Cost of a Pyramid

Elementary measures

So far, we have defined number of different terms used in Pyramid Investing: some price-related terms such as Top, Bottom and Step or amount-related terms such as Base and Increment. Values of these terms represent elementary measures of a pyramid. These terms as a group, that is combination of their values, uniquely define any arbitrary pyramid. In other words, we can say that any pyramid is fully determined by values of the [...]

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Amount-Related Terms: Size, Base & Increment

Figure with amount coordinate items and terms

In earlier article we defined price-related terms and talked about discrete price levels. Now we need to look at the horizontal coordinate and define amount-related terms. In the article Coordinate System in use for Pyramids we saw that horizontal width of a particular pyramid rectangle corresponds to the amount of shares. Due to the nature of pyramidal shape, the pyramid gets wider towards the bottom. This is [...]

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