Stuck in a box for days. Which side? Trade the edges

Price has been stuck in this box for days.

Would you buy the bottom, sell the top, or wait for the break?

Step one: mark the box. One line on the highest high, one on the lowest low.

Here, the top sits near 155, and the bottom near 152.9.

Step two: trade the edges, not the middle.

Near the bottom, you can buy, with a stop just below the box.

Near the top, you can sell, with a stop just above the box.

In the middle, there's no edge. Just noise. Stay out.

Step three: a close outside the box ends it.

A wick poking out is not enough. You need a candle that closes outside.

So what happened here? On September 15, one candle poked above the top, but closed back inside.

Two candles later, one closed above. Box over. Dollar yen then climbed to about 158.

If you sold the top, your stop above the box kept the loss small.

If you waited, that close outside was your signal to stop selling.

Save this. Mark the box. Trade the edges, stop outside. Middle, stay out. Close outside, the box is over.

Your turn. Next box you see: buy the bottom, sell the top, or wait for the break? Comment below.

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