Pristine Patterns 1.01a

Pristine Method
Pattern Scans
by
Greg Capra
For MetaStock 10.1 (and higher)
User's Manual
Version 1.0
All Rights Reserved

Copyright 2007
Equis International
90 South 400 West, Suite 620
Salt Lake City, UT 84101
Printed in the U.S.A.
Equis and MetaStock are registered trademarks of
Equis International.
Microsoft Windows, Microsoft Windows 95, 98, 2000,
XP, Vista, and Microsoft Explorer are trademarks of
Microsoft Corporation. All other product names or
services mentioned are trademarks or registered
trademarks of their respective owners.
This product is not a recommendation to buy or sell,

but rather a guideline to interpreting the specified
analysis methods. This information should only be used
by investors who are aware of the risk inherent in
securities trading.
Equis International, Greg Capra, and Pristine Capital
Holdings, Inc., accept no liability whatsoever for any loss
arising from any use of this product or its contents.

Table of Contents
Getting Started ....................................................... 3
Installing and Pristine Method Pattern Scans ............ 3
About Pristine Method Pattern Scans ................. 4
Understanding Pristine Method Pattern Scans .. 5
The Pristine Trend Indicator ....................................... 5
Guerrilla Setups ......................................................... 6
The Pristine Buy Setup ......................................... 7
The Pristine Sell Setup ........................................ 10
The Bear Trap Setup............................................ 13
The Bull Trap Setup ............................................. 15
The Bullish Mortgage Play .................................. 17
The Bearish Mortgage Play................................. 19
The Red Bar Ignored Play ................................... 21
The Green Bar Ignored Play ............................... 23
The Pristine Basing Setup .................................. 25
The Above Average Volume Setup .................... 27
The Bullish Changing of the Guard Setup ........ 30
The Bullish Bottoming Tail Setup ...................... 32
The Bearish Changing of the Guard Setup ....... 34
The Bearish Topping Tail Setup ......................... 36
The Climactic Buy Setup..................................... 38
Pristine Method Pattern Scans i

Table of Contents
The Climactic Sell Setup ..................................... 41

Using Pristine Method Pattern Scans using
The Explorer .................................................. 44
Understanding Pristine Method Pattern Scan
reports in The Explorer................................. 45
Using Expert Advisors with Pristine Method
Pattern Scans .................................................... 46
Understanding Expert Advisors with
Pristine Method Pattern Scans ........................ 47
About Pristine ...................................................... 48
About Greg Capra................................................ 49
ii Pristine Method Pattern Scans

Getting Started
Getting Started
Installing and Pristine Method Pattern Scans
To install the Pristine Method Pattern Scans:

1. Insert the Program CD into your drive. The setup
starts automatically.
Or, if the auto-run feature of Windows isn't enabled
on your system,
a. Click the Start button and choose Run.
b. Type "D:\SETUP.EXE" in the Open box and click
the OK button.
(Note that "D" represents the letter assigned to your
CD-ROM drive. If your drive is assigned a different
letter, use it instead of "D".)
2. Carefully follow the on-screen instructions.
To start using Technical Patterns the Pristine Way:

1. Run MetaStock.
The Pristine Method Pattern Scans plugin will be
available in The Explorer as well as in certain
experts and indicators.
Pristine Method Pattern Scans 3

Installing and Pristine Method Pattern Scans
About Pristine Method Pattern Scans

Pristine Method Pattern Scans is a collection of Pristine
Capital Managements favorite setups for technical trade
setups. It is designed to highlight and find these powerful
patterns in the market.
The following tools will be added to the MetaStock
program as Explorations, Expert Advisors, and
Templates:
PM Above Average Volume Setup
PM Bear Trap Setup
PM Bearish Changing of the Guard Setup
PM Bearish Green Bar Ignored Play
PM Bearish Mortgage Play
PM Bearish Topping Tail Setup
PM Bull Trap Setup
PM Bullish Bottoming Tail Setup
PM Bullish Changing of the Guard Setup
PM Bullish Mortgage Play
PM Bullish Red Bar Ignored Play
PM Climactic Buy Setup
PM Climactic Sell Setup
PM Pristine Basing Setup
PM Pristine Buy Setup
PM Pristine Sell Setup
In addition, the following Exploration will also be added

to your Exploration options:
PM Master Scan
4 Pristine Method Pattern Scans

Understanding Pristine Method Pattern Scans
Understanding Pristine Method Pattern

Scans
This section is designed to give you an overview of the
patterns used in Understanding Pristine Method Pattern
Scans. It outlines the basic concepts for the patterns and
how to trade them.
For more information on trading using the Pristine
Method (including all of the terms discussed) and
concepts such as setups, scanning, target setting, trade
management etc., go to: www.Pristine.com/seminars.
The Pristine Trend Indicator

At the bottom of each chart with a Pristine Expert
attached you will see the Pristine Trend Indicator.
Green denotes a bullish uptrend, making higher pivot
highs and higher pivot lows.
Yellow indicates a neutral sideways trend or that there
has been a retracement of some significance within the
trend.
Red denotes a bearish downtrend of lower pivot highs
and lower pivot lows.
In general for swing trading you want to be trading WITH
the trend. However, guerrilla patterns and reversals
entries can be used in all market environments.

