Zone‑to‑Zone Trading
1.1 Drawing the Zones
What is a zone?
A price area (not a single line) where the market repeatedly reacts: flips from support→resistance (S/R) or resistance→support (R/S), stalls, or coils.
Priority by timeframe:
Monthly ≥ Weekly ≥ Daily ≥ Hourly. Higher‑timeframe zones carry more weight.
How to mark zones
Start on monthly, and highlight obvious S/R bands.
Drill down to weekly, refine, or add.
Drill down to daily, refine, or add.
Drill down to hourly for tactical entries.
Clues for a quality zone
Prior breakout level that later flips to S/R on retest and consolidates before resolution.
Clear historical reaction clusters (wicks, bodies, or gaps).
Visible “sensitivity” (multiple rejections/holds in the same area).
1.2 Trading the Zones
Entry: Wait for local consolidation near a zone, then take the breakout.
Stops:
Conservative: Below the box low (consolidation floor).
Tight: Mid‑box (accept higher stop‑out rate, better R).
Filter:
Longs only above 50 SMA, shorts only below 50 SMA (trend filter).
1.3 Range vs. Exact Level
Treat zones as bands, not one price tick. I would take the pivot close to the opening of the first red candle if it's a bullish pivot.
At times a single line is acceptable (e.g., clean, repeated close‑basis pivot), but default to ranges.
2) Box System
2.1 Market Phases
Sideways (consolidation) → build energy (boxes form between zones).
Trending → series of HH/HL (up) or LH/LL (down).
2.2 Trend Structure
Trends breathe via consolidation → expansion → consolidation.
Breakouts can:
Go with no retest
Retest the boundary and go
Brief incursion back into box, then full resolve
The first inner zone inside the box is critical: if a new uptrend is valid, the price shouldn’t revisit below it.
Stops: below that first inner zone.
Note: Zone‑to‑Zone shines in non‑trendy markets (FX, many dividend names).
2.3 Types of Boxes
MA roles (fractal):
9 SMA → short‑term momentum
50 SMA → intermediate momentum
21 SMA → the inflection between 9 and 50; often reacts first
2.3.1 Base Box
Both the 9 & 50 SMA flatten for an extended period.
Highest stored energy; breakouts can start major trends.
2.3.2 50 SMA Box
Sideways price, 9 SMA flat, 50 SMA rising/falling into price as dynamic S/R.
Breakout after the 50 SMA reaches the box.
2.3.3 9 SMA Box
Shorter coil (≈ 3–4 candles).
9 SMA catches up; breakout follows.
Shortest consolidation; quicker moves.
2.3.4 9 vs 50 Comparison
9 SMA trend: 2× HH/HL supported by 9. Parabolic (≈20% of cases): each candle’s low should not undercut the prior candle’s low.
9 SMA box: brief sideways until 9 SMA “tags” price → quick reaction.
50 SMA boxes: longer coil; 50 “arrives,” 9 often flat.
Base box: 50 is inside & flat; price crossed above/below multiple times.
2.4 System Objectives Checklist
Trend-following or mean-reversion?
Entry conditions?
Exit logic?
System expectancy?
Risk model?
Entries
Box breakout (bullish): Prefer consolidation at the top‑right of the box before break → higher probability.
Zone‑to‑Zone: Look for a lower‑TF coil at a higher‑TF zone → break of coil for entry.
Profit & Exits
Next zone target; or
Exit when an uptrend fails to make an HL (i.e., breaks prior swing low).
Stops
Box breakout: Below the first inner zone or box low.
Zone‑to‑Zone: Based on the lower‑TF coil used for entry.
Position Size = 4% per trade or less.
2.5 Trading the Boxes
Four box archetypes: 9 SMA, 21 SMA, 50 SMA, and Base.
Base Box
More false starts; longest runs when it goes.
Prefer equity or bull‑put spreads; ride while price > 50 SMA.
50 SMA Box
The first 50‑box after a base is the most reliable.
Daily 50‑box usually follows 3–4 weeks of coil; expect ≈1.5–2 weeks of trend leg.
Tactics: Stock and swing options (expiry ≈ coil length or slightly more).
9 SMA Boxes
Breakout leg ≈2–3 days, then another coil.
Tactics: Scalps with 1–1.5 weeks to expiry; 1–2 OTM strikes.
Quick Summary
Base: most power, least timing precision.
50: first after base = best reliability; second is weaker.
9: short, sharp, tactical.
2.6 Overall Market Environment
If indices trend up above the latest daily zone, 8/10 breakouts can succeed.
