The Reading Routine

Everything before this point has been about what the ladder is. Part IV is about using it. This chapter gives the routine — the sequence of steps a trader follows at the start of a period and at each close — and it gives them in an order that keeps the outer box in charge. The routine is short. It is meant to be done the same way every time, so that the reading comes from the chart and not from the mood.

Before the Routine: Choose Your Boxes

The routine needs three boxes named in advance.

The trading box is the timeframe you take trades on. For a day trader it might be the hourly candle; for a swing trader the daily; for a position trader the weekly.