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.