Understanding Pristine Method Pattern Scans
Guerrilla Setups
Guerilla setups are also excellent signals for the intra-
day trader to focus on. Since they typically continue in
the direction of the signal for several days, intra-day
traders can take advantage that by entering on
retracements on the shorter time frame being used. This
is a favorite trading tactic used in the Pristine Method
Trading Room (PMTR) everyday. If you would like to see
how Pristine traders take advantage of Guerilla setups
intra-day go to www.pristine.com and sign up for a free
trial to the PMTR.

The Pristine Buy Setup

General
The Pristine Buy Setup is a trend-following swing
trading setup. It was created to enhance your ability to
buy pullbacks at specific points where odds are
favorable for a move back in the direction of the trend. It
can be used either to enter pullbacks in an uptrend or
pullbacks in a sideways trend. It generally will not trigger
a buy in a downtrend.
Requirements
The security had been in either an uptrend or sideways
trend on the daily chart. Those in uptrends are more
easily identified by a rising 20-period moving average
above the rising 40-period moving average. They will
also be reflected by the Pristine Trend Indicators green
crosshatching in the lower portion of the chart. Those in
somewhat of a sideways trend may have had the most
recent pivot low break below the prior pivot low. This is
evidenced by the Pristine Trend Indicators yellow
crosshatching denoting some caution as to the general
trend.
From there, the stock pulls back three to five daily bars
by making some combination of either lower highs or red
bars. The setup is an anticipatory one. When you see
this pattern, you can then set an alarm for either of the
following two conditions as a potential entry for the
following day.

Triggers
Condition1. The stock moves up and breaches the prior
days high. In this case you enter a long position with a
stop loss under the current days low or the prior days
low, whichever is lower (A general assessment as to the
risk reward of the two alternatives may be used to
determine which is preferable to you on a case-by-case
basis.)
Condition2. For those stocks whose prior days bar is a
wide range red bar, (or for those stocks which gap up
the following morning), you can consider marking off the
30 minute high, and upon subsequent breach of the
30 minute high, enters a long position with a stop under
the current bars low. Alternate tactics are taught in
Pristines seminars.
Targets
The target area is generally the prior pivot high,
however, in very strong markets you could consider
taking a portion of your gains at the initial target and
looking for new highs with the remaining position.
Management
General management approach is to trail stop losses
behind the prior days low, and considering additional
protective measures once the stock is significantly on
the way to the target.

Alternative Management
Another form of management takes shape from using
pivot lows in a lower timeframe. This advanced concept
is discussed in the advanced Trading the Pristine
Method courses.
Enhancements to the Setup

Often as the pullback ensues the stock exhibits one or
several narrow range bars or bottoming tails. Often the
pullback begins to reverse in an area of Major or Minor
support, depending on whether the trend is sideways or
up. These all serve as tools that you can use to enhance
your choice of which setups to actually trade.

The Pristine Sell Setup

General
The Pristine Sell Setup is a trend following swing
trading setup. It was created to enhance your ability to
short rallies at specific points where odds are favorable
for a move back in the direction of the trend. It can be
used either to enter short on bounces in a downtrend or
bounces in a sideways trend. It generally will not trigger
a sell in an uptrend.
Requirements
The security had been in either a downtrend or sideways
trend on the daily chart. Those in downtrends are more
easily identified by a falling 20-period moving average
under the falling 40-period moving average. They will
also be reflected by the Pristine Trend Indicators red
crosshatching in the lower portion of the chart. Those in
somewhat of a sideways trend may have had the most
recent pivot high break above the prior pivot high after
being in a downtrend. This is evidenced by the Pristine
Trend Indicators yellow crosshatching denoting some
caution as to the general trend.
From there, the stock moves up three to five daily bars
by making some combination of either higher lows or
green bars. The setup is an anticipatory one. When you
see this pattern, you can then set an alarm for either of
the following two conditions as a potential entry for the
following day.

