How's it going, everyone? This video is going to be over the box setup, which is essentially an entry model, but can also be used for bias and understanding where the market is reaching for. If you haven't watched Alex's video on this, please check it out.
I'll put it in the top right hand corner. So I'm going to do a few drawings to hopefully help you guys understand how these concepts all go together and why it would work. So essentially, what we are going to be doing is accumulation, manipulation, and then distribution, right? So we'll have some sort of consolidation, aggressive move out, aggressive move back in, and then we'll get our distribution. So this is the box setup.
So now how do you get a box setup from this? Well, you're going to mark out your consolidation range. So from here to here and here to here.
Now what you're going to do with that is expand these horizontal lines out. And what you will look for is not so much where we're consolidating, but where we get aggressive moves out of a range and aggressive moves back into a range. There will likely be a BPR or balanced price range in this area.
If you haven't seen my video, I'll also link that up there. But what you're looking for is aggressive out, aggressive in, and a retest of that consolidation area before getting long. Similarly, if we have a short setup, it will look something like this. How does this all work out?
Well, we're running sell side liquidity here. to get a move higher running by side liquidity here to get a move lower. This is also where you get your broadening formations and it all just kind of works out together.
This is one of my favorite entry models and honestly, a great way to tell where price is heading. So let's go get into a few examples. If for some reason this doesn't make sense yet, hopefully the examples clear things up. And if they don't, I can make a more detailed video on this to get a few examples or start at the lower time frames. And then we will work our way up to the higher time frames.
I prefer this model on the lower time frames just as you get to see it more and it plays out a little bit quicker. But if you notice here, you don't really want to focus so much on what the consolidation area is. You just want to focus on where you get aggressive move out and back into a range. So if you're looking right here, you can see we have a range right here, aggressive move out as shown by a fair value gap and aggressive move back in shown by a fair value gap.
Now, what you can do is mark out your consolidation range. which is this. You can use the bodies here.
And then what you do is, as shown before, we have consolidation, manipulation. We want some distribution. So we want to see a retest of this side of the range.
What do we get? Retest of this side of the range. And if you notice, it lines up pretty nicely with an ICT setup. And your entry would be this line here, stop at this low, and then you'd want to target.
you know, the first high right there or higher if you have a higher timeframe point of interest. So now if we just keep moving down, do we see any more examples? Well, right here you can see we're chopping around aggressive down, aggressive up.
Where is our previous low? Right here, right? So where am I getting that? We have consolidation, aggressive down, aggressive up.
This is what's important. Aggressive down, aggressive up. Retest that previous low, go higher. Here's a quick little tip, not only for the box strategy, but just ICT concepts in general, is right here we get an aggressive move down, not super aggressive, but still moving down below this low, aggressive move back up.
A lot of people will be looking long for a retest of this area, but what you want to do is I prefer to catch them right away, right? So if it's somewhere in here versus all the way over here, and the reason for that being is right now we're on the buy side of the curve. right? So we're moving up over here.
We're on the sell side of the curve going down. Normally you're seeking liquidity, right? So it's more likely to reach for this low than it is to stop and reverse right here.
So if you're getting caught in a lot of trades where you think that it is going to reverse and it just blows right through, you're trying to enter long on a sell side of the curve and enter short on a buy side of a curve. Now back to other examples, you can see right here, we have a area of consolidation, right? Fill this fair value gap.
reaching down, most importantly, aggressive down met with aggressive up, where are we looking to retest this area, these previous lows, this would be your entry long. And here you could run it to, you know, the bottom of this candle body of this candle, whatever you want to do. But that'd be your entry long right there. And you'd be targeting these highs, or whatever point of interest you have.
Now you might be wondering, How can this give me bias? Or... How can I use it other than the lower time frames?
The way I use it is I'll use the four-hour or one-hour charts to determine a bias. Really, I just focus on displacement, similar to displacement, lack of displacement, VPR, etc. If you notice, we have a consolidation range here.
We have an aggressive move down, an aggressive move back up. Those are probably the most important, but if you notice, we take that previous low. After we break above.
this area, we retest this previous low, there is your long entry, and from there you would look to a lower time frame to reduce your risk and then target the other side of this consolidation area. So looking at this I would be able to determine a bullish bias because of this displacement back into the range. Here's another example where user discretion comes into play with using the bodies versus the wicks, and if you notice we have this big area right here where we are consolidating or a range, right?
What happens when we break through that range aggressively and come back in, you can see it's aggressive by using fair value gaps, is we get a retest of these fair value gaps or BPR, right? And if you use the bodies right here, you can notice we never close below here after we get our aggressive move back into the range. So then you could use this as your entry.
with the lower time frame stop to target the other side of the range. I hope this video helps out. If it does or if you have any other ideas for videos that you want to see please leave them in the comments below and I hope you have a great day. See ya!