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® “Home-Study Course” Study Manual Page 147
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“Pyramid Trading Point®” Requirements
The minimum requirements of a BULLISH “Pyramid Trading Point®”
are two previous bars with higher highs and higher lows; and the
following two bars of lower highs and lower lows. The minimum
requirements of a BEARISH “Pyramid Trading Point®” are two
previous bars with lower highs and lower lows; and the following two
bars of higher highs and higher lows.
When prices pullback more than the minimum requirements outlined
above, we can draw the “Base Leg” of the “Pyramid Trading Point®”.
The ART® “Charting Software” takes into consideration minimum
“Pyramid Trading Point®” requirements along with other momentum
characteristics when identifying a “Pyramid Trading Point®”. The
software looks for the best “Pyramid Trading Point®” and may pass on
some even though they meet the minimum requirements.
The larger the area inside the “Pyramid Trading Point®”, the more
powerful it will be. In most cases the ART® Charting Software will
draw a yellow colored “Pyramid Trading Point®” before the signal is
confirmed so that you know its strength and have time to use the
“Trade Size Calculator™” to calculate your correct “Trade Size”.
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