Page 4 - ART® Trading Tips

On the next two charts you will see market cycles that created volatility to extreme for the
ART® Trading Software to effectively bracket the consolidations. When this occurs, you
manually locate the highs and lows of the consolidation and then draw in an upper “Resistance”
level and lower “Support” level to easily identify the consolidation bracket or channel.

On Figure 3.0, you see the RUSSEL E‐MINI 5‐Minute chart. You can see there was a nice trend
down and it looks like the market is now going into a consolidation phase/cycle so we have
MANUALLY drawn in blue lines representing the upper resistance level of the consolidation and
the lower support level of the consolidation. If you are a trend trader, wait for the market for
BREAK either above or below these levels and then enter on the NEXT Pyramid Trading Point®
triangle that forms. We recommend that you do NOT trade any Pyramid Trading Points® INSIDE
the bracket. The highest probability trade is biased to the upside since the down‐trend may be
over. These are opinions on our part which influence the way we use the ART® Trading
Software. This is why ART® in not consider a 100% mechanical trading system. We designed it
NOT to be a 100% mechanical trading system!

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