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® “Home-Study Course” Study Manual  Page 210

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Quality Trading Set-Ups

Here’s how to look for markets with the best potential to trade for
profits. Below is a list of the best trading set-ups to look for:

1. Catching The Big Trend Early:

   One of my favorite set ups is to look for a quiet market, one that is
   not trending and the volatility is now low. It is even better to find a
   market that exhibited high volatility before it became quiet. Chances
   are when it wakes up, it will roar. All big trends come from sleepy,
   quiet markets. All you have to do is pick the right “Pyramid Trading
   Point®” to enter the market when it begins to trend. The key is to
   avoid being whipsawed while trying to catch the trend.

Rules to keep you from being whipsawed:

       a. Wait for the “Average True Range” (“ATR”) to be near its
           20 day low. You are looking for a quiet and flat market.

       b. Choose the farthest away “Pyramid Trading Point®”
           created during the time the market became flat or quiet.

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