The Outer Box tools

The Outer Box · Part II: The Range

Chapter 13

The Extended Ladder: R2, R3, S2, S3

A confirmed breakout tells you a trend has started. It says nothing about how far the trend will go. For that, the ruler has to keep going past the box, and the way it goes is the simplest possible way: it repeats.

The Range, Repeated

Take the range — R1 minus S1 — and stack it on top of the box. The new range starts at R1 and ends one full range higher. That upper edge is R3, at 200% on the ruler. The center of the new range, halfway between R1 and R3, is R2, at 150%.

Now stack the range below the box. It starts at S1 and ends one full range lower. That lower edge is S3, at −100%. Its center, halfway between S1 and S3, is S2, at −50%.

Continue reading

This chapter is for members. If you have an account, sign in to keep reading.