Triggers
Condition1. The stock moves down and breaches the
prior days low. In this case you enter a short position
with a stop loss over the current days high or the prior
days high, whichever is higher. (A general assessment
as to the risk reward of the two alternatives may be used
to determine which is preferable to you on a case-by-
case basis.)
wide range green bar, (or for those stocks which gap
down the following morning), you can consider marking
off the 30 minute low, and upon subsequent breach of
the 30 minute low, enters a short position with a stop
over the current daily bars high. Alternate tactics are
taught in Pristines seminars.
Targets
The target area is generally the prior pivot low, however,
in very weak markets you could consider taking a portion
of your gain at the initial target and looking for new lows
with the remaining position.
Management
behind the prior days high, and considering additional

pivot highs in a smaller timeframe. This advanced
concept is discussed in the advanced Trading the
Pristine Method courses.

Often as the initial bounce ensues the stock exhibits one
or several narrow range bars or topping tails. Often the
bounce begins to reverse in an area of Major or Minor
resistance, depending on whether the trend is sideways
or down. These all serve as tools that you can use to
enhance your choice of which setups to actually trade.

The Bear Trap Setup
The Bear Trap Setup

General
The Bear Trap Setup is actually a bullish setup. It is a
guerrilla setup based on two bars with the trigger after
the second bar. Guerrilla setups often are not trend
following setups but rather setups that rely on some form
of surprise or reversal. Often they start new trends
however sometimes they merely serve to reverse a
move on a short two to ten day timeframe.
Requirements
The security exhibits a red daily bar. (Generally the
wider the better, and closing near the low is better.) With
the stock having moved down and closing near the low
an opportunity might be in place for a reversal.
Trigger
The stock opens somewhat neutral and during the
current day moves up over the high of the prior red bar.
In doing so, it slowly squeezes the traders who were
either short or had sold their long positions into
either covering those shorts or possibly repurchasing
their sold longs. This creates an imbalance in the supply
and demand for the stock as more traders notice the
possible reversal in place.
On the following day, Buy the stock as it moves over the
prior days high with a stop under the current days low.

The Bear Trap Setup
Targets
The target area is generally the next area of daily
resistance. So although the entry requirement is only a
two-bar setup with the third being the trigger, the wider
the price void between the entry the resistance the
better. The trade can last between two and ten days.
The wider targets generally take longer and can be
considered if the overall pattern encompassing the three
bars appears to be a potential trend changing event.
Management
Method Courses.

Climactic volume on the prior wide range red bar as well
as high volume on the engulfing green bar would imply
the setup is more potent.
Note: Although this is a guerrilla play, it might be
enhanced if the move back is in the direction of the
general trend.

The Bull Trap Setup
The Bull Trap Setup

General
The Bull Trap Setup is actually a bearish setup. It is a
guerrilla setup based on two bars with the trigger on the
third bar. Guerrilla setups often are not trend following
setups but rather setups that rely on some form of
surprise or reversal. Often they start new trends however
sometimes they merely serve to reverse a move on a
short two to ten day timeframe.
Requirements
The security exhibits a green daily bar. (Generally the
wider the better, and closing near the high is better.)
With the stock having moved up and closing near the
high an opportunity might be in place for a reversal.
Trigger
The stock opens somewhat neutral and during the
current day moves down under the low of the prior wide
range bar. In doing so, it slowly squeezes those traders
who were long into selling their positions. This creates
an imbalance in the supply and demand for the stock as
more traders notice the possible reversal in place.
Short the stock the next day as it moves under the prior
days low with a stop over the current days high.

The Bull Trap Setup
Targets
support. So although the entry requirement is only a two-
bar setup with the third being the trigger, the wider the
price void between the entry and the support area the
Management
pivot highs in a lower timeframe. This advanced concept
Method courses.

Climactic volume on the prior wide range green bar as
well as high volume on the engulfing red bar would imply
the setup is more potent.

The Bullish Mortgage Play

General
The Bullish Mortgage Play is actually a very bullish
guerrilla setup. It is a guerrilla setup based on one bar
with the trigger on the second bar. Guerrilla setups often
are not trend following setups but rather setups that rely
on some form of surprise or reversal. Often they start
new trends however sometimes they merely serve to
reverse a move on a short two to ten day timeframe. The
Mortgage Play has the highest degree of surprise
associated with any of the Pristine Guerrilla Setups.
Requirements
The security exhibits a red daily bar. (Generally the
wider the better, and closing near the low is better.) With
the stock having moved down and closing near the low
an opportunity might be in place for a reversal.
With the stock having moved down at least one day and
closing near the low an opportunity might be in place for
a reversal.
Trigger
The day after the red bar, the stock gaps over the entire
prior bar. In doing so, those traders who were shorting
the stock may feel trapped short or if they were prior
longs who had sold, feel as if they should reverse their
recently proven wrong decision of selling the stock and
so feel compelled to buy the stock back. This may
possibly result in an imbalance between supply and
demand pushing the stock higher.

On the following day, Buy the stock over that days high
with a stop under the recent red bars low.
Targets
Management
Method courses.

