Markets don't move randomly — they move in repeating structural blocks. Every strong impulsive move originates from a specific price range where a large quantity of orders (institutional supply or demand) was absorbed before price expanded away. This origin range is the Quantity Box (QB).
The theory behind QB is simple: when price returns to revisit a zone that shares the same structural characteristics as a previous QB (similar range size, similar consolidation behavior, similar location relative to a liquidity sweep), it tends to react the same way the original box did — because the same type of order flow (quantity) is likely sitting there again.
How a QB Forms
Consolidation/Base – Price ranges sideways for a period, building a box of roughly equal highs and lows. This represents accumulation or distribution — a quantity of resting orders.
Liquidity Sweep (L-Sweep) – Before the real move, price often wicks below (or above) the box to grab stop-loss liquidity and trap late sellers/buyers. This sweep is a key confirmation that the box is "loaded."
Expansion – Price then explodes away from the box in the opposite direction of the sweep, leaving the QB as the origin of the impulsive leg.
Repetition – On the retracement leg, price often returns to a new zone with the same structural DNA (same box-size ratio, similar sweep-then-reversal pattern) as the original QB. This is where the pattern is expected to repeat.
Applying It to the Chart
On the left, the gray zones mark the original supply/demand structure where price consolidated before the sharp drop and subsequent rally.
After the drop, price built a base (rounded accumulation curve) and expanded upward through a repeating series of smaller QBs, each one launching the next leg higher.
Price is now approaching a new gray zone near the recent high, marked with a red circle — a level that structurally mirrors the earlier supply zone on the left.
Since this QB sits at a supply-type location after an extended rally, a bearish reaction is anticipated here, provided a bearish confirmation pattern prints at the zone (hence the "Need Bearish Pattern Here" note).
Key Rules for Identifying a Valid QB
Look for a clear range/box with defined highs and lows (not random noise).
A liquidity sweep beyond the box boosts validity — it shows stops were cleared before reversal.
Compare the box's proportions (height relative to the preceding move) to prior boxes on the same chart — structural repetition, not just visual similarity, is the key.
Wait for a confirmation candle/pattern (engulfing, pin bar, break of internal structure) inside or at the edge of the new QB before treating it as active — the box alone isn't an entry signal, it's a zone of interest.
The theory behind QB is simple: when price returns to revisit a zone that shares the same structural characteristics as a previous QB (similar range size, similar consolidation behavior, similar location relative to a liquidity sweep), it tends to react the same way the original box did — because the same type of order flow (quantity) is likely sitting there again.
How a QB Forms
Consolidation/Base – Price ranges sideways for a period, building a box of roughly equal highs and lows. This represents accumulation or distribution — a quantity of resting orders.
Liquidity Sweep (L-Sweep) – Before the real move, price often wicks below (or above) the box to grab stop-loss liquidity and trap late sellers/buyers. This sweep is a key confirmation that the box is "loaded."
Expansion – Price then explodes away from the box in the opposite direction of the sweep, leaving the QB as the origin of the impulsive leg.
Repetition – On the retracement leg, price often returns to a new zone with the same structural DNA (same box-size ratio, similar sweep-then-reversal pattern) as the original QB. This is where the pattern is expected to repeat.
Applying It to the Chart
On the left, the gray zones mark the original supply/demand structure where price consolidated before the sharp drop and subsequent rally.
After the drop, price built a base (rounded accumulation curve) and expanded upward through a repeating series of smaller QBs, each one launching the next leg higher.
Price is now approaching a new gray zone near the recent high, marked with a red circle — a level that structurally mirrors the earlier supply zone on the left.
Since this QB sits at a supply-type location after an extended rally, a bearish reaction is anticipated here, provided a bearish confirmation pattern prints at the zone (hence the "Need Bearish Pattern Here" note).
Key Rules for Identifying a Valid QB
Look for a clear range/box with defined highs and lows (not random noise).
A liquidity sweep beyond the box boosts validity — it shows stops were cleared before reversal.
Compare the box's proportions (height relative to the preceding move) to prior boxes on the same chart — structural repetition, not just visual similarity, is the key.
Wait for a confirmation candle/pattern (engulfing, pin bar, break of internal structure) inside or at the edge of the new QB before treating it as active — the box alone isn't an entry signal, it's a zone of interest.
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Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.