What is box consolidation and how to trade using box pattern and make money

By hitradeoffical

Updated on:

 About this image :-

 

In this image you can see the chart of a stock and than start consolidation in box pattern and than after some time breakout is take place and in this post we learn what we can do after the breakout for making good profit.

Welcome to this post now keep learning and careful learning.

What is Box Pattern :-

The pattern which is like equal a box that is called box pattern. The box pattern simply means price consolidation in same range like you can see our post image.
 
This is our definition of box pattern but if you want to make money with the help of trading than you need live experience and with the help of our this post you can make money if follow our rules.
 

What is box consolidation :-

When price in range and than if price is long time in range than for box and if price not breakout this box that is called box consolidation.
 
If you trade in live market using price action or strategy than box consolidation or consolidation is must important for you with the help of this you can make money in form of profit.
 

How to start consolidation in box pattern :-

When our price is form long time range than in chart start consolidation in box pattern.
 
The consolidation is simply meaning is consolidate any thing but here price consolidate also consolidate in a range.
 
If price consolidate in range and than form a box pattern. This is also known as range pattern, consolidation, box pattern, etc.
 
This is the process of start consolidation in box pattern.
 

How to find box pattern in chart :-

If you want to find box pattern in chart than you must follow these line
 
The first is open your top 500 stocks list and watch it.
The second is when any stock form like our post image pattern and price than make it.
The third is draw a higher and lower range you can also use rectangular pattern.
 
This rectangular pattern is called box pattern.
 
This way you can easily find box pattern in chart and it is two must easily if you see our post image is properly. But on the basis of finding process don’t trade in any side,
 

How to find breakout in box pattern :-

First to first if you find breakout in box pattern than you must need to box pattern so first you mark box pattern and make a special watchlist and than
 
See daily your this special watchlist and when any movement take place like our post image than watch carefully and keep watching.
 
Here movement meaning is change of price with respect to before price and you can find movement with the help of % change if  %change is more than you can say in this chart movement,
 
When movement is take place than see your higher price and compare this current price if current price closing is greater than higher price than range of higher price you can say that breakout is form.
 
This way you can easily find breakout in box pattern. It is some part of live market so when you experience in live market than may be you learn more so keep learning.
 

How to make money using box pattern :- 

If you want to make money using box pattern than first to first you need lots of discipline and than
 
You must focus on live experience and than at least see daily chart minimum 2 hours. 
 
This process follow continue and also you can modify according to you.
 
Than if follow every day, every time, every where than you make money using box pattern. But in trading field not easy to make money so you try to daily new things and note it and start back test.
 

What is the profit of box pattern :-

This box pattern is profitable strategy and its work on high accuracy also high trending in market and this is the profit of box pattern.
 
Here the main profit of box pattern is making profit with low risk and high reward and you also write down this point don’t try to buy without retest or price action in any pattern.
 
Its profit is also it is easily or easily to use in live market so these all are profits of box pattern.
 

How to trade using box pattern :- 

If you want to trade using box pattern than you must need box pattern so when you read our all titles than I hope you all are knowing how to find box pattern than mark your box pattern
 
The mark chart open now and watch carefully and when any movement is take place than watch carefully and also observe it.
 
Here you patience is most important and than when movement is take place than see price action and also you remember don’t trade on first breakout.
 
If price action and movement both direction is same than mark your stop loss and if your stop loss is your range.
 
Than you can trade using the box pattern and you can make money using the box pattern.
 
Note :-  If any retest is form and make good candle sticks and you can trade in first breakout.
 

When we can buy using box pattern :-

If any breakout is take place and read our all rules if obey our all rule than you can buy using box pattern.
 
Here, the most important thing is trap and you must try to avoid trap and maximum trader lose money due to trade so you must learn and read our all rule than you buy otherwise you can avoid this trade.
 

When we can sell using box pattern :- 

The box pattern is work on both sides like sell or buy sides and if you want to sell using box pattern than you learn something.
 
The first is when any breakdown is form than see price action that chart if price action bearish than you can sell but
 
Before selling you must measure your stop loss because in trading field capital is more important not profit because we know than we can earn next time profit but save capital is more important.
 
The most important thing is your discipline if you follow discipline than you can make money.
 
The the last thing which is most important for everyone if price action and movement of price both direction are same than. This trade is profitable you can invest more money. 
 
If price action and movement of price both direction is different is not same don’t use more money in this trade.
 
I hope using these all points you can make money with the help of selling.
 

What is stop loss measuring :-

The stop loss measuring is process for measure your stop loss. When we want to trade in any direction that time we also want to a particular stop loss so with the help of logical and technical basis we measure stop loss that is called stop measuring.
 

Why we need stop loss in trading :-

When you start trading and that time if you want to low losses during trading so we need stop loss. 
 
The first need is stop loss is avoid more losses.
 
In our trading field here not always we can book profit here some time loss and some time profit and you want overall profit so we need stop loss.
 
Like that you trade in any direction and that care your trade is going in opposite direction and that time if your want low losses so you need stop loss.
 
For these region we need stop loss in trading. And the most important point is for all trade need stop loss if he want make profit forever.
 

Is box pattern is profitable or not ?

Yes, box pattern is profitable. If you trade using all rules and discipline than the box pattern is profitable.
 
And in second language that profitable or not it is fully depend upon you if your practice is good on that strategy or pattern than it is profitable for you otherwise may be some pattern is not profitable for you.
 
You need to focus on practice and back test before live market. Than you can focus on profitable or not.
 

What is the result of box pattern in live trade :-

The result of box pattern is live trade is very good if you have any doubt so you can read my previous post and that post you can see the result of box pattern with live image.
 
If you follow with all rules and the discipline than this is the result of box pattern is very good for live trading. You can trade on this pattern but first practice and retest than try trade in live market.
 

What is the learning of this post :-

There are some learning of this post.
           The first learning is what is box pattern.
           The second learning is what is box consolidation.
           The third learning is how to start consolidation in box pattern.
           The fourth learning is how to find box pattern.
           Thee fifth learning is how to trade using box pattern.
 
In this post lots of learning point you can learn properly but this is first five learning of this post.
 

Thank You for this post and for more update you can follow on YouTube  

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