Climactic volume on the prior red bar is not required
however it would enhance the setup implying more
traders are caught on the wrong side. High volume on
the day of the gap would imply the setup is more potent.
This setup creates the highest level of surprise that a
Pristine Guerrilla Pattern can create.

The Bearish Mortgage Play

General
The Bearish Mortgage Play is actually a very bearish
guerrilla setup. It is a guerrilla setup based on one bar
with the trigger on the second bar. Guerrilla setups often
are not trend following setups but rather setups that rely
on some form of surprise or reversal. Often they start
new trends however sometimes they merely serve to
reverse a move on a short two to ten day timeframe. The
Mortgage Play has the highest degree of surprise
associated with any of the Pristine Guerrilla Setups.
Requirements
The security exhibits a green daily bar. (Generally the
wider the better, and closing near the high is better.)
With the stock having moved up and closing near the
high an opportunity might be in place for a reversal.
Trigger
The day after the green bar, the stock gaps down under
the entire prior green bar. In doing so, traders who were
long in the stock feel trapped. This may possibly result in
an imbalance between supply and demand pushing the
stock lower.
On the following day, Short the stock under that second
days low with a stop over the prior green bars high.

Targets
price void between the entry the support the better. The
trade can last between two and ten days. The wider
targets generally take longer and can be considered if
the overall pattern encompassing the three bars appears
to be a potential trend changing event.
Management
Method courses.

Climactic volume on the prior wide range green bar is
not required however it would enhance the setup
implying more traders are caught on the wrong side.
High volume on the day of the gap would imply the setup
is more potent. This setup creates the highest level of
surprise that a Pristine Guerrilla Pattern can create.

The Red Bar Ignored Play

General
The Red Bar Ignored Play is a bullish guerrilla setup. It is
a guerrilla setup based on two bars with the trigger on
the third bar. Guerrilla setups often are not trend
Requirements
The security exhibits a red bar. The closer the bar closes
to the low of the day the better.
Trigger
The day after, the stock must engulf the prior red bar. In
doing so, those traders who were shorting the stock feel
trapped short or if they were prior longs who had sold
out, they might feel as if they should reverse their recent
wrong decision to have sold the stock and are compelled
to buy the stock back. The more the red bar is ignored
and the further up the prior red bar the move goes the
more bullish. This may possibly result in an imbalance
between supply and demand pushing the stock higher.
On the following day, Buy the stock over the high of the
second day, with a stop under the low of the prior day.

Targets
considered if the overall pattern encompassing the two
Management
Method courses.

Climactic volume on the prior red bar is an
enhancement. High volume on the day of the reversal
would imply the setup is more potent although this setup
creates a fairly high level of surprise. The deeper the
stock moves up into the prior bar the better the setup
should be. Although this might seem counterintuitive, as
one would have to pay a higher price for the stock the
reason is simply that there should be more traders
surprised by the larger move.

The Green Bar Ignored Play

General
The Green Bar Ignored Play is a bearish guerrilla setup.
It is a guerrilla setup based on two bars with the trigger
on the third bar. Guerrilla setups often are not trend
Requirements
The security exhibits a green bar. The closer the bar
closes to the high of the day the better.
Trigger
The day after, the stock must engulf the prior green bar.
In doing so, those traders who were long in the stock
feel trapped long and are compelled to sell the stock.
The more the green bar is ignored and the further down
the prior green bar the move goes the more bearish.
This may possibly result in an imbalance between supply
and demand pushing the stock lower.
On the following day, Short the stock under the low of
the second day, with a stop over the high of the prior
day.

Targets
price void between the entry the support the better. The
trade can last between two and ten days. The wider
targets generally take longer and can be considered if
the overall pattern encompassing the two bars appears
to be a potential trend changing event.
Management
Method courses.

Climactic volume on the prior wide range green bar is a
big plus. High volume on the day of the reversal would
imply the setup is more potent although this setup
creates a fairly high level of surprise. The deeper the
stock moves down into the prior wide range bar the
better the setup should be. Although this might seem
counterintuitive, as one would have to short at a lower
price the reason is simply that there should be more
traders surprised.

The Pristine Basing Setup

General
The Pristine Basing Setup is a scan which searches for
stocks whose daily charts are moving in sideways
consolidations. Pristine uses several of these terms
interchangeably. Consolidations and bases are generally
corrections through time. Thus, when a stock goes
sideways for a period of days it is generally expected to
eventually continue in the direction it had been going. A
base itself is defined by a series of approximately equal
pivot highs and pivot lows. These points imply areas of
temporary support and resistance. A breach of these
areas signals a breach of support or resistance and can
be traded accordingly.
Requirements
The daily pattern must be exhibiting a fairly narrow range
of approximately equal pivot highs and equal pivot lows.
The pattern should be narrow enough to be reflective of
a consolidation but not so narrow that it appears that
there is little or no interest in the stock in either direction.
(That very, very narrow condition is otherwise known as
flat-lining.) Essentially, it should be making pivot highs
and lows within the base.

