Hi Spark
The timeframe can be anything that you want to apply, determined by the timeframe you have set for the trade. If you want to trade a short timeframe then use a short timeframe chart to look for the support/resistance boxes, if looking to trade a long timeframe then use a long timeframe chart. The Key is targeting breakouts or breakdowns of prior support/resistance trading ranges with increased volume. Whether you want to trade ticks on the Futures intraday, a stock for scalps intraday or anything longer term the idea is to identify breakouts or breakdowns of prior support/resistance levels for entries and exits. I use it a lot when looking at stocks intraday. Here is a look at BORL on Friday that had a morning breakout of 7.25 with an increase in volume, then again breakout 7.50 with increase in volume. If I had entered anywhere over 7.25 I would have used a breakdown of that box as a stop limit. Once over 7.50 I might have added to the position. As long as 7.25, or perhaps the breakout of resistance at 7.46, did not breakdown then the stock would be a hold long. Do you see why I mention 7.46, it was the morning breakout that held later day support, so the box from 7.30-7.46 held support Above the box after it broke out on higher volume, signaling a continuation of the uptrend and a continued hold. You could use the intraday signals for an entry and then also change your targeted ranges to a longer term trade if the trend continues higher, adjusting from a short term entry to a longer term hold determined on whether a trading range box has broken down support or continues to uptrend. The idea is to Stay in the trend as long as possible, and perhaps adding to your position along the way, but stopping out when a level (box) that should have held support (like your entry) has broken down.
I hope this helps. Sincerely, Bob :^)
The timeframe can be anything that you want to apply, determined by the timeframe you have set for the trade. If you want to trade a short timeframe then use a short timeframe chart to look for the support/resistance boxes, if looking to trade a long timeframe then use a long timeframe chart. The Key is targeting breakouts or breakdowns of prior support/resistance trading ranges with increased volume. Whether you want to trade ticks on the Futures intraday, a stock for scalps intraday or anything longer term the idea is to identify breakouts or breakdowns of prior support/resistance levels for entries and exits. I use it a lot when looking at stocks intraday. Here is a look at BORL on Friday that had a morning breakout of 7.25 with an increase in volume, then again breakout 7.50 with increase in volume. If I had entered anywhere over 7.25 I would have used a breakdown of that box as a stop limit. Once over 7.50 I might have added to the position. As long as 7.25, or perhaps the breakout of resistance at 7.46, did not breakdown then the stock would be a hold long. Do you see why I mention 7.46, it was the morning breakout that held later day support, so the box from 7.30-7.46 held support Above the box after it broke out on higher volume, signaling a continuation of the uptrend and a continued hold. You could use the intraday signals for an entry and then also change your targeted ranges to a longer term trade if the trend continues higher, adjusting from a short term entry to a longer term hold determined on whether a trading range box has broken down support or continues to uptrend. The idea is to Stay in the trend as long as possible, and perhaps adding to your position along the way, but stopping out when a level (box) that should have held support (like your entry) has broken down.
I hope this helps. Sincerely, Bob :^)
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
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