MightyOne wrote: Since we are plotting movement, I first check to see how much movement is available.
The median of a series of ranges is far superior to the average, when it comes to trading, so that is what I use.
In the picture below you can see that there is large and small, no real median range, so I would go back further and select
something that is more in the middle of the ranges.
The box size is then a percentage of the total movement.
Trial and error has led to 5% for H4, 10% for the daily chart, & 20% for the weekly chart.
Can you make the boxes smaller? Yes, but you go from plotting movement to plotting congestion.
You will get plenty of triggers but nothing that you can hold onto with any confidence.
I would continue to plot the chart for 6 to 8 weeks without recalculating, unless volatility forces me to do otherwise.
And for targeting, go for 100% of the Median range for the TF, or of the highest TF that is aligned with your direction? Or, stay classical, no exit until first opposite signal?
Other observation, coming into all but the largest of cones (to pull back X # of P&F boxes) on a smaller tf bar chart, P&F will tell you to hold and trade through the cone in the direction of the last breakout.