Triggers
On the day of the trigger the stock breaks out of/down
from the base closing above/below the recent
consolidation area.
On the following day, buy the stock above the high of the
breakout bar or short below the low of the breakdown
bar as the case may be. Again, the more successful
trades will be the ones that break in the direction the
stock had already been going before the base.
Targets
The target area is generally the prior pivot
support/resistance in the next higher timeframe (weekly)
as the case may be however in trending markets you
could consider taking a portion of your gains at the initial
target and looking for further gains with the remaining
portion of the position.
Management
behind the prior days high/low, and considering
additional protective measures once the stock is
significantly on the way to the target.
pivot highs/lows in a lower timeframe. This advanced

The Above Average Volume Setup

General
The Above Average Volume Setup is intended to find
stocks whose recent daily volume has increased
substantially in relation to recent days. The general
concept is this: When a stock makes a certain pattern, if
the volume increases substantially as that pattern is
being made, the pattern might have more significance,
and thus might exhibit more follow through. When a
stock has no particular pattern the recent spate of much
higher than average volume might tip one off that a new
move is starting. When a stock has been moving in one
direction for some time, the coincident increase in
volume might signify that a turn is near. Thus, this scan
flags stocks with the volume increases. You then must
analyze the price pattern to determine whether the high
volume might be enhancing an existing move, starting a
new move or ending a move.
Requirements
The current days volume must be approximately two
times the recent daily average volume. When this occurs
on a given daily bar the stock will present the signal.
From there, you analyze the stock to determine whether
it fits any of the categories described above and possibly
whether it is making a pattern specifically of interest to
you.

Triggers
Condition1. If the high volume occurs on the trigger of a
pattern that you are familiar with, you will use the same
entry, management, and exit strategies that he or she
might use for trading the underlying pattern.
Condition2. If the high volume occurs in an area which
appears to be potentially ending a move, (for example,
five days up and then the stock exhibits a topping tail on
above average volume) . This could be a sign that the
move is coming to an end and one would use the low of
the prior bar to either exit a long or possibly even open a
short (with a stop over the prior high) provided the price
pattern offered a significant void and a worthwhile risk
reward.
Condition3. If the high volume occurs in an area which
appears to be potentially starting a move, (for example,
the stock has been basing sideways for a number of
days and then breaks out on above average volume).
This could be a sign that a new move is at hand and one
would use the high of the prior bar to either exit a short
or even open a new long (or the low of the prior bar to do
the reverse) provided the price pattern offered a
significant void and a worthwhile risk reward.
Targets
The target area is generally the prior pivot high/low as
the case may be however, in trending markets you could
consider taking a portion of your gains at the initial target
and looking for even larger gains with the remaining
portion of the position.

Management
behind the prior days high/low, and considering
additional protective measures once the stock is
significantly on the way to the target.
pivot highs/lows in a lower timeframe. This advanced

The Bullish Changing of the Guard Setup
The Bullish Changing of the Guard

Setup
General
The Bullish Changing of the Guard Setup is a trend
following strategy for the most part, although
occasionally it will find interesting climactic setups. The
concept is that the stock has moved down for a number
of days in each case making either red bars or lower
highs. After a number of such days the stock makes a
green bar. Pristine refers to this bar as a Changing of the
Guard. It implies that after some period of time the stock
may be about to reverse.
Requirements
After a number of days down, the stock must exhibit a
green bar. The green bar, following a number of red
ones implies a possible reversal.
Triggers
On the day after the Changing of the Guard, Buy when
the stock trades above the prior days high with a stop
loss under either the current days or prior days low,
(whichever is deemed more effective based on the
amount of protection, the risk reward ratio alternatives
and the general comparison of both those choices based
on these two variables).

The Bullish Changing of the Guard Setup
Targets
The target area is generally the prior pivot high however,
in trending markets you could consider taking a portion
of your gains at the initial target and looking for new
highs with the remaining position. (In flatter markets you
might look to an interim area based on retracement
levels to take all or partial profits.) Retracement theory is
discussed further in the Trading the Pristine Method
Part II course.
Management
Method courses.

The Bullish Bottoming Tail Setup

General
The Bullish Bottoming Tail Setup is a trend following
strategy for the most part, although occasionally it will
find interesting climactic setups. The concept is that the
stock has moved down for a number of days in each
case making either red bars or lower highs. After a
number of such days the stock makes a Bottoming Tail.
This implies that after some period of time the stock may
be about to reverse as the bottoming tail is possibly a
first sign of slowing momentum to the downside. (Inside
the bottoming tail, somewhat of a reversal has gone on
in a smaller timeframe.)
Requirements
After a number of days down, the stock must exhibit a
bottoming tail. This bar, following a number of red ones
implies a possible reversal is at hand since the
momentum to the downside might be slowing and a
reversal has taken place on a smaller timeframe.
Triggers
On the day after the Bottoming Tail, buy when the stock
trades above the prior days low with a stop loss under
either the current days or prior days low, whichever is
deemed more effective based on the amount of
protection, the risk reward ratio alternatives and the
general comparison of both those choices based on
these two variables.

