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Boxes

Educational Series: Trading with Boxes (Part 2)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.
Education
by JinDao_Tai
Educational Series: Trading with Boxes (Part 1)Boxes are drawn on the chart of any timeframe, depending on the trader's preference. Typically, drawn on the - H1 timeframe identifies short-term, weekly trend and interim support & resistance levels - H4 timeframe identifies medium-term, monthly trend and key support & resistance levels - Daily timeframe identifies longer-term trend and major support & resistance levels. These boxes help traders identify momentum and is used as a trend-following indicator. However, these boxes do not predict or anticipate a move. Instead, it reacts to the price movement. Drawing the Boxes 1) Identify the Highs & Lows of the period (Day/Week/Month) 2) Draw a box encompassing the Highs & Lows with a box Basically, on the H1 chart, you would have drawn a daily candle (without tails or shadows). Support & Resistance levels with Boxes When the lows of 2 boxes align, this can form a support level. In another example, if a series of boxes form a high within the same area, this could form a resistance area.
Education
by JinDao_Tai
Sea Ltd stock analysis w/ boxes and Volume ProfileHi everyone, This time I am analyzing NYSE:SE stock movement using volume profile besides my usual boxes setup. NYSE:SE stock price has shown very persistent up-trend strenght for the past year. When we have the equity soaring up like NYSE:SE does, it is helpful to use Volume Profile to see a bigger picture. I added three volume profiles for different timeframes: 9 months, 5 months and 2 months. What does it show us? As we can see in the past 9 months the biggest trading volume occured around 273 level. That is where our long-term POC is. However, a decent volume profile started developing from 308 level and above. For the last 4 months the highest volume has been seen at 323 level. Both 2 and 4 month profiles have universal volume distribution with same POC level. That means that higher price level has been accepted and stock is consolidated on a higher time-frame. What now? As volume profile is dynamic, I expect long-term POC to migrate to 320 level. However, for that to happen we will need to see a lot of volume at 320, which is 7% lower than the current price. AND that would be happening at the uptrend support line, which is dangerous. IF that is broken, we could see a return to 273 POC to repair long-term profile structure. IF we continue higher from here, we would get unevenely distributed profile, which could be bad in the long-run. Let me know what you think of NYSE:SE movement and if it is sustainable. Trade wisely and good luck! ----------------------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise.
NYSE:SEEducation
by AyBe_Invest
2
Boxes trading strategy example. $ABNB stock.Continuing my tutorials on boxes trading strategy. This time let's analyze NASDAQ:ABNB stock price movement. Taking all appropriate steps as described in my first lesson: 1. Identifying long-term trend channel. 2. Finding supply and demand zones. 3. Drawing a box inside which price is moving sideways. 4. Buying demand zone bounces. 5. Watching for breakouts. There are some curious details in this stock's price movements. We can see there was an attempt for a breakout from the box on the session opening of July 1st. However, there was not enough volume for the move higher, so the breakout failed. As expected, the stock reversed to go lower in the followind days. Even though this stock is in a falling trend channel, it's very news sensitive stock. For instance, if there are positive news regarding COVID mitigation, we could see a major breakout from the falling trend. ----------------------------------------------------------------------------------------------------------------- Airbnb has been on my radar for a long time now. Personally, I think it's a great long-term investment and I've been buying the stock on it's way down. I believe it will be a great post-COVID play. ----------------------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise.
NASDAQ:ABNBEducation
by AyBe_Invest
My investment strategy. Example of my own $AMD position.I've been investing in NASDAQ:AMD since the last year. AMD is one of my biggest positions. For my long-term investgment portoflio I use fundamental analysis to evaluate stock buying opportunities. If I like the company I then use technical analysis to determine entries, exits and targets. Here is my technical setup on NASDAQ:AMD I use a combination of technical indicators. Here is my process: 1. Determine current long-term trend channel. 2. Find supply and demand zones to form a box inside which a stock is currently moving. 3. Watch for the box breakouts using volume as an indicator of move's worthyness. 4. Find new boxes after the breakouts using the same process. 5. Rince and repeat. This investment strategy is pretty flexible. You can day trade/swing trade inside the boxes. You can buy the breakouts when you identify them and sell in the next box. You can accumulate large positions at demand zones of multiple boxes for a long-term. Personally, for my long-term investments I add to positions after the bounce off of the demand zone and trim after breakouts when the move reverses to form a new box. --------------------------------------------------------------------------------------------------- Please let me know if you want to see a deeper dive into fundamentals in the future. --------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise.
NASDAQ:AMDEducation
by AyBe_Invest
RANGE BOXES4.4.20 I see that more and more people are following my videos, and I appreciate your interest and hope to provide value. There are certain things you must do for you won't find value from this. You will have a lot of questions when you open up a chart and try to reproduce my range boxes. This is a good thing, and if you persist you will draw these boxes perfectly fine before you know it. The fact that you would draw range boxes is a process that will give you subtle awareness that will benefit you in ways that will become apparent later. The trick is to start drawing the lines and to recognize that they will get better the more you use them.
BITSTAMP:BTCUSDEducation
by ScottBogatin
Using Boxes To Understand Support & Resistance LevelsOn any given time period, you can place a box from a wick and span it across the chart. No interference of a price level usually means that outstanding orders still exist. Thus, buyers or sellers may be present at that level again to fight opposite of the trend since they were just pushing from those levels before. It's a great gauge to understand how much price will struggle to pass through these distinct zones. For example, since Ethereum is bearish but found buyers at $89, $87, and $84, we can expect some support at these levels. The bigger the wick, the more it will struggle to pass through. This idea on its own does not indicate a bounce, especially because price failed to hold action above these levels. It just means it will fall less quickly in these areas, re-testing these same zones again. I made the first level green because it should be the easiest zone to pass through; small wick, with small amount of buyers at that wick before price turned over again. The second level is yellow, because the wick is larger and had substantial buyers following that wick's action. The third level is red, because that wick is the largest in the series and had a very large amount of buyer's following it.
BITFINEX:ETHUSDEducation
by MrDiamondHands
3