Ok I have enclosed the same box here but have zoomed in for a closer look.
This is how I play with the box. Looking at the daily and even the 4H there seems to be more wicks to the top rather than the bottom which indicates selling pressure. I this may break to the downside. Bit when it's rangin like this my bias don't mean squat so I have to keep my eyes open for both sides.
If prices head south I would need to see a break below the prices in the lowr yellow box. Then a retracement and then a continuation with an entry similar to that shown by the Megenta line.
If prices break to the upside I would look for the same thing.
So why would I do this?
Because everyone is looking at the same thing which means there will most likey be a false breakout. This is whee traders are slaughtered at the market. The false breakout triggers trades placed in these areas above and below the box. Then when the prices trade back into the box traders panic and exit with a loss.
So I wait for the breakout, a retracement and then a continuation to confirm the movement.
If prices do not retrace then continue well that's just a crying shame and I will have to catch the next ride.
Just my take on how I do it.
Let's se what you other folks have to say.
This is how I play with the box. Looking at the daily and even the 4H there seems to be more wicks to the top rather than the bottom which indicates selling pressure. I this may break to the downside. Bit when it's rangin like this my bias don't mean squat so I have to keep my eyes open for both sides.
If prices head south I would need to see a break below the prices in the lowr yellow box. Then a retracement and then a continuation with an entry similar to that shown by the Megenta line.
If prices break to the upside I would look for the same thing.
So why would I do this?
Because everyone is looking at the same thing which means there will most likey be a false breakout. This is whee traders are slaughtered at the market. The false breakout triggers trades placed in these areas above and below the box. Then when the prices trade back into the box traders panic and exit with a loss.
So I wait for the breakout, a retracement and then a continuation to confirm the movement.
If prices do not retrace then continue well that's just a crying shame and I will have to catch the next ride.
Just my take on how I do it.
Let's se what you other folks have to say.
DislikedIf you look at the beginning of this thread - post # 2 I have some S/R lines in various areas of consolidation.
This is a chart of EUR/USD. It's been forming a coil I believe since 11/14/2007 . At time I am posting is around 9:00 AM so I really don't know what could be the end of day for this pair. Anyway, I formed a box. Obviously the market is going to break that box and push the price somewhere.
My question to all of you is......
How would you play this box?????
PeaceIgnored
Nothing is impossible, with a willing mind!