Targets
The target area is generally the prior pivot high however,
of your gains at the initial target and looking for new
highs with the remaining position. (In flatter markets you
might look to an interim area based on retracement
levels to take all or partial profits.) Retracement theory is
Part II course.
Management
Method courses.

The Bearish Changing of the Guard Setup
The Bearish Changing of the Guard

Setup
General
The Bearish Changing of the Guard Setup is a trend
following strategy for the most part, although
occasionally it will find interesting climactic setups. The
concept is that the stock has moved up for a number of
days in each case making either green bars or higher
lows. After a number of such days the stock makes a red
bar. Pristine refers to this bar as a Changing of the
Guard. It implies that after some period of time the stock
may be about to reverse.
Requirements
After a number of days up, the stock must exhibit a red
bar. The red bar, following a number of green ones
implies a possible reversal.
Triggers
On the day after the Changing of the Guard, Short when
the stock trades under the prior days low with a stop
loss above either the current days or prior days high,
(whichever is deemed more effective based on the
amount of protection, the risk-reward ratio alternatives
and the general comparison of both those choices based
on these two variables).

The Bearish Changing of the Guard Setup
Targets
The target area is generally the prior pivot low however,
of your gains at the initial target and looking for new lows
with the remaining position. (In flatter markets you might
look to an interim area based on retracement levels to
take all or partial profits.) Retracement theory is
Part II course.
Management
Method courses.

The Bearish Topping Tail Setup

General
The Bearish Topping Tail Setup is a trend-following
strategy for the most part, although occasionally it will
find interesting climactic setups. The concept is that the
stock has moved up for a number of days in each case
making either green bars or higher lows. After a number
of such days the stock makes a Topping Tail. This
implies that after some period of time the stock may be
about to reverse as the topping tail is possibly a first sign
of slowing momentum to the upside. (Inside the topping
tail, somewhat of a reversal has gone on in a smaller
timeframe.)
Requirements
After a number of days up, the stock must exhibit a
topping tail. This bar, following a number of red ones
implies a possible reversal is at hand since the
momentum to the upside might be slowing and a
reversal has taken place on a smaller timeframe.
Triggers
On the day after the topping tail, short when the stock
trades below the prior days low with a stop loss over
either the current days or prior days high, whichever is
deemed more effective based on the amount of
protection, the risk reward ratio alternatives and the
general comparison of both those choices based on
these two variables.

Targets
The target area is generally the prior pivot low however,
of your gains at the initial target and looking for new lows
with the remaining position. (In flatter markets you might
look to an interim area based on retracement levels to
take all or partial profits.) Retracement theory is
Part II course.
Management
Method courses.

The Climactic Buy Setup

General
The Climactic Buy Setup is a counter-trend swing-
trading setup. It was created to enhance your ability spot
reversals from oversold conditions where odds are
favorable for a move back in the opposite direction
(commonly referred to as a retracement). It can be used
in all types of markets. If the entire market has sold off
sharply one may find quite a number of such setups.
Or it can be used on a case by case basis where
individual stocks have climaxed regardless of the market
environment, due to factors unique to that stock.
Requirements
The security had been in a downtrend on the daily chart.
This is evidenced by the Pristine Trend Indicators red
crosshatching.
The stock sells off creating five or more daily red bars.
Ideally the bars will not overlap and will show a fluid
move lower, with the bars widening creating a pattern
that appears extended and may be evidenced as such
by the distance from the declining 20MA.
When you see this pattern, you can then set an alarm for
either of the following two conditions as a potential entry
for the following day.

Triggers
Condition1. The stock moves up and breaches the prior
days high. In this case you enters a long position with a
stop loss under the current days low or the prior days
low, whichever is lower (A general assessment as to the
risk reward of the two alternatives may be used to
determine which is preferable to you on a case by case
basis.)
wide range red bar, (or for those stocks which gap up
the following morning), you can consider marking off the
30 minute high, and upon subsequent breach of the
30 minute high, enters a long position with a stop under
the current bars low. Alternate tactics are taught in
Pristines seminars.
Targets
The target area is generally some percentage
retracement of the most recent move, such as 30 to
50%, however, in very strong markets you could
consider taking a portion of your gains at the initial target
and looking for a full retracement.
Alternate interim targets can be gleaned from reviewing
the next lower timeframe for areas of consolidation
which may have occurred on the way down which could
provide resistance on the way back up.
Management
Method courses.