If indices chop under the latest daily zone, expect ≈5/10 to work.
Compare QQQ vs. SPY strength to gauge risk‑on/off.
Rules of thumb
Upside bias: Index above the latest daily zone (or proxy 9 SMA if approximating).
Scalping bias: Above the latest hourly zone.
2.7 Box System & Long‑Term Investing (LTI)
Markets are fractal; weekly = daily = hourly in pattern, not speed.
Trend rule: in an uptrend, price should not break prior swing low (mirror for downtrend).
Trailing stop logic
Uptrend: trail to recent swing low once confirmed.
Downtrend: trail to recent swing high.
MA benchmarks:
Hard breaks of 9 SMA → likely consolidation.
50 SMA for longer bias.
Caveat: large‑cap growth rarely trends cleanly down (index dependency & fund flows).
2.8 Watchlist Creation
Three steps
Scan sectors for consolidations (boxes).
Check relative strength vs. SPY (e.g., XLK/SPY).
Review the top 10–20 holdings.
Tiers
A‑List: Box about to break + high options liquidity.
B‑List: Box about to break but low options liquidity.
C‑List: Boxes are still developing.
2.9 Role of the 21 SMA
Acts as the inflection between 9 and 50.
The highest failed‑break probability occurs at 21 boxes.
After a 9‑trend ends, watch 21 for the reaction:
Back to recent highs and breaks, or
Failed break; or
Reject at 9 after 21 reactions.
2.10 SPX Intraday Scalp Pattern
Don’t chase the open; wait 1–2 hours for the market to form an intraday box (2–3 h coil).
Enter as the range breaks: you benefit from direction and rising IV (“double whammy”).
2.11 SQUEEZE Pro Indicator (SQZPRO)
Concept: A squeeze occurs when Bollinger Bands compress inside the Keltner Channels (BB inside KC) → energy building.
Dot codes (suggested):
Green: No squeeze
Black: Mild squeeze (BB within 2 ATR KC)
Red: Tight squeeze (BB within 1.5 ATR KC)
Yellow: Very tight (best odds for expansion)
Heuristic: The tighter the compression, the stronger the potential release.
2.12 Backtesting & Strategy Creation
Use TradingView Replay. Segment by regime (bull, bear, or chop).
Test entries, exits, and risk variants.
Purpose: build statistical confidence to keep your “monkey brain” from hijacking.
2.13 QQQ vs SPY for Intraday
SPY: S&P 500 (market‑cap weighted, broader economy).
QQQ: NASDAQ‑100 ex‑financials (tech‑heavy, risk‑on).
Scenarios
Bullish clean: QQQ > SPY, and both above hourly 9.
Bearish clean: QQQ < SPY, and both below hourly 9.
Chop, green day: Market up but QQQ < SPY → grindy.
Chop, red day: Market down and SPY < QQQ → grindy.
Read strength: Compare % change vs prior close.
2.14 Gaps: What & Why
Markets aren’t 24/7; exogenous events (earnings, geopolitics) reset expectations → open ≠ prior close.
How to trade gaps
Treat the gap range as support (gap‑up) or resistance (gap‑down); draw a gap box.
Unfilled gaps are potent S/R. Above, a bullish gap favors continuation until filled.
If the gap is huge, rely on historic zones to seed new levels within.
2.15 Scalps vs Swings
Scalps: minutes–hours; TF ≤ 1h.
Swings: days–weeks; TF ≥ 1h (prefer daily baseline).
Drill down one TF for refined entries; manage to the anchor TF.
Expiration (rules of thumb)
Stocks (scalps): Mon/Tue → same‑week; Wed/Thu/Fri → next‑week.
Indices (scalps): 1–2 DTE, 1–2 OTM.
Swings: Expiry ≥ consolidation length (often 1–1.5× coil duration).
2.16 Which Timeframe Should You Trade?
Real Trading Hours, 1-2 HR → Day trading & scalps (≤1h TF).
After Hours, 1–2 hr → Swings (≥1 hr, ideally daily).
Less than 1 HR → Multi‑week swings or LTI (weekly charts).
1.1 Drawing the Zones
What is a zone?
A price area (not a single line) where the market repeatedly reacts: flips from support→resistance (S/R) or resistance→support (R/S), stalls, or coils.
Priority by timeframe:
Monthly ≥ Weekly ≥ Daily ≥ Hourly. Higher‑timeframe zones carry more weight.
How to mark zones
Start on monthly, and highlight obvious S/R bands.
Drill down to weekly, refine, or add.
