Shelves: where price may go next

Lesson 4 of 15 · Foundations · 3 min read

Old hubs don't disappear. When price spent days pausing at a level in the past, that level often matters again later. NextShelf calls those earlier ranges shelves.

When a stock breaks out of its current hub, NextShelf looks for the nearest shelf in the direction of the break. That shelf becomes the aim: the place where price has paused before, and where it may pause again.

When there's no shelf nearby

Sometimes there isn't an earlier range in reach. Then NextShelf uses a target based on how much the stock normally moves (its average true range, or ATR), so the aim is still realistic for that stock.

An aim, not a promise

A shelf is a reasonable place to take profits, not a prediction. Some breakouts stop short; some blow through. The Shelf card shows how often past breakouts on that stock actually reached the shelf, so you can judge for yourself.

Key points
  • Shelves are earlier hubs that can act as stopping points.
  • The nearest shelf in the breakout's direction is the aim.
  • No shelf in reach? The aim is based on the stock's normal move (ATR).
Check yourself

A stock breaks out above its hub at $100. Earlier shelves sit at $104 and $112. What's the aim?

Educational content only, not financial advice. See today's setups in NextShelf →