Often as the climactic condition arises the stock
subsequently exhibits one or several narrow range bars
or bottoming tails. Often the selloff begins to reverse in
an area of Major support. The down move may also end
on above average volume (climactic volume). These all
serve as tools that you can use to enhance your choice
of which setups to actually trade.

The Climactic Sell Setup

General
The Climactic Sell Setup is a counter-trend swing
trading setup. It was created to enhance your ability spot
reversals from overbought conditions where odds are
favorable for a move back in the opposite direction
(commonly referred to as a retracement). It can be used
in all types of markets. If the entire market has rallied
hard one may find quite a number of such setups. Or it
can be used on a case by case basis where individual
stocks have climaxed regardless of the market
environment, due to factors unique to that stock.
Requirements
The security had been in an uptrend on the daily chart.
This is evidenced by the Pristine Trend Indicators green
crosshatching.
The stock rallies creating five or more daily green bars.
Ideally the bars will not overlap and will show a fluid
move higher, with the bars widening creating a pattern
that appears extended and may be evidenced as such
by the distance from the rising 20MA. When you see this
pattern, you can then set an alarm for either of the
following two conditions as a potential entry for the
following day.

Triggers
Condition1. The stock moves down and breaches the
prior days low. In this case you enter a short position
with a stop loss over the current days high or the prior
days high, whichever is higher (A general assessment
as to the risk reward of the two alternatives may be used
to determine which is preferable to you on a case by
case basis.)
wide range green bar, (or for those stocks which gap
down the following morning), you can consider marking
off the 30 minute low, and upon subsequent breach of
the 30 minute low, enters a short position with a stop
over the current bars high. Alternate tactics are taught in
Pristines seminars.
Targets
The target area is generally some percentage
retracement of the most recent move, such as 30% to
50%, however, in very weak markets you could consider
taking a portion of your gains at the initial target and
looking for a full retracement.
Alternate interim targets can be gleaned from reviewing
the next lower timeframe for areas of consolidation
which may have occurred on the way up which could
provide support on the way back up.
Management
Method courses.

Often as the climactic condition arises the stock
subsequently exhibits one or several narrow range bars
or topping tails. Often the climax begins to reverse in an
area of major resistance. The up move may also end on
above average volume (climactic volume). These all
serve as tools that you can use to enhance your choice
of which setups to actually trade.

Using Pristine Method Pattern Scans using The
Explorer
Using Pristine Method Pattern Scans

using The Explorer
How to find patterns:
1. With MetaStock open, select Tools >
The Explorer.
2. Scroll down to the explorations that start with PM.
3. Select your Exploration and click Explore.
To add securities to your scan:
a. Select Add Securities.
b. Add the securities you would like to include in
your scan.
To select a whole folder for exploration:
a. Select Tools> Select all.
b. Click Open.
4. When you are done selecting securities click OK.
5. When your exploration has run, click View Reports.

Understanding Pristine Method Pattern Scan reports
in The Explorer
Understanding Pristine Method Pattern

Scan reports in The Explorer
From the reports screen you will see a list of only the
explorations that met the criteria for the selected scan.
You may sort columns by clicking on them.
All securities with a confirmed Buy will have a 1 in the
Buy column.
Securities that are currently Bullish according to the
Pristine Trend Indicator will have a 1 in the Bullish
column.
Securities that are currently Bearish according the
Pristine Trend Indicator will have a 1 in the Bearish
column.
All securities that have a 1 under Setup will have a
buy condition for the next day. If you want to monitor
this condition, you should open the chart and attach
the expert to see at what price you should look to buy
or sell the security.

Using Expert Advisors with Pristine Method
Pattern Scans
Using Expert Advisors with

Pristine Method Pattern Scans
To Attach an Expert Advisor to an open chart:
1. With MetaStock open, select Tools >
Expert Advisor.
2. Scroll down to the preferred scan
(all scans start with PM ).
3. Highlight the scan youd like to pick and click
Attach.
4. Click Close.
To view the Expert Commentary:

1. Right-click on any empty part of the chart.
2. Select Expert Advisor > Commentary.

Understanding Expert Advisors with Pristine
Method Pattern Scans
Understanding Expert Advisors with

Pristine Method Pattern Scans
In the Pristine Method Pattern Scans:

Blue arrows denote setup bars
Green up arrows denote Buy opportunities
Red down arrows denote short opportunities
All stop signs denote the end of an opportunity.
On the right hand side of the chart above youll see a
commentary bar. Commentary will be calculated on the last
bar of a chart. You can move commentary by using the
arrow keys above the commentary and by clicking on the
chart. The day the commentary is currently evaluating will
be denoted by a black triangle on the chart.

