oliver velez - micro trading tactics
TRANSCRIPT
![Page 1: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/1.jpg)
This tutorial was originally titled “Micro Trading for a Living” and was recorded at the New York Online Trading Expo
Micro Trading TacticsWith
Oliver L. Velez
Founder of Pristine.com, and Author of the best selling book, Tools and Tactics for the Master Day Trader
Copyright 2000, Pristine Capital Holdings, Inc.
Pristine.com Presents
![Page 2: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/2.jpg)
Introduction
Basic Intro
![Page 3: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/3.jpg)
Types of Trading
•Four Trading Styles: Core, Swing, Guerilla, Micro
•Two Trading Categories: Wealth & Income
Basic Introduction
![Page 4: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/4.jpg)
Wealth Building•Core Trading –•Covers a holding period of weeks to months.
•This style of trading is the new form of investing.
•The Core Trader typically uses weekly charts, and attempts to capture the entire weekly trend.
•Core Trading is best used on key stock indices (DIA, SPY, QQQ, HHH, etc.).
The Four Trading Styles
![Page 5: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/5.jpg)
Core Trading Chart
![Page 6: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/6.jpg)
Wealth Building•Swing Trading –•Covers a holding period of 2 to 5 trading days.
•This style of trading capitalizes on a very overlooked market niche.
•The Swing Trader typically uses daily charts and attempts to buy the dips and side step the declines.
•Swing Trading can be used on anything that moves.
The Four Trading Styles
![Page 7: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/7.jpg)
Swing Trading Chart
![Page 8: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/8.jpg)
Income Producing•Guerilla Trading –•Covers a holding period of 1 to 2 trading days.
•This style of “hit and run” trading capitalizes on reliable overnight trading patterns.
•The Guerilla Trader typically uses daily and hourly charts and buys/sells late day strength/weakness.
•Guerilla Trading can be used on all vehicles.
The Four Trading Styles
![Page 9: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/9.jpg)
Guerilla Trading Chart
![Page 10: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/10.jpg)
Income Producing•Micro Trading –•Covers a holding period of seconds to hours.
•This style of active trading goes after small but frequent bite-sized gains.
•The Micro Trader typically uses 5- & 15-minute charts and buys/sells dips/rallies, BO/BD.
•Micro Trading can be used on all active stocks.
The Four Trading Styles
![Page 11: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/11.jpg)
Micro Trading Charts
![Page 12: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/12.jpg)
Tools of the Micro Trade
•Charting Tools: 15 & 5-min charts, 20 and 200 period moving averages
•Market Timing Tools: Nasdaq & S&P Futures, NYSE and Nasdaq TICKs, NYSE & Nasdaq TRINs
Micro Trading Tools
![Page 13: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/13.jpg)
Micro
Charting Tools
Charting Tools
![Page 14: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/14.jpg)
Pristine Capital Holdings, Inc.
5-Minute Chart
![Page 15: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/15.jpg)
15-Minute Chart
![Page 16: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/16.jpg)
Pristine Capital Holdings, Inc.
The Power of the 20 & 200 MAs
![Page 17: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/17.jpg)
Micro
Market Timing Tools
Market Timing Tools
![Page 18: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/18.jpg)
S&P and Nasdaq Futures Charts
![Page 19: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/19.jpg)
NYSE & Nasdaq TICK
![Page 20: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/20.jpg)
NYSE & Nasdaq TRIN
![Page 21: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/21.jpg)
The 3 Micro Trading Phases of the Day
1) Phase 1 - 9:30 to 11:15 (Trade BO/ Reversals)
2) Phase 2 - 11:15 to 2:15 (Mid-day Doldrums)
3) Phase 3 - 2:15 to 4:00 (Trade B/O Reversals)
3 Micro Trading Phases
![Page 22: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/22.jpg)
The 3 Phases of the Trading Day
![Page 23: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/23.jpg)
The 3 Phases of the Trading Day
![Page 24: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/24.jpg)
The 3 Phases of the Trading Day
![Page 25: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/25.jpg)
The 9 Micro Trading Reversal Times
Phase 1 Reversal Times - 9:35 10:00, 10:30, 11:15Phase 2 Reversal Times – 12 & 1:30
Phase 3 Reversal Times - 2:30, 3:00, 3:30
Reversal Times
![Page 26: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/26.jpg)
Major Reversal Times
![Page 27: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/27.jpg)
Major Reversal Times
![Page 28: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/28.jpg)
Major Reversal Times
![Page 29: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/29.jpg)
Phase 1 Trading Tactics1) The 9:30 Breakout/Breakdown Play
2) The 10:00 Reversal Play
3) Pristine’s 30-Minute Rule
4) The 11:00 Topping/Bottoming Play
5) The 200 Moving Average Play
Micro Trading Phase 1
![Page 30: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/30.jpg)
9:35 BD and a 10:00 Bottom
![Page 31: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/31.jpg)
