Draw a straight line across the bottom of a page about 1-inch above the edge of the paper. Cap the line with an arrowhead on the right.
Draw a line that begins along the line created in Step 1, about 1 1/2-inch from the left side of the paper -- or the starting point of the line. The line should angle sharply from the baseline toward the middle of the page's top edge. The line should stop about 1 1/2-inches from the top edge of the paper.
Draw a third line, beginning at the top end point of the second line. This line mirrors the sharp angle of the line created in Step 2. Continue drawing the line until it intersects the bottom line on the paper. The intersection point should be about 1 1/2-inches from the right edge of the paper -- or from the right end point of the line.
Erase the part of the line created in Step 1 that is between the two points where the lines created in Steps 2 and 3 intersect it. This should create what looks like a graph with a sharp triangle on it. This triangle is the pyramid.
Label the pyramid. Under the peak of the pyramid, write the word "Climax." Inside the left-hand side of the pyramid, write the phrase "Rising action." Place the word "Exposition" under the left-hand trailing edge. Write "Resolution" or "Denouement" under the arrow cap, and "Falling action" under the right-hand edge of the pyramid.
Break the story idea into individual scenes and plot events. Decide whether each interaction increases or decreases the tension. This exercise helps if you aren't certain where to place a certain scene within the larger picture of a story or aren't sure whether or not the tension of a scene needs to increase.
Write the moment that is the climactic scene at the peak of the pyramid, where it reads "Climax." This is the turning point of the story, where the characters realize what they need to do to solve the problem of the story and put it into place.
Write out the events that lead up to the story, in the "exposition" section. These are the events that describe and introduce the characters in the story. They may or may not know about the problem in the story yet. These scenes don't increase the tension much but provide details a reader needs to know to understand the story.
Write the events that lead to the climax along the "Rising Action." Ideally, each plot element slightly increases the tension over the previous moment, so the pyramid is effectively a graph of tension over the course of the book.
Write the "falling action" events along the right-edge of the pyramid. These are the events that come after the climax and solve the problem presented in the climax. These are the result of the climax and a clue that the story is near its end.
Conclude the story using the "Resolution" or "Denouement" section of the pyramid. "Denouement" is a French word meaning untying. It is where all of the loose threads of the story are resolved. Use this section to tell the reader how everyone is after the climax.