Drill down to daily, refine, or add.
Drill down to hourly for tactical entries.
Clues for a quality zone
Prior breakout level that later flips to S/R on retest and consolidates before resolution.
Clear historical reaction clusters (wicks, bodies, or gaps).
Visible “sensitivity” (multiple rejections/holds in the same area).
1.2 Trading the Zones
Entry: Wait for local consolidation near a zone, then take the breakout.
Stops:
Conservative: Below the box low (consolidation floor).
Tight: Mid‑box (accept higher stop‑out rate, better R).
Filter:
Longs only above 50 SMA, shorts only below 50 SMA (trend filter).
1.3 Range vs. Exact Level
Treat zones as bands, not one price tick. I would take the pivot close to the opening of the first red candle if it's a bullish pivot.
At times a single line is acceptable (e.g., clean, repeated close‑basis pivot), but default to ranges.
2) Box System
2.1 Market Phases
Sideways (consolidation) → build energy (boxes form between zones).
Trending → series of HH/HL (up) or LH/LL (down).
2.2 Trend Structure
Trends breathe via consolidation → expansion → consolidation.
Breakouts can:
Go with no retest
Retest the boundary and go
Brief incursion back into box, then full resolve
The first inner zone inside the box is critical: if a new uptrend is valid, the price shouldn’t revisit below it.
Stops: below that first inner zone.
Note: Zone‑to‑Zone shines in non‑trendy markets (FX, many dividend names).
2.3 Types of Boxes
MA roles (fractal):
9 SMA → short‑term momentum
50 SMA → intermediate momentum
21 SMA → the inflection between 9 and 50; often reacts first
2.3.1 Base Box
Both the 9 & 50 SMA flatten for an extended period.
Highest stored energy; breakouts can start major trends.
2.3.2 50 SMA Box
Sideways price, 9 SMA flat, 50 SMA rising/falling into price as dynamic S/R.
Breakout after the 50 SMA reaches the box.
2.3.3 9 SMA Box
Shorter coil (≈ 3–4 candles).
9 SMA catches up; breakout follows.
Shortest consolidation; quicker moves.
2.3.4 9 vs 50 Comparison
9 SMA trend: 2× HH/HL supported by 9. Parabolic (≈20% of cases): each candle’s low should not undercut the prior candle’s low.
9 SMA box: brief sideways until 9 SMA “tags” price → quick reaction.
50 SMA boxes: longer coil; 50 “arrives,” 9 often flat.
Base box: 50 is inside & flat; price crossed above/below multiple times.
2.4 System Objectives Checklist
Trend-following or mean-reversion?
Entry conditions?
Exit logic?
System expectancy?
Risk model?
Entries
Box breakout (bullish): Prefer consolidation at the top‑right of the box before break → higher probability.
Zone‑to‑Zone: Look for a lower‑TF coil at a higher‑TF zone → break of coil for entry.
Profit & Exits
Next zone target; or
Exit when an uptrend fails to make an HL (i.e., breaks prior swing low).
Stops
Box breakout: Below the first inner zone or box low.
Zone‑to‑Zone: Based on the lower‑TF coil used for entry.
Position Size = 4% per trade or less.
2.5 Trading the Boxes
Four box archetypes: 9 SMA, 21 SMA, 50 SMA, and Base.
Base Box
More false starts; longest runs when it goes.
Prefer equity or bull‑put spreads; ride while price > 50 SMA.
50 SMA Box
The first 50‑box after a base is the most reliable.
Daily 50‑box usually follows 3–4 weeks of coil; expect ≈1.5–2 weeks of trend leg.
Tactics: Stock and swing options (expiry ≈ coil length or slightly more).
9 SMA Boxes
Breakout leg ≈2–3 days, then another coil.
Tactics: Scalps with 1–1.5 weeks to expiry; 1–2 OTM strikes.
Quick Summary
Base: most power, least timing precision.
50: first after base = best reliability; second is weaker.
9: short, sharp, tactical.
2.6 Overall Market Environment
If indices trend up above the latest daily zone, 8/10 breakouts can succeed.
If indices chop under the latest daily zone, expect ≈5/10 to work.
Compare QQQ vs. SPY strength to gauge risk‑on/off.
Rules of thumb
Upside bias: Index above the latest daily zone (or proxy 9 SMA if approximating).
Scalping bias: Above the latest hourly zone.
2.7 Box System & Long‑Term Investing (LTI)
Markets are fractal; weekly = daily = hourly in pattern, not speed.
Trend rule: in an uptrend, price should not break prior swing low (mirror for downtrend).
