A contraction box tells you price squeezed. It does not tell you how much that squeeze matters. That is what the three box types are for. They sort contractions by how many sides price has broken, so you can give each one the right weight.
One side broken is a level. Both sides broken is a structure. Three or more sides broken is where the cycle started.
Minor Boxes: One Side Broken
A Minor box forms when price breaks out of only one side of the contraction box. It acts as a magnetic level, a bit like a naked point of control. Price usually moves away from it or towards it, and tends to come back to it at some point.
Treat a Minor box as a place price may return to, not as a signal to enter. The contraction is not yet confirmed from both sides.
Major Boxes: Both Sides Broken
A Major box forms when price has broken out of both sides of the box. At that point price has been whipping around the value line, and the box gives you a structure to base entries and exits on. This is the level to look for when you want a defined trade.
Origin Boxes: Three or More Sides Broken
An Origin box forms when price breaks three or more sides. It reveals the start of the three phase cycle: price expands out of the box and whips around the value line multiple times before entering the trend phase. Origin boxes are treated as confirmed, strong key levels.
| Box | Sides broken | How to use it |
|---|---|---|
| Minor | 1 | A magnetic level price tends to return to. Not an entry structure on its own. |
| Major | 2 | A structure to base entries and exits on. |
| Origin | 3 or more | Marks the start of the cycle. A strong key level. |
The Master Pattern Box You're Missing
How to Use the Tiers Together
- 1.Find the contraction box and wait for the breakout.
- 2.Count how many sides price has broken to classify it.
- 3.Ignore Minor boxes for entries. Keep them as levels price may return to.
- 4.Use a Major box on your entry timeframe for the structure of the trade.
- 5.Give Origin boxes extra weight as key levels, especially on higher timeframes.
Pair it with the value line
Boxes tell you how much a contraction matters. The value line tells you where to trade it. Use the higher timeframe value line for bias and a lower timeframe Major box for entries. See our guide to the Master Pattern value line.
See Which Contraction Matters
Indicator X marks every contraction box and tiers it as Minor, Major or Origin automatically. 7-day free trial.
Try Indicator X FreeHow many sides can a contraction box break?
One side makes it Minor, two sides make it Major, and three or more make it an Origin box.
Why do Minor boxes matter if I do not trade them?
Because price tends to come back to them at some point, so they work as levels to be aware of.