Page 136 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 136

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ART® Reversals Tell You When The Trend Ends

If trends don’t end on an ART® “One-Bar Reversal” bar, then they will
usually end on an ART® “Two-Bar Reversal” pattern. So, one way or
another, we are going to have a high probability of spotting a potential
change in trend from the ART® “Reversal” signals.

Because we are using two bars instead of one (with the ART® “Two-Bar
Reversal”), Volume may not be as high as the Volume on other bars.
This is why we don’t include Volume as a requirement on this set up. If
high Volume is present, the ART® “Two-Bar Reversal” patterns will
have a significantly higher probability of success.

When intraday trading below the 5-minute time frame, the ART®
“Two-Bar Reversal” pattern is MORE COMMON than the ART®
“One-Bar Reversal”.

When trading a 1-minute time frame, the ART® “Two-Bar Reversal”
pattern is MORE RELIABLE than the ART® “One-Bar Reversal”
because of the fast time frame. In fast time frames like a 1-minute
chart, trader’s reactions to new information coming into the market
may take two-price bars to represent itself. The ART® “Two-Bar
Reversal” catches this phenomenon.

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