There is one setup I use almost every day. It's stupid simple, insanely reliable, and the reason I get days like this, this, and this. But you know what? It didn't just work for me. It's working for traders who started watching this channel. People who were stuck exactly where I was 10 years ago. By the way, my name is Sylvia and I've been in the trading game for over a decade now. I know it's hard to believe, but I'm not going to lie to you. The first three years of my trading career were brutal. I was obsessed with learning everything. Chart patterns, Fibonacci levels, moving averages. I tried it all. I studied charts every free minute I had before work, after work, on vacations, on Sundays when I should have been relaxing. There wasn't a minute I wasn't thinking about trading and charts except while I was asleep. And then I would dream about trading. But you know what? The more I studied and the harder I tried, the worse my trading got. Month after month. Worse, not better. I swear if I had a job at any cheap burger chain, I would have made more money than with trading. But watching my account bleed wasn't even the worst part because money comes and goes. What really hurt me was the time I put in. Time with zero reward. Time that I can never have back again. Deep down, I felt stupid and embarrassed. How come everyone else is figuring it out except me? I hit a wall. But there is one trait I still remember to this day like it was yesterday. And I'm going to show you what happened just in a moment. But that was the beginning of everything shifting. It started with something my mentor said to me. And honestly, that hit me harder than any losing trade I've ever had. He said, "The simpler your strategy is, the more decisive you will become." and that's when you will start winning. And he was right. I was drowning in information. I didn't need more tools, but less noise. So, I stripped everything clean and focused on a stupid simple three-step strategy called the box strategy. For the next 6 months, I traded one setup only, every single day. And that's when I started going from red weeks to break even weeks and eventually to profitable weeks month after month. And today I will share with you the exact steps. And I know that it's going to work for you regardless of the market you're trading. Now, I promised that this strategy is stupid simple. And I mean that. All you need to know is how to draw a box. Seriously, even my four-year-old son knows how to do that. So step number one is drawing the box. Whenever you start your trading day and regardless what market you're trading, your first step is to open up the chart, look to the left, and see what was the previous day's high and the previous day's low. And then we're going to connect these two zones right here. Just like that. The high of the box and the low of the box are going to guide us through the remainder of our trading day. So, typically when the market opens within the first few minutes, the price is going to test either the previous day's high, which is the top of the box, or the previous day's low, which is the bottom of our box. As we can see here in this example, the market opened and goes immediately straight to the upper part of the box. Now, I'm going to be honest with you. When I first started trading, I didn't pay attention to these zones at all. I would just look at this and I would think the market looks like it's going up. It looks like a nice breakout, higher highs, higher lows. And I would trade that breakout to the upside. And I would enter the trade right here on the long side. And I would put typically my stop-loss just here underneath. Look like a very decent setup and plenty of momentum, right? But here is what would typically happen most of the time. Boom. Got stopped out. And typically I would not understand why I'm getting stopped out if there was plenty of momentum. And I would start thinking the market is right now against me. It's trying to get me and I would end up really frustrated without really understanding what's happening. But here is the point. There is a key information that I've been missing this whole time. The top of the box of the previous day's high typically represents the largest amount of sellers and the most committed sellers. So the price will try to consolidate around this zone and this is where institutional sellers and traders will place their sell orders and unfortunately we as retail traders will try to buy into the strength where they're loading off their positions around this zone. Which leads me to the rules of our strategy. Number one rule and the most important rule is we do not buy at the top of the box. Again, the reason for that is because the previous day buyers around this zone got exhausted and this is where the biggest amount of sellers are placing their sell orders. So you don't want to be the liquidity to institutional traders. The second rule is we do not sell at the bottom of that box. The reason for that, the lower part of the box represents the biggest amount of buyers, institutional buyers and the most committed buyers. And typically when the price consolidates and tests this zone, it is going to try to reverse if there are enough buyers around this area. We're going to flip the script. We want to buy at the low of the box just like institutional traders are doing it and we want to sell at the high of the box. This is where most stops are sitting and institutional traders know that. They know that retail traders are trading breakouts and they know the exact support and resistance areas where typically a retail trader like you and I would buy. Another very important rule, you see that box and when we draw through the middle of that box a line, this is our midpoint. Just remember that. Do not ddle in the middle. This is extremely important especially in the first 10 to 20 minutes where the market opens because the market is trying to