Page 35 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 35

________________________________________________________________________

Here Is A List Of Basic Stops To Use:

1. Initial Stop: Set at the beginning of your trade. Entered as you
enter the market. The Initial Stop is also used to calculate your
position size. It is the largest loss you will take in the current
trade. This is usually the “Base Leg” of a “Pyramid Trading
Point®” or opposite side of an ART® “One-Bar Reversal” and
ART® “Two-Bar Reversal” pattern.

2. Trailing Stop: Develops as the market develops. Usually is
created as a new “Pyramid Trading Point®” Base-Leg forms or
as a new ART® “One-Bar Reversal” and ART® “Two-Bar
Reversal” pattern develops. This stop enables you to lock in
profit as the market moves in your favor.

3. Resistance Stop: Is a form of trailing stop used in trends. It is
placed just under counter-trend pullbacks in a trend. Can be a
“Pyramid Trading Point®” Base-Leg or pull-backs that do not
form a qualified “Pyramid Trading Point ®”.

4. Three Bar Trailing Stop: Used in a trend if the market seems to
be losing momentum and you anticipate a reversal in trend.

________________________________________________________________________________________________

Copyright © 2012 TradersCoach.com, Inc. All rights reserved. Any reproduction and/or electronic
transmission of this document is prohibited without the prior written consent of TradersCoach.com

and is a violation of international copyright law. AR-1021-04-06.