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Re: C Patrick post# 7549

Wednesday, 08/30/2006 7:08:59 PM

Wednesday, August 30, 2006 7:08:59 PM

Post# of 24326
C Patrick .. Allow me to explain the magic box according to my understanding and if I was wrong then I hope someone corrects me too..

to call any setup a magic box, two events have to happen:

Day 1 (Down Day):
red (black) candle near lower bollinger band
Aroon Down(8) = 100

Day 2 (up Day) :
white (green) candle
Aroon Down(8) less than or equal to 87.5

if both these events occure, then you have a magic box setup

however, it is not yet confirmed for entry..

it becomes a confirmed magic box whenever the Williams %R(9) crosses above the -50 (and stays there)

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