Remember from Part 1, that boxes
- identify momentum
- is trend-following
- is reactionary, and does not predict or anticipate a move.
In addition to using boxes to identify support/resistance levels, we can use boxes to identify breakout levels.
Breakout levels are identified when the price breaks from a previous day's low/high. If the price breaks from the low/high of multiple days, then you can expect a more significant move in that direction.
In Example 1:
- Price rejects the resistance level (formed by the confluence of 2 previous day's high)
- Breaking below the previous day's low
- Selling opportunity, SL beyond the box high, TP at the lower support level formed by the confluence of 2 box lows.
In Example 2:
- Price rejects resistance level (formed by the confluence of 4 previous days' high)
- Breaking below the previous day's low
- Selling opportunity, SL beyond the resistance level, TP at the lower support level, formed by the confluence of 2 box lows.
Note: In this case, the Risk:Reward ratio is lower than 1.
When using boxes, because it is reacting to price, it can have a tendency to be slightly lagging.
It is always a good practice to combine at least 2 different types of indicators in your analysis.
- identify momentum
- is trend-following
- is reactionary, and does not predict or anticipate a move.
In addition to using boxes to identify support/resistance levels, we can use boxes to identify breakout levels.
Breakout levels are identified when the price breaks from a previous day's low/high. If the price breaks from the low/high of multiple days, then you can expect a more significant move in that direction.
In Example 1:
- Price rejects the resistance level (formed by the confluence of 2 previous day's high)
- Breaking below the previous day's low
- Selling opportunity, SL beyond the box high, TP at the lower support level formed by the confluence of 2 box lows.
In Example 2:
- Price rejects resistance level (formed by the confluence of 4 previous days' high)
- Breaking below the previous day's low
- Selling opportunity, SL beyond the resistance level, TP at the lower support level, formed by the confluence of 2 box lows.
Note: In this case, the Risk:Reward ratio is lower than 1.
When using boxes, because it is reacting to price, it can have a tendency to be slightly lagging.
It is always a good practice to combine at least 2 different types of indicators in your analysis.
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해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
Join my mailing list jindaotai.com/joinme
관련 발행물
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.