This interesting system was created by Russian trader TAV.
I translate his posts from russian forum.
Sorry for my bad english.
Main idea of this system is "Flat is our friend!".
At first, find the first vibration(or first wave - first move of new trend).
In this picture i marked it with yellow circle.
Find low point at this vibration and draw a line through the point.
Then, draw the vertical line through that point.
Then find local high and low, and draw a lines through them. So we get a square(It is not always square.).
Then draw other lines at the same distance from the previous line. (By price and by time) Like this:
You can also draw the lines in the middle of these ranges. (I draw it dashed.)
I translate his posts from russian forum.
Sorry for my bad english.
Main idea of this system is "Flat is our friend!".
At first, find the first vibration(or first wave - first move of new trend).
In this picture i marked it with yellow circle.
![25802872.jpg](/proxy.php?image=http%3A%2F%2Fimg689.imageshack.us%2Fimg689%2F849%2F25802872.jpg&hash=3dd94ed1a6b82dafb43ccd545c714051)
Find low point at this vibration and draw a line through the point.
![73706660.jpg](/proxy.php?image=http%3A%2F%2Fimg36.imageshack.us%2Fimg36%2F6549%2F73706660.jpg&hash=af5c4597eedbb59a32d306a0ef0ec1be)
Then, draw the vertical line through that point.
![14445323.jpg](/proxy.php?image=http%3A%2F%2Fimg163.imageshack.us%2Fimg163%2F4202%2F14445323.jpg&hash=70f6024f6d1f8eef98d4b2aa0e19e3d8)
Then find local high and low, and draw a lines through them. So we get a square(It is not always square.).
![78902005.jpg](/proxy.php?image=http%3A%2F%2Fimg7.imageshack.us%2Fimg7%2F4012%2F78902005.jpg&hash=d781f6c732ff0fe60d63129dff92ba99)
Then draw other lines at the same distance from the previous line. (By price and by time) Like this:
![23731321.jpg](/proxy.php?image=http%3A%2F%2Fimg52.imageshack.us%2Fimg52%2F4896%2F23731321.jpg&hash=20f70dda6895e5eb95b132073828585a)
You can also draw the lines in the middle of these ranges. (I draw it dashed.)
![91427425.jpg](/proxy.php?image=http%3A%2F%2Fimg546.imageshack.us%2Fimg546%2F4771%2F91427425.jpg&hash=b9f016fe3d5dde5643b015ff19bb5c46)