Range box
A range box is a rectangle drawn around a sideways market, using two touch points along the top and two along the bottom. You trade the break out of it, never the inside.
In depth
Draw it only after price has gone sideways. Two highs that line up, two lows that line up, join them, and copy the box forward over live price. Use wicks or bodies, pick one, and stick to it. Waiting for a fifth touch gives you a tidier line and an older range.
Nothing inside the box is a trade, because entry and stop sit too close together to pay you. The box runs 100 to 102. You enter at 102.20 on the break, your stop is a close back below 101.80, and the target is 104, one box width up. The trigger is a candle closing beyond the edge, never a wick through it.
Why it matters
The box turns a vague read of chop into two prices and a plan. You know the level that has to break, the target if it does, and the price that says you were wrong. It also tells you when to do nothing, which is most of a sideways session.
Ranges are where accounts leak, so the calendar is the page to watch. Every day shows its profit or loss from your broker sync, and choppy weeks look different from trending weeks. Automatic tags mark scalps and fast re-entries after a loss, which is what a range tempts you into.
Frequently asked questions
Two along the top and two along the bottom. More touches give a tidier drawing and an older range.
One box width, measured from the edge that broke. A range fills back in, so do not ask for more.
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