Pondering rectangles

Something that I think no one fully answered (or offered an answer to) was “why do the rectangles work?”

I would have loved to stimulate the conversation a bit by offering my elementary observations (the following) but alas, too late. I just didn’t make the time to fully go through the thread and by the time I discovered he was leaving in a week, it was already a week!

The basic version was simply to connect O/L, O/H, and mirror them to create a box. The horizontal line created by the vector of the mirrored lines was the projection point. Price (even in the most simple version) terminated across the vector with very good accuracy and more importantly, in a good time frame. A bit of a “gimme” that price tended to end near that zone anyway, if you don’t draw the box until the end of the TF inspected (ex. end of 24hr on the daily)

(24x1hr)

rect

 

Price terminates 10 hours into the next day as shown by the last bar in the picture. The red horizontal lines combined with the vertical white lines box the area that would make the D1 candles body. Attempted short green vertical lines mark what would be the wicks. So when I think about it, the O-H delta line is really just the upper wick (given bear move). Further, the projection line is really just the length of the upper wick, as measured from the low. Or in other words, the winners wick will eventually (usually) reach a size equal to the losers wick. Perhaps some proof of concept of the idea of the 1/4 1/2 1/4 idea?

???

Or perhaps explained better and more logically in some other fashion?

 

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