find the biggest amount of sellers and buyers and in the middle of the range is where the most noise is and you don't want to be caught into low premium low quality setups and get stopped out for no reason. Okay. So, I'm going to extend this box right here so that we can see better these premium zones. And remember what we said. We're right now in the middle of the box. Therefore, we do not have a trade. Instead, I'm going to replay and we want to see if one of these premium zones, the top of the box or the bottom of the box gets tested again. If the price goes towards one of these areas, as we can see, the price went straight into this zone to the lower part of the box. This is the area where we want to be observing for a potential long setup. And I'm going to be honest with you, the first time I started doing it, my heart was racing. I was so nervous because of course what I was learning in the past was don't catch the falling knife. The market is going down. The market is going to crash. And for a very long period of time, I was doing it wrong. And therefore it was very difficult for me to kind of have this switch in the brain and start looking for longs around this area. So we're not looking to catch the falling knife. Of course, we are going to be looking for a very specific candlestick formation and setup that I'm going to show you just in a moment. And this is going to give us the idea that there are more buyers stepping in and serious buyers stepping in wanting to protect this zone. Now, let's go ahead and replay to see what's going to happen around this area. As we can see, the price keeps going further lower, and it looks pretty weak. It looks like lower lows, lower highs right now. And typically, if I see that, I would be really concerned, and I would even start shorting. And this is where I'm going to get stopped out and get extremely frustrated and not understanding what happens. But remember what we said typically around this premium zone this is where the biggest amount of buy orders and stop orders are sitting. So institutional traders know that therefore they're going to try to reverse the price further higher. You see the price reversed immediately around this zone again and shoots straight up towards the midpoint of the range and again testing the lower part of the box again. And what happens next? Shoots straight into this upper part of the box. Broke out and going all the way back down to test this area again. Let's go into step number two because I want to share with you what exactly we're looking at and what is the signal for our entry. And I'm going to show you that on two live trades. So, let's summarize. First step number one is to box in the previous days and lows whenever you get up and you're at your computer ready for your trading day. And that's exactly what I'm going to do right now. And for that I'm going to use the YM the Dow futures and the five minute chart. Now you can use any time frame that you like. You can use the 15minut chart, one hour chart. It does not matter. What matters are the premium zones that we're going to box in. And some of you have been following the channel for a little bit. You know that I love the one hour chart as well because it's just much cleaner and I also love swing trading. But for this example, I will stick with the five minute chart. So I'm boxing in the previous days high and low. So I also want you to pay attention to the price action of this previous day high which is the top of our box. You see how the price was trying to break out of this zone a few times. You see here a John week candle sellers took over and pushed the price lower. Then we see here a little bit more of a selling happening and again another false breakout followed by a bigger red candlestick and sell off and eventually here again one more time. So actually four attempts of the market to break out but sellers took control. So remember what we discussed this zone the higher part of the box represents the biggest amount of sellers and most committed sellers. Therefore we do not want to be buying at this zone. Instead as soon as the market opens I'm going to be observing if the price tests this zone for a short entry or if the price test the lower part of the box for a long entry. And I'm going to hit the replay button now so we see what happens. Okay. Okay, so the market opens and we're heading straight to the upper part of this box. And remember, we're looking for a short entry. So, in order for me to short, I want to see here a little bit of a rejection. I want to see one green and one red candlestick and especially a John Wick candlestick. This is going to give me the clue that there are more sellers stepping in again trying to reverse the market and push the market further lower. And that's exactly what we see. You can see here one first green candlestick with wick on the top and one red candlestick followed by a little bit of a choppy price action and another wick on the top right here. slightly broke above our box again just to pick everyone else's stops or people who are trying to chase and now as we can see we have one first red candlestick that is a John Wick candlestick so the entry happens as soon as the price starts going below the low here and our stop loss is going to be placed slightly above now I don't want to choke the stop loss too tight because as we can see this area has been tested a few times and it appears that there is liquidity and sellers and institutional traders are grabbing liquidity just to reverse the price lower. So always keep that in mind when you're putting your stop losses. You don't want to have two tight stop losses right exact at the top because you might get stopped out for no reason. So now I'm going to place a short order and we're going to see what happens next. Now my stop loss can be placed slightly above the high of this candlestick. And so in terms of targets, typically