WRB Analysis - Understanding the price action prior to the appearance of trade signals

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Wide Range Body Analysis Wide Range Bar Analysis Expansion Bar (interval) Analysis

WRB Analysis

(Wide Range Body Analysis)

Introduction

First of all, if you're considering purchasing the WRB Analysis Tutