiple Time FramesPatterns on Multiple Time Frames
GOOG - Daily
Daily Monthly
Weekly
Monthly
Reverse H&S
Failed
breakdown
38H
SS
PBO
PBO
PBO
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PBO/PBD Stock ScanningPBO/PBD Stock Scanning
Pristine ESP Scans
39
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 Days 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
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40
Pristine ESPPristine ESP 3030--Min. Gap BuyMin. 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
Pro Gap and +WRB,
consolidation at high
Triggered
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Initial &Initial &SecondarySecondary
BreakdownBreakdown41
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Breakdown Types
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1.1. Initial BreakdownInitial Breakdown:: The stock breaks below support after aQuality Consolidation.
2.2. First RetracementFirst Retracement:: The stock retraces towards the Initial
Breakdown point. This is the safest entry point, provided itretraces in a compelling manner.
3.3. Secondary BreakdownSecondary Breakdown:: The stock moves below its InitialBreakdown point, after consolidating at the prior low.
11
22
33
MRMR
MSMS
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Breakdown Types
1.1. Initial BreakdownInitial Breakdown
2.2. First RetracementFirst Retracement
3.3. Secondary BreakdownSecondary Breakdown
Initial PBD
1 & 31 & 322
22
11
33
QUIZ: Which Secondary
Breakdowns are quality?
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Gap Below Prior LowGap Below Prior Low
Daily
ISRG 5-Min.
Gap under
+WRB
Short 5-
Min. low
Gap under
support
Add Secondary
PBD. Why?
Short first
retracement
stop
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30-Min. Low on Upgrade and Bear Gap
45
Morgan Stanley: Punk Ziegal
analyst on CNBC says stock
should be bought aggressively
here; those selling making mistake
5-Min.Short First Retracement
or 30-Min. low
Daily
15-Min.
Bear Gap, deep
into Support
Gaps undermuch support
Stop
loss
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Initial and Secondary PBD
46
Relentlessselling with
weak bounces;
short PBD and
Retracements
Gap and
+WRB
Buy FirstRetracement
Short Initial
PBD at d20ma
Short
Retracement
20MA
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Bear Flag BreakdownBear Flag Breakdown
Measurement met at priormonthly major support
Monthly
Implied Measurement
Met Near Support
Price bounded by
two parallel trend
lines, against the
prevailing trend
Volume typically
lighter in flag
Short below
trend line
Stop over priorhigh
Implied
measurement47
H d d Sh ld
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48
Head and ShouldersHead and Shoulders
The left and right
shoulders are
opposite the higher
headin both
distance and time
Short PPD of the
neckline on
expanding volume
Implied
measurement
S
Short PBD
Stop
Loss
Target Area
H
S
P i i B kd Q iP i ti B kd Q i
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Pristine Breakdown QuizPristine Breakdown Quiz
QUIZ: Identify the type and
quality of each marked trade.
E
ID
C
B
A
H
F
G
K
JL
M
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PBO/PBD FromPBO/PBD From
Wide Range BarsWide Range Bars
WRB Aft L V l tilitWRB Aft L V l tilit
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WRB After Low VolatilityWRB After Low Volatility
Many PBO/PBD fail
If sloppy consolidation,
wait for WRB that closes
outside the consolidation
The WRB shows
commitment and has highodds of follow through if
no congestion to left
PBD
PBO
Stop Loss
51
B lli h WRB O t f BB llish +WRB O t of Base
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Bullish +WRB Out of BaseBullish +WRB Out of Base
Hourly
Add pull back
in +WRB
+WRB
PBO
52
15-Min.
+WRB PBO
with r20/40ma
Daily
PBD FromPBD From WRBWRB
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PBD FromPBD From WRBWRB
Short -WRB PBD, stop
over consolidation
Bearish, tight consolidation
at bottom of WRB
WRB/Engulfing
after weak bounce
Short Initial PBD; leavesoverhead congestion
Add retracement
53
WRB PBDWRB PBD
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--WRB PBDWRB PBD
What do these tails tell us,
particularly after the prior
+WRB from base?
Bearish action afterfailed buy setup
Short PBD
What does thisconsolidation imply?
54
Ri k f B i B f WRB C l t d
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At A, the bulls were
confident while the bar was
being formed
How would the bulls feel if
the bar closed like B?
AB
+WRB becomes
bearish TT at bars close
Short under
WRB/engulfing
Risk of Buying Before +WRB Completed
55
Unhappy bulls
PBO/PBD From Base Against TrendPBO/PBD From Base Against Trend
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PBO/PBD From Base Against TrendPBO/PBD From Base Against Trend
Stop Loss
Stop Loss
Wait for +WRB to
close above base
56
Wait for -WRB to
close below base
Bullish +WRB Out of BaseBullish +WRB Out of Base
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Bullish +WRB Out of BaseBullish +WRB Out of Base
Buy Initial PBO;
add over +WRBfrom base
Sell on
Novice Gap
57
20MA
+WRB closed
outside the base
No congestion
above, so odds ofcontinuation high
Trail stop under a
prior bars low or
when far from 20ma
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PBO After +WRB Through ResistancePBO After +WRB Through Resistance
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PBO After +WRB Through ResistancePBO After +WRB Through Resistance
Bullish gap
after -Trap
+WRB through 3 prior
highs and trend line
Stop
loss
59
PBD From Bearish ConsolidationPBD From Bearish Consolidation
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PBD From Bearish ConsolidationPBD From Bearish Consolidation
-WRB undersupport; short PBD
QUIZ: Where is
stop and target? 60
20MA
Breakdown AfterBreakdown After --WRBWRB
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Breakdown AfterBreakdown After WRBWRB
15-Min.DailyDaily Daily
60-Min.
DailyDaily
60-Min.
60-Min.
Short under support;
no support below!Short under Support/-WRB
Stop Loss (inside bars
high made 2x top)
61
20MA
20MA
Breakdowns and ManagementBreakdowns and Management
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Buy setup failure
-WRB shows
bears in control
Breakdowns and Managementea dow s a d a age e
Short under WRB after
close under support
First Retracement shortable
62
+WRB PBO
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+WRB fromPBS on MS
+123
15-Min.Daily
20MA
20MA
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Breakout andBreakout andBreakdownBreakdownFrom GapsFrom Gaps
Initial PBO From Pro GapInitial PBO From Pro Gap
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pp
Initial bullish move,
bullish consolidation
in upper 1/3, thenProGap, has high odds
Conflict resolved
Stop Loss
Pro Gap - one that ignites
a new move up or down
Novice Gap one in the
same direction of an already
extended move, andtypically ends the move
Continuation Gap one
that continues a move,
typically at half-way points
65
Gap Questions Before TradeGap Questions Before Trade
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Does the Gap create a compelling pattern?
Where is the next area ofSupport or Resistance?
Did it Gap from a consolidation or from an already extended move?
Is the Gap too excessive to invalidate a favorable Reward-Risk?
Does it set up a compelling pattern intra-day after the Gap?
Is the Reward-Risk at least 3:1?
If so, enter and manage in between per your Trading Plan
Gap Under Bearish ConsolidationGap Under Bearish Consolidation
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pp
MORE EXAMPLESDaily
Pro Gap, no bounce,
short 5-Min. low
Stop over
bearish
consolidation
67
Gap OverGap Over --WRBWRB
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Bullish pattern?
Distance to next
Resistance?
Gap from
consolidation?
Gap too
excessive?
Bullish intra-day
pattern?
20MA
Daily
Gap overbearish bar
68
First target is
prior high
Gap Over Resistance, No CongestionGap Over Resistance, No Congestion
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5-Min.CNTF - DailyTARO - Daily 5-Min.
Bear Pro Gap,
shallow bounce
Shorted bounce,
stop high
G
A
P
5-Min.KLIC - Daily
Gap over
resistance
Buy 5-Min. PBSBuy 5-Min. PBS
Buy 5-
Min. high
5-Min.Gap over
resistance
Daily Add PBO
Are Gap
Questions
satisfied? Stop
PBO from Pro GapPBO from Pro Gap
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Daily
Weekly
Daily
Daily5-Min. DailyDaily
Pro Gap over
WRB and resistance
Buy bullish intra-
day pull back
Pro Gap
Buy 5-Min. high
70
PBO Multiple Time FramePBO Multiple Time Frame
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71/101
Daily
Weekly
Daily
5-Min. Pro Gap over resistance
Weekly
Daily
Weekly
Monthly
71
PBO after
+WRB
from base
Pro Gap ExamplesPro Gap Examples
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72/101
72
Gap over bullish
consolidation
Gaps out of multi-
week consolidation
Bullish gap
after -Trap
72
Daily Daily
Pro Gap PBO to New Uptrend
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73/101
Pro Gap
from base
Buy pullback
Daily 5-Min.
73
Add
PBO
Pro Gap Over Prior HighPro Gap Over Prior High
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
74/101
74
Bullish gap
after -Trap
Gap overconsolidation
Daily 5-Min.
Tight bullish
consolidation; buy
high, stop low
74
PBD and PBO
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75/101
75
Gap over
resistance
+WRB
Target Area
Short
PBD
Buy First
Retracement
+WRB
75
Daily
Bearish Gap PBDBearish Gap PBD
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76/101
Daily
TIP: A gap just under a
+WRB with no support
is powerful!
Failed CBS/BT/+COG on MS
20MA
Weekly
Failed buy setup atprior low, no support
20MA
76
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
77/101
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
78/101
Late DayLate DayBreakouts andBreakouts andBreakdownsBreakdowns
78
Late Day Breakout (LDBO)
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79/101
Setup, Entry and Exit Guidelines
8 - 10 bar base or consolidation in a tight range
In the upper 1/3 of the preceding bullish move
Above the 20MA on intra-day charts
No significant resistance/congestion to the left
Up on the day, and over the prior bars close
Breakout over resistance, on Vol., after 2:15 ET
Buy over resistance, with stop under base
Sell under reversal bar; other far from 20MA, or
congestion 79
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80/101
Late Day Breakout
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81/101
15-Min.
Daily Daily 15-Min.
30-Min.
Daily 15-Min.
60-Min.
Buy LDBO
Up on day and
over prior close
Tight bullish
base near high,during doldrums,
and into r20ma
Bullish hourly
consolidation
81
20MA
20MA
20MA
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82/101
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
83/101
Late Day Breakouts
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84/101
15-Min.
Daily Daily
15-Min.
Buy LDBO, stop
under base
Bullish
+WRB PBO
PBO
84
20MA
20MA
20MA
20MA
15-Min.
Buy LDBO
Stop
20MA
Bullish Gap IntoBullish Gap Into --WRBWRB
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
85/101
85
PRX - Hourly
Bullish gap
after 15red bars
5-Min.Daily
Daily (at close)15-Min.
Add LDBO
Buy 30-
Min. high
85
Gap
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86/101
Late Day Breakout Examples
(B)
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
87/101
(A)(B)
(C) (D)
87
20MA
20MA
20MA
20MA
Above Average Up/Down VolumeAbove Average Up/Down Volume
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
88/101
88
Volume shows the
magnitude of interest
Unusually highup/down volume in the
opening Reversal
Period is often
associated with Proup/down moves
Keep Pristine ESPalert box open and
evaluate each issue on
multiple time frames
15-Min.
+WRB out ofbase on Vol.
LDBO Quiz
Whether15 Mi
D il ENG
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89/101
Whether15-Min.
QUIZ: Rank
each PBO
A
B
C
D
Daily - ENG
QUIZ: Rank
each PBO
15-Min.
D
Daily - ENG
Daily
QUIZ: Identify entry, stop,
and target on each LDBO.
15-Min.
B
C
D
E
A20MA
PBO
F
Late Day BreakdownLate Day Breakdown
LDBD C it i
60 Mi
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90/101
LDBD Criteria
Target = Demand
Increased volume onbreakdown
Down on the day
Below priordays close
Basing at low
Consolidation
near low into
d20ma
Short
breakdown, stop
over base90
60-Min.
Stop
20MA
Bearish consolidation at
low of WRB; short PBD
Late Day Breakdown Examples
(A) (B)
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91/101
(A) (B)
20MA
20MA
(D)20MA
20MA
(C)
91
Whether
Finding LDBD Using Pristine ESPFinding LDBD Using Pristine ESP
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
92/101
Whether
UnderMicro Trader
Scan:
15-Min. Basing
Gap Down and
Weak
Last Trade atLow
Stocks Near
Lower 2% Daily
Range92
20MA
20MA
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93/101
LDBO/LDBDLDBO/LDBDFrom MorningFrom Morning
Gaps NegatedGaps Negated
Bearish Gaps That Bully Resistance
Oversold stock with little congestion to the left
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94/101
Oversold stock with little congestion to the left
The stock gaps down significantly and then rallies strong at
the open, on Increased Volume (Vol.)
Bar closes with a +WRB on the 30-Min. chart, at or through
intra-day resistance
The +WRB should have a very small, if any, bottoming tail
Look for a bullish intra-day entry, and manage in between
Reverse applies for bullish gaps negated in morning94
Bearish Gap That Bullies ResistanceBearish Gap That Bullies Resistance
15-MinDaily
5 MiD il
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95/101
Hourly
15 Min.Daily
+WRB close after
gap, no BT
Bullish basing
through doldrums;
buy LDBO
Extended daily and Gap
95
20MA
20MA
20MA
Retracement
buyable
Bearish Gap
under Support
5-Min.Daily
G
A
P
Add PBO
95
Bearish Gap That Bullies ResistanceBearish Gap That Bullies Resistance
15-Min.Daily
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
96/101
Hourly
15 Min.Daily
+WRB close after
gap, no BT
Extended daily and Gap
96
20MA
20MA
20MA
Buy LDBO
Bullish Gap That BuriesBullish Gap That Buries
11 1130-Min.30-Min.
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
97/101
1. Bullish Gap
2. 100% Gap Fill in first 30-Min.
3. Short PBD (or other bearish
entry) on smaller time frame, if
no congestion to left
11 11
22
2233
33
97
20MA
Using Pristine ESP to Find Candidates
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
98/101
98
Go to Scans; Micro Trader; Gap Down and Strong (for
longs), and Gap Up and Weak (for shorts)
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
99/101
ConcludingConcluding
ThoughtsThoughts
Pristine Services and EducationPristine Services and Education
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
100/101
Thank You For Joining Us!Thank You For Joining Us!
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8/6/2019 Dan Gibby - Mastering Breakouts and Breakdowns
101/101
At this point, you have the information to build on. Its up
to you to work with the material and now make it yours.
There are no secrets or proprietary indicators to makingmoney in the markets. Defining an opportunity, where the
odds are in your favor, then having the discipline to
follow your trading and money management rules is allthat you can do. Your job is to objectively monitor, then
change as the market suggests you should.
In closing, we at Pristine wish you great success!
101