9:35 BD, 10:00 Bottom, 11:00 Top
![Page 32: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/32.jpg)
9:35 BD, 10:00 Bottom, 11:00 Top
![Page 33: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/33.jpg)
9:35 BD, 10:00 Bottom, 11:00 Top
![Page 34: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/34.jpg)
9:35 BD, 10:00 Bottom, 11:00 Top
![Page 35: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/35.jpg)
9:35 BD, 10:00 Bottom, 11:00 Top
![Page 36: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/36.jpg)
30-Min Buy, 11:00 Top
![Page 37: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/37.jpg)
30-Min Buy, 11:00 Top
![Page 38: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/38.jpg)
10:00 Top, 10:30 Reversal
![Page 39: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/39.jpg)
200 MA Play at 10:30 Reversal
![Page 40: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/40.jpg)
Phase 2 Trading Tactics1) The 11:00 – 11:15 Topping/Bottoming Play
2) The Good Lunch Play
3) The 15-minute Trading Dip Play
4) The 1:30 Reversal Play
Micro Trading Phase 2
![Page 41: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/41.jpg)
11:00 – 11:15 Topping Play
![Page 42: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/42.jpg)
11:00 – 11:15 Topping Play
![Page 43: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/43.jpg)
The 1:30 Reversal Play
![Page 44: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/44.jpg)
The 15-Minute Trading Dip
![Page 45: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/45.jpg)
1:30 Rev & 15-Minute Dip
![Page 46: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/46.jpg)
11:00 Top and 1:30 Dip
![Page 47: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/47.jpg)
Phase 3 Trading Tactics1) The 3:00 Topping/Bottoming Play
2) 200 Moving Average Play
3) The Late Day Breakout/down Play
Micro Trading Phase 3
![Page 48: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/48.jpg)
3:00 Topping Play
![Page 49: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/49.jpg)
3:00 Topping Play at 200 MA
![Page 50: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/50.jpg)
The Late Day Breakout (LDB)
Prist ine Capital Hold ings, Inc. 7-11 South Broadway, Sui te 210 , Whi te P la ins , NY 10601 Tel: (914) 682 -7613 Fax: (914) 682-7 6 4 0 Web: www.pr is t ine .com E-mail: edi tors@prist ine.com
P E O P L E S O F T I N C ( P S F T ) The Simple Art Of Trading® Part I
Chart Courtesy o f www.Execut ioner .com
5 -M i n u t e C h a r t Note that the Pr is t ine Day Trader b u y s P S F T on the break of the most recent ser ies of equal highs, not on the break of the h igh of the day.
Note how P S F T’s breakout occurred on Above Average Volume.
High of the Day
Our initial protective stop (1) is tight as it is, but the astute Pris t ine Day Trader knows how and when to quickly raise i t to make it even tighter (2).
1
2
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
![Page 51: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/51.jpg)
The Late Day Breakout (LDB)
Prist ine Capi ta l Holdings, Inc. 7-11 South Broadway , Su i te 210 , Whi te P la ins , NY 10601 Tel: (914) 682 -7613 F a x : (914 ) 682-7 6 4 0 W e b : www.pr is t ine .com E -mail : ed i tors@pr is t ine .com
B I O M E T I N C ( B M E T ) The S imple Ar t Of Trad ing® Par t I
Chart Courte sy o f www.Execut ioner . com
5 - M i n u t e C h a r t
T h e P r i s t i n e D a y T r a d e r b u y s n e w high .
Note th is near perfect Pr is t ine B u y se tup .
S top
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
![Page 52: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/52.jpg)
The Late Day Breakout (LDB)
Prist ine Capita l Hold ings , Inc. 7-11 South Broadway , Su i te 210 , Whi te P la ins , NY 10601 Tel: (914) 682 -7613 F a x : (914 ) 682-7 6 4 0 W e b : www.pr is t ine .com E -mail : ed i tors@pr is t ine .com
S T A P L E S I N C ( S P L S ) The S imple Ar t Of Trad ing® Par t I
C h a r t C o u r t e s y o f w w w . E x e c u t i o n e r . com
5 - M i n u t e C h a r t T h e L a t e D a y B r e a ko u t ( L D B ) t o a n e w d a i l y h igh of fe rs the Pr i s t ine Day Trader an exce l len t m ic ro -t rading opportuni ty , as wel l a s a s t rong overnight t rading poss ib i l i ty .
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
![Page 53: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/53.jpg)
The Late Day Breakout (LDB)
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
![Page 54: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/54.jpg)
The Late Day Breakout (LDB)
Late Day Breakout
Criteria
1) Stock is up on the day
2) Stock is above its opening price
3) Stocks is trading at or near the high of the day
4) Stock breaks out latein the day (anytime after 2:30 EST).
![Page 55: Oliver Velez - Micro Trading Tactics](https://reader033.vdocument.in/reader033/viewer/2022050614/55cf9cb8550346d033aacf59/html5/thumbnails/55.jpg)
Tools & Tactics – A Must Read
A Japanese proverb says, “If you wish to know the road, inquire of those who have traveled it.” The authors of Tools and Tactics for the Master Trader clearly know the road. Their unique insights, trading tactics and powerful tools, so enjoyably presented, make this a book that belongs on every trader’s shelf.
Steve Nison, CMT - Author of Japanese Candlestick Charting Techniques