Page 129 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 129

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Unexpected Trades In The Opposite Direction

If an ART® “One-Bar Reversal” forms but the market moves in the
opposite direction of the expected trade, this can be a powerful signal.

For example, both a bullish or bearish trade could be taken from the
same ART® “One-Bar Reversal” signal price bar. To do this, you
would bracket the ART® “One-Bar Reversal” signal price bar by one
tick and when the market goes above the signal price bar you buy the
market and when prices go below signal price bar you sell (“short”) the
market.

Another way to use this strategy is if we already have a position in the
market. If an ART® “One-Bar Reversal” forms but the market does
not reverse off this bar, but instead continues its trend then we could
use this to add-on to our position size.

So, this ART® “One-Bar” Reversal could be used as:

1. A stop to exit a trend trade
2. To add-on to a trend trade
3. As an “SAR” if we are aggressive and want to reverse our position in

hopes to catch a trend in the opposite direction early

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