About Pristine
About Pristine
Established in 1994, Pristine.com, a division of Pristine
Capital Holdings, Inc., provides insight, intelligence, and
education for the self-directed trader. Our combination of
live seminars and online services guide both new and
experienced traders to a more intuitive understanding of
the markets. From a modest beginning as a daily fax
sheet outlining explanations of the day's market activity,
Pristine.com has grown to become one of the world's
largest and most sophisticated online educational
services for active, self-directed traders with over 60,000
subscribers to its daily advisory services and over 400
multi-language seminars conducted each year around
the globe.
The aim of Pristine.com is to educate individuals
interested in self-directed trading and to provide trading
ideas for those already experienced in the markets.
The Pristine Method includes a candid explanation of
the psychological challenges of day and swing trading.
Pristine.com also differentiates itself by not just teaching
what to trade, but when and why to trade.
Ultimately, individuals who participate in the complete
Pristine educational system are better equipped to
understand the markets and sufficiently prepared to
trade independently. Pristine.com offers a series of
educational seminars around the country, as well as an
array of real-time, daily, weekly, and monthly services.
For more information on the Pristine Method visit
www.pristine.com/seminars

About Greg Capra
About Greg Capra

Greg Capra is President and CEO of Pristine Capital
Holdings, Inc., the nation's leading online educational
service for active, self-directed traders. He has been a
day and swing trader for more than 15 years. Back in the
early 1990s he found a way to collect the intra-day stock
quotes coming into his computer and store them into a
program meant for commodities. For those interested,
this program was called SuperTic, which was then
upgraded to what was Metastocks intra-day software at
the time.
This was years before intra-day stock charts were
available to traders and even retail brokers. These were
the days when institutions had all the advantages and
the playing field was far from the level one of today. But
times were about to change. Of course, the level of intra-
day data available today has come light years from that
time. This was a time when a heavy rain storm could
block the data feed from Data Broadcasting, now known
as eSignal to his satellite.
While the trading tools were crude in those early years,
it was the start of a time that was to become a new
profession. What Mr. Capra taught himself in those early
years lead to the decision to form what was to become
the nations leading educational firm for self-directed
traders. In time, execution systems that opened and
closed orders at light speed became available. This
allowed anyone with the desire to become a professional
trader to compete on a level field with any institutional
trader or hedge fund.

About Greg Capra
Before founding Pristine in 1994, Mr. Capra ran a

successful business for 15 years. Wanting to invest that
money wisely, Mr. Capra became a voracious student of
the market and became especially interested in the
quantitative analysis of market movements.

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Pristine Method Pattern Scans i

The Climactic Sell Setup ..................................... 41

ii Pristine Method Pattern Scans

To install the Pristine Method Pattern Scans:

To start using Technical Patterns the Pristine Way:

Pristine Method Pattern Scans 3

About Pristine Method Pattern Scans

In addition, the following Exploration will also be added

4 Pristine Method Pattern Scans

Understanding Pristine Method Pattern

The Pristine Trend Indicator

Pristine Method Pattern Scans 5

6 Pristine Method Pattern Scans

The Pristine Buy Setup

Pristine Method Pattern Scans 7

8 Pristine Method Pattern Scans

Enhancements to the Setup

Pristine Method Pattern Scans 9

The Pristine Sell Setup

10 Pristine Method Pattern Scans

Pristine Method Pattern Scans 11

Enhancements to the Setup

12 Pristine Method Pattern Scans

The Bear Trap Setup

Pristine Method Pattern Scans 13

Enhancements to the Setup

14 Pristine Method Pattern Scans

The Bull Trap Setup

Pristine Method Pattern Scans 15

Enhancements to the Setup

16 Pristine Method Pattern Scans

The Bullish Mortgage Play

Pristine Method Pattern Scans 17

Enhancements to the Setup

18 Pristine Method Pattern Scans

The Bearish Mortgage Play

Pristine Method Pattern Scans 19

Enhancements to the Setup

20 Pristine Method Pattern Scans

The Red Bar Ignored Play

Pristine Method Pattern Scans 21

Enhancements to the Setup

22 Pristine Method Pattern Scans

The Green Bar Ignored Play

Pristine Method Pattern Scans 23

Enhancements to the Setup

24 Pristine Method Pattern Scans

The Pristine Basing Setup

Pristine Method Pattern Scans 25

26 Pristine Method Pattern Scans

The Above Average Volume Setup

Pristine Method Pattern Scans 27

28 Pristine Method Pattern Scans

Pristine Method Pattern Scans 29

The Bullish Changing of the Guard

30 Pristine Method Pattern Scans

Pristine Method Pattern Scans 31

The Bullish Bottoming Tail Setup

32 Pristine Method Pattern Scans

Pristine Method Pattern Scans 33

The Bearish Changing of the Guard