Forex Chart Formation Patterns_10. Learn Forex Box Range

Lesson 10: Learn Forex Box Range

A neutral chart pattern indicates a box range. It forms when there is a prolonged
period of indecision in the market and is defined by strong, parallel support and
resistance lines.
As you can see from the chart, the price has been bouncing back and forth from the
support to resistance lines and is unable to break out in either direction. There are
two ways to trade this.

Firstly, you can trade the range. Buy when the price touches the support but also buy
below support while you start looking for resistance. Once the price touches the
resistance, you can sell above the resistance with a stop and your target should be
the support of the range.
A second strategy is to trade the breakout of the range. As this is a neutral pattern,
the breakout can happen on either side. When the price has broken out, you enter
the market and target the height of the box range in direction of the breakout.