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.
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.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join my mailing list jindaotai.com/joinme
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.