[Soultrader]

Hello Antonio,

I dont really have a set rule for reseting the brackets. You can basically start with any set price. The main focus on bracketing price is to understand whether price is moving up or under a bracket. Let's say you bracket price at any random price level. After watching price bounce back and forth it breaks the short term resistance and moves into a new bracket.

This information tells me that price is going higher in the short term. Remember, my method of tape reading aims for short term price reversals or continuation. You must be quick to pull the trigger.

I guess if you were to put a rule on price bracketing you should reset as soon as the current bracket is no longer valid. If price breaks lower support, reset and make a new bracket. If price breaks uppoer resistance, reset and make a new bracket as well.

Hope this helps.

Regards,

Soultrader