Toolkits · Volatility & breakouts
Compression Box + Breakout Plan
FreeBoxes quiet price and turns it into a breakout plan: buy stop, sell stop, stop loss and three targets.
Best on: 1D, 1W
What it does
Compression Box draws a box when price goes unusually quiet and turns it into a ready-made plan: a buy stop at the top, a sell stop at the bottom, a stop on the other side and three targets. Think of the box as a narrow doorway: price can leave through either side, and the narrower the doorway, the less you risk if you picked the wrong one.
How to read it
- Read the table first. If the average result per trade is below zero, or the counts are gray, the plan has not worked or has too little history on this chart.
- A yellow box (QUIET) means price is compressed. The buy stop, the sell stop and the stop of each side are already drawn.
- The box height is your risk. Targets sit one, two and three box heights beyond the entry.
- After the break, follow the trade until a target, the stop or the time limit.
When to use it
- When you want a small, clearly defined risk and don't want to guess the direction.
When not to use it
- Expecting an explosion: a quiet market does not usually explode. The edge is the small stop, not a bigger move.
How we tested it
The rules were checked on crypto, stocks, gold and forex on daily, 4-hour and weekly charts before publishing. The table replays every past box of your chart with the same rules, commission included.