STRATOMATION ··· STRATEGY 01 / 07
TYPE RANGE FAMILY STRUCTURE STATUS ▲ ACTIVE REV v1.0
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 BOX STEP 1
  1. Open the daily chart and mark yesterday's high (PDH) and low (PDL).
  2. Drop a rectangle connecting both levels.
  3. Draw a midline through the center — this is your noise boundary.
  4. Drop to the 5M / 1M chart for execution.
› THE BOX — STRUCTURE STEP 2
PDH · SELL TOP OF BOX MIDLINE NO-TRADE ZONE PDL · BUY BOTTOM OF BOX BUY SELL 9:30 10:30 12:00 14:00 15:45
PDH · PREV-DAY HIGH = RESISTANCE PDL · PREV-DAY LOW = SUPPORT
› ENTRY RULES — TRADE THE EDGES STEP 3
▼ SHORT · TOP OF BOX

Sell the rejection at PDH.

TRIGGER Price reaches top of box and stalls / rejects.
ENTRY At 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.

TRIGGER Price reaches bottom of box and supports / reacts.
ENTRY At or near PDL
STOP ↓ just below the low
TP 1 → midline (safe)
TP 2 → top of box (full)
› BREAKOUT MANAGEMENT STEP 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 TRADE STEP 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 MANAGEMENT STEP 6

Small losses are paper cuts. Entries sit at extremes, stops are tight, the range is large — that asymmetry is the entire edge.

STOP
TIGHT
TARGET
WIDE
R:R
ASYMMETRIC
PDH
SELL ZONE
PDL
BUY ZONE
MIDDLE
NO TRADE
STOP
OUTSIDE BOX
TARGET
MID/OPPOSITE
BREAKOUT
WAIT & REDRAW