▲ STRAT_01 · BOX_THEORY · PRICE STRUCTURE · RANGE TRADING
BOX THEORY.
Structure-based range trading. Use the previous day's high and low as fixed boundaries.
No indicators. No noise. No guessing. Just price structure and discipline.
SETUP CHART
DAILY
PDH / PDL
EXECUTION
5M / 1M
intraday
ENTRY ZONES
2 OF 3
edges only
OBSERVATION
9:30–9:45
then active
STOP SIZE
TIGHT
outside edge
DIFFICULTY
●●○○○
beginner
RISK PROFILE
SMALL
paper cuts
› SETUP — DRAW THE BOXSTEP 1
Open the daily chart and mark yesterday's high (PDH) and low (PDL).
Drop a rectangle connecting both levels.
Draw a midline through the center — this is your noise boundary.
Drop to the 5M / 1M chart for execution.
› THE BOX — STRUCTURESTEP 2
PDH · PREV-DAY HIGH = RESISTANCEPDL · PREV-DAY LOW = SUPPORT
› ENTRY RULES — TRADE THE EDGESSTEP 3
▼ SHORT · TOP OF BOX
Sell the rejection at PDH.
TRIGGERPrice reaches top of box and stalls / rejects.
ENTRYAt or near PDH
STOP↑ just above the high
TP 1→ midline (safe)
TP 2→ bottom of box (full)
▲ LONG · BOTTOM OF BOX
Buy the reaction at PDL.
TRIGGERPrice reaches bottom of box and supports / reacts.
ENTRYAt or near PDL
STOP↓ just below the low
TP 1→ midline (safe)
TP 2→ top of box (full)
› BREAKOUT MANAGEMENTSTEP 4
If price opens outside the box, do not react.
Wait 10–15 min after 09:30 for structure.
If a new high or low pivot forms → REDRAW extend the box.
The box is dynamic. It adjusts to new structure.
› WHEN NOT TO TRADESTEP 5
✓ IDEAL
Clean range day
Respect of PDH / PDL
Clear edge reactions
✗ AVOID
Middle of the box
Chop without structure
Strong breakout trend days
› RISK MANAGEMENTSTEP 6
Small losses are paper cuts. Entries sit at extremes, stops are tight, the range is large — that asymmetry is the entire edge.