The Three Box System

Purpose: Displays the price action in the current “box” with one box above and one below.
Description:
- We manually plot a yellow circle in the current “box” relative to each chart time frame.
- Using the E-widget Gladiator, the trader manually moves the yellow circle into the new box as the market price ebbs and flows.
- Traders who understand Darvas Box Theory will recognize the importance of this concept.
- Simple to grasp the current battle zone on any time frame.
NinjaTrader Use:
- Displayed as a yellow circle (manually plotted) to allow the trader to focus on the current battle.
- An imaginary or real red circle above and a green circle below (manually plotted) the current box allows the trader to anticipate the next battle.
- This is relevant to all Time Studies.
- This method is used with the E-Widget Indicator
Practical Example:
- On our ES chart example, we see the current battle is located where the yellow circle is in Box 7.
- Selected NT8 tools can be added to the chart by the trader to provide valuable insights.
- “Imaginary” red and green circles can be used as the trader familiarizes themselves with this technique.
- Reconciliation in multiple Time Studies, especially using The OTF charts gives us an edge.