Trailing stop logic
Uptrend: trail to recent swing low once confirmed.
Downtrend: trail to recent swing high.
MA benchmarks:
Hard breaks of 9 SMA → likely consolidation.
50 SMA for longer bias.
Caveat: large‑cap growth rarely trends cleanly down (index dependency & fund flows).
2.8 Watchlist Creation
Three steps
Scan sectors for consolidations (boxes).
Check relative strength vs. SPY (e.g., XLK/SPY).
Review the top 10–20 holdings.
Tiers
A‑List: Box about to break + high options liquidity.
B‑List: Box about to break but low options liquidity.
C‑List: Boxes are still developing.
2.9 Role of the 21 SMA
Acts as the inflection between 9 and 50.
The highest failed‑break probability occurs at 21 boxes.
After a 9‑trend ends, watch 21 for the reaction:
Back to recent highs and breaks, or
Failed break; or
Reject at 9 after 21 reactions.
2.10 SPX Intraday Scalp Pattern
Don’t chase the open; wait 1–2 hours for the market to form an intraday box (2–3 h coil).
Enter as the range breaks: you benefit from direction and rising IV (“double whammy”).
2.11 SQUEEZE Pro Indicator (SQZPRO)
Concept: A squeeze occurs when Bollinger Bands compress inside the Keltner Channels (BB inside KC) → energy building.
Dot codes (suggested):
Green: No squeeze
Black: Mild squeeze (BB within 2 ATR KC)
Red: Tight squeeze (BB within 1.5 ATR KC)
Yellow: Very tight (best odds for expansion)
Heuristic: The tighter the compression, the stronger the potential release.
2.12 Backtesting & Strategy Creation
Use TradingView Replay. Segment by regime (bull, bear, or chop).
Test entries, exits, and risk variants.
Purpose: build statistical confidence to keep your “monkey brain” from hijacking.
2.13 QQQ vs SPY for Intraday
SPY: S&P 500 (market‑cap weighted, broader economy).
QQQ: NASDAQ‑100 ex‑financials (tech‑heavy, risk‑on).
Scenarios
Bullish clean: QQQ > SPY, and both above hourly 9.
Bearish clean: QQQ < SPY, and both below hourly 9.
Chop, green day: Market up but QQQ < SPY → grindy.
Chop, red day: Market down and SPY < QQQ → grindy.
Read strength: Compare % change vs prior close.
2.14 Gaps: What & Why
Markets aren’t 24/7; exogenous events (earnings, geopolitics) reset expectations → open ≠ prior close.
How to trade gaps
Treat the gap range as support (gap‑up) or resistance (gap‑down); draw a gap box.
Unfilled gaps are potent S/R. Above, a bullish gap favors continuation until filled.
If the gap is huge, rely on historic zones to seed new levels within.
2.15 Scalps vs Swings
Scalps: minutes–hours; TF ≤ 1h.
Swings: days–weeks; TF ≥ 1h (prefer daily baseline).
Drill down one TF for refined entries; manage to the anchor TF.
Expiration (rules of thumb)
Stocks (scalps): Mon/Tue → same‑week; Wed/Thu/Fri → next‑week.
Indices (scalps): 1–2 DTE, 1–2 OTM.
Swings: Expiry ≥ consolidation length (often 1–1.5× coil duration).
2.16 Which Timeframe Should You Trade?
Real Trading Hours, 1-2 HR → Day trading & scalps (≤1h TF).
After Hours, 1–2 hr → Swings (≥1 hr, ideally daily).
Less than 1 HR → Multi‑week swings or LTI (weekly charts).
Gabriel Amadeus
The Real World - Stocks Campus:
Stocks, Options, Futures, Forex, Crypto, this is what we trade.
Learn profitable trading systems or build your own, just like I did.
jointherealworld.com/?a=f7jkjpg8kh
The Real World - Stocks Campus:
Stocks, Options, Futures, Forex, Crypto, this is what we trade.
Learn profitable trading systems or build your own, just like I did.
jointherealworld.com/?a=f7jkjpg8kh
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Gabriel Amadeus
The Real World - Stocks Campus:
Stocks, Options, Futures, Forex, Crypto, this is what we trade.
Learn profitable trading systems or build your own, just like I did.
jointherealworld.com/?a=f7jkjpg8kh
The Real World - Stocks Campus:
Stocks, Options, Futures, Forex, Crypto, this is what we trade.
Learn profitable trading systems or build your own, just like I did.
jointherealworld.com/?a=f7jkjpg8kh
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.