I would look at the low and this is one target you can use for your potential exit or you can use this previous days low where we can see a reversal. And there are a few ways how you can manage your trade. So you can trail your stop or you can place a takerit order around this zone and in this case you would be out for a profit as soon as this price is reached. Now, we see here a little bit choppy price action, a little bit more red, green, red, green. This is a typical choppy sideways type of a price action. But as long as the price is staying in this range, we're fine. So, there's nothing I would do at the moment. As soon as we break below this zone right here, I can move my stop loss to break even so that I'm out of the risk quicker and so that I don't have to worry if buyers step in and the price reverses. Okay, so the market is breaking further lower and I'm going to move my stop loss exactly where my entry is slightly below and so I'm out of the risk in case we see more choppiness and the market reverses. I would be out of that trade. In terms of takerit, I am going to move the takerit around this zone and see if we can get out because this looks like this has been tested a few times and this would be a very decent risk versus reward type of a situation. As we can see, I got out of the trade. My takerit was hit. And by the way, this is an average trade in a very choppy price action as we saw. that even in these type of days, we can have a pretty decent profit if we stick with our rules, which is not buying at the top and not short selling at the bottom. And so I'm done for the day. This was a pretty decent profit. Therefore, I don't care what the market does after that. I would just going to draw my box the next day. Now, remember, I entered here a short and closed around the lows. And so the next day, as soon as I'm on my trading desk again, ready to wait for the market to open, I'm going to go through the exact same process. I'm going to box in that previous day's high and low. Just like that. And as we can see, the situation looks a little bit differently now. We broke out of the low of this box. And this is a question we've been asked a lot. What happens when we break out of the box? And this is a very good example and a trade that I'm going to show you how to trade that if it breaks out of the box. So, as we can see, we broke out of the low here and we actually immediately reversed and tested this low again. And so, as soon as the market opens, I want to see if we're going to test this area as well and if sellers take control of the situation as well, because that's what happens yesterday and the day before. We saw here that there are not enough buyers and we also saw right here that there are more sellers stepping in. This is why I've been shorting and so the plan remains the same. I want to see if this low of yesterday gets tested again. If the price comes around this area, I'm going to be ready to watch for a very specific candlestick formation and hit the short button as well. Now I'm going to replay and see what happens. As we can see, the market opens and tests straight this low here, this area. And I'm sticking to my plan. I want to see if we get a retest around this area because this was the previous low. And it looks like the market slightly went above pre-market right here. Stopped everyone out. So, I'm going to observe this area. And remember, we're here in the market. We're not working with a ruler. Sometimes the price might go slightly above or stop slightly below before it actually reverses. So what we want to do is observe the price action. So the market shoots straight into this area and I want to see now if we see one red candlestick because this is going to give me the confidence that there are more sellers stepping in around this area. Again, this was the low from yesterday and this is also a resistance area here that has been rejected pre-market. Now, we finally have one red candlestick and the entry happens actually as soon as we take the low of this first red candlestick. So, you see here this was the wick on the top of that candlestick a John Wick candlestick and this happened exactly around this resistance zone. So you see that was the high right here and also this is exactly the area of yesterday's low of our box. Therefore I want to go short and I'm going to hit right now the sell button. Now stop loss can be placed slightly above and in terms of takerit you can target as well the lows of this area and put a takerit order or you can trail your stop. So, a lot of times I prefer to drag my stop loss towards break even, especially if I see already a move towards my direction. This way, I'm out of the risk and I don't have to worry if the market decides to reverse because we're in a very volatile downtrending price action and I just don't want to get stopped out and turn a winning trade into a losing trade because honestly that feels for me personally the worst. So, we see that we go further lower. If you want, you can also here move your stop loss further lower. And now that we have a very decent move to the downside. I'm really going to keep trailing this stop so that I am out of the risk as soon as possible. And as we can see, first green candle. I got taken out and that was a very nice profit here with very nice risk versus reward four hours. So four times on my risk. And again, this is how you can use these zones of the box. the previous days highs and lows as an area and as a guide and observe the price action and yes sometimes the market will drop below but then again we're observing what is the price action around this area and retest of that area as well so I hope that made sense for you if you have not subscribed to our weekly gains guide we send uh free analysis each week you do so the link is in the description box thank you so much for watching and I cannot wait to see you back here on our channel again.