Guerilla Tactics -Day Trading - Oliver Velez

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  • Guerrilla Trading Tactics Guerrilla Trading Tactics

    With With

    Oliver L. VelezOliver L. Velez

    Founder of Pristine.com, and Author of the best selling book, Founder of Pristine.com, and Author of the best selling book, Tools and Tactics for the Master Day TraderTools and Tactics for the Master Day Trader

    Copyright 2002, Pristine Capital Holdings, Inc.Copyright 2002, Pristine Capital Holdings, Inc.

    Pristine.com PresentsPristine.com Presents

  • 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 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. 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.

    Guerrilla 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 distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher.

  • IIntroductionntroductionThe Bullish 20/20 BarThe Bullish 20/20 Bar

    The Bearish 20/20 BarThe Bearish 20/20 Bar

    Guerrilla Trading Tactics Part IGuerrilla Trading Tactics Part I

    Table of ContentsTable of Contents

    Bullish Gap SurpriseBullish Gap Surprise Tactic ThreeTactic Three

    Bearish Gap SurpriseBearish Gap Surprise Tactic FourTactic Four

    The Pristine GapThe Pristine Gap--nn--Snap PlaySnap Play Tactic OneTactic One

    The Pristine GapThe Pristine Gap--nn--Crap PlayCrap Play Tactic TwoTactic Two

    Bullish 20/20 PlayBullish 20/20 Play Tactic FiveTactic Five

    Bearish 20/20 PlayBearish 20/20 Play Tactic SixTactic Six

  • Table of ContentsTable of Contents

    The Bull TrapThe Bull Trap Tactic SevenTactic Seven

    The Bear TrapThe Bear Trap Tactic EightTactic Eight

    The Bearish Mortgage PlayThe Bearish Mortgage Play Tactic NineTactic Nine

    Guerrilla Trading Tactics Part IIGuerrilla Trading Tactics Part II

    The Bullish Mortgage PlayThe Bullish Mortgage Play Tactic TenTactic Ten

    Putting It All TogetherPutting It All TogetherGuerrilla Trading BRCMGuerrilla Trading BRCM

    Guerrilla Trading MUGuerrilla Trading MU

    Guerrilla Trading LLTCGuerrilla Trading LLTC

  • IntroductionIntroduction

    IntroductionIntroduction

  • Four Styles of TradingFour Styles of Trading

    Types of TradingTypes of Trading

    Four Styles of Trading:Four Styles of Trading: CoreCore;; SwingSwing;; GuerillaGuerilla;; MicroMicro

    Which fall into.Which fall into.

    Two Broad Trading Categories:Two Broad Trading Categories: WealthWealth;; IncomeIncome

  • Two Broad Trading CategoriesTwo Broad Trading Categories

    Wealth Trading StylesWealth Trading Styles Income Trading StylesIncome Trading Styles

    Core TradingCore Trading

    Swing TradingSwing Trading

    Guerilla TradingGuerilla Trading

    Micro TradingMicro Trading

    - Weekly Charts

    - Daily Charts

    - Daily & 60 Min

    - Hours to Days- Weeks to Months

    - Days to Weeks

    - 5 Min & 15-Min

    - Minutes to Hours

  • Guerrilla Trading Guerrilla Trading A Brief DescriptionA Brief Description

    The Guerrilla style of market play is our The Guerrilla style of market play is our most cherished form of trading. The most cherished form of trading. The tactics contained in this brief course were designed specificalltactics contained in this brief course were designed specifically for the y for the professional trader who seeks a frequent number of trading playsprofessional trader who seeks a frequent number of trading plays each day. The each day. The following tactics enjoy such a high degree of statistical accurafollowing tactics enjoy such a high degree of statistical accuracy that many of cy that many of our professional inour professional in--house traders focus on them exclusively to earn their living house traders focus on them exclusively to earn their living in the markets. in the markets. We have always taught that the professional trader needs We have always taught that the professional trader needs only 2 to 3 highly reliable trading tactics in his or her arsenaonly 2 to 3 highly reliable trading tactics in his or her arsenal in order to l in order to earn a comfortable living tradingearn a comfortable living trading. You are about to be made aware of 10 such . You are about to be made aware of 10 such tactics. Guerrilla Tactics are designed for the trader who desirtactics. Guerrilla Tactics are designed for the trader who desires to es to grindgrind out out profits over a 1 to 2 day time frame. They do not often result iprofits over a 1 to 2 day time frame. They do not often result in very large gains, n very large gains, but the consistency of their wins makes them an indispensable adbut the consistency of their wins makes them an indispensable addition to your dition to your trading arsenal. With these 10 Guerrilla Trading Tactics, we beltrading arsenal. With these 10 Guerrilla Trading Tactics, we believe your ieve your trading will be taken to an entirely new level. In advance, wetrading will be taken to an entirely new level. In advance, wed like to say, d like to say,

    Welcome to PristineWelcome to Pristines Professional Trading Circles Professional Trading Circle..

  • Bullish20/20 Bar

    BullishBullish20/20 Bar20/20 Bar

    Close at or near the top of the bars range

    Close at or Close at or near the top of near the top of the bars rangethe bars range

    Open at or near the

    bottom of the bars range

    Open at or Open at or near the near the

    bottom of the bottom of the bars rangebars range

    The The BullishBullish 20/2020/20 bar is defined bar is defined by any wideby any wide--range period that has range period that has its open price near the low of that its open price near the low of that period and its close near the high period and its close near the high of that period.of that period.

    We call it We call it 20/2020/20 because as a because as a general rule, the open should be in general rule, the open should be in the lower 20% of the periodthe lower 20% of the periods s range, and the close should be in range, and the close should be in the upper 20% of the periodthe upper 20% of the periods s range, making a long, green range, making a long, green colored candlestick.colored candlestick.

    BullishBullish 20/2020/20 bars are far more bars are far more important when they occur after important when they occur after at least one prior up bar. Several at least one prior up bar. Several proceeding up bars make the proceeding up bars make the 20/2020/20 more significant.more significant.

    The Bullish 20/20 BarThe Bullish 20/20 Bar

  • The Bullish 20/20 BarThe Bullish 20/20 Bar

    BullishBullish 20/2020/20 bars form the bars form the basis of many trading techniques.basis of many trading techniques.

    The The BullishBullish 20/2020/20 bar signifies bar signifies that many traders and investors are that many traders and investors are already long.already long.

    This last fact is what sets up a This last fact is what sets up a possible reversal to the downside.possible reversal to the downside.

    BullishBullish 20/2020/20 bars have more bars have more significance when they occur significance when they occur afterafter a decent move to the a decent move to the upside. We look for at least one upside. We look for at least one prior up bar. prior up bar.

    Important PointsImportant Points

    Bullish20/20 Bar

    BullishBullish20/20 Bar20/20 Bar

    Close at or near the top of the bars range

    Close at or Close at or near the top of near the top of the bars rangethe bars range

    Open at or near the

    bottom of the bars range

    Open at or Open at or near the near the

    bottom of the bottom of the bars rangebars range

  • The Bearish 20/20 BarThe Bearish 20/20 Bar

    The The BearishBearish 20/2020/20 bar is defined by bar is defined by any wideany wide--range period that has its range period that has its open price near the high of that open price near the high of that period and its close near the low of period and its close near the low of that period.that period.

    We call it We call it 20/2020/20 because as a because as a general rule, the open should be in general rule, the open should be in the upper 20% of the