How does BreakerBox+ work?
Quick answerIt watches the last 10 candles: when their high and low sit within 3 ATRs (3.5 on the 1-hour and 4-hour), the stock is in a box, coiling. A close more than 0.3 ATR above the top that passes three fakeout checks is the breakout.
The details
- The box: 10 candles (12 on the 15-minute) within 3 ATRs of each other.
- The breakout: a close more than 0.3 ATR above the top.
- Three checks against fakeouts: the close is above the 50 EMA, it closes in the top 30% of its candle, and it did not gap too far from the last close. A break that fails one is blocked, and the stock rests.
The longer it coils, the better the box (the colours). The trade: stop and targets.
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