How to use The SF Box to create a trading plan – NZDUSD

In the last weeks I’ve been talking about The SF Box, and how you can use it to have a concrete trading plan.

Today we have the perfect example in the NZDUSD.

As you already know, most of the time when the market gets close to an important level in the long term charts it trades in a zone, which is what I call The SF Box. Here how it looks like on the long term charts:

NZDUSD

The NZDUSD is trading very close to an important long term resistance level (blue level). Now, in order to create our trading plan we need to determine The SF Box in the short term charts, here is how it looks like:

NZDUSD

And here is my plan:

Once the market breaks above The SF Box (upper green level), it will trigger a bullish condition, and only long opportunities will be in play.

When the NZDUSD breaks below the SF Box (lower green level), it will trigger a bearish condition, and only short opportunities will be in play.

As long as it trades in The SF Box, range trading is a possibility.

Now I have a very well defined trading plan that will help me trade with more discipline.

What do you think about using the SF Box to create your trading plan?

Let me know in the comment section.

Cheers,

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Mandir

    SF box technique can be used for stock trading also right? But am not able to find any charts like above. Any suggestion?from ur side

  • Jignesh

    The SF Box Strategy looks good but how to draw the SF Box lines. And one more thing to ask is breaking the SF box means close above/below the SF box lines or a complete candle above/below the SF box line.

    • Raul Lopez

      Hey Jignesh, I’ve written several articles about how to draw support and resistance levels, look for them here: http://www.protradingnow.com/articles/

      I’d use a complete candle above/below the breakout level.

      HTH