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® “Home-Study Course” Study Manual Page 212

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profitable. Take into account you may have a few stop-outs before
hitting the right trade. If you’re not finding any worth while swing
trades, then try using Set-Up #1 Catching The Big Trend. If you’re
day trading the one minute chart, look at the “Average True Range”
(“ATR”) of the swings and see if swing trading makes sense on that

short time frame.

You can trade the swings perfectly and lose money when the swings
are not wide enough to produce a profit. If this is happening, either
switch to a different entry technique or switch time frames until the
swings are large enough to give you a chance. Markets go through
periods where the swings are not big enough to trade profitably
especially when taking into account commissions. Realize when this
is happening and know that it does not last too long.

3. “Scaling-In” Patterns:

Use these to add on to a current trend. Only “Scale-In” if the trend
is profitable. Then you can stay within your risk parameters.
Anytime you move a stop to either reduce risk or lock in profit, you
can look to “Scale-In” to your current position. Never “Scale-In” to
a point where your risk is greater than 2%. Use the “Pyramid
Trading Points®”, ART® “One-Bar Reversal” bars and the ART®
“Two-Bar Reversal” patterns after a brief correction know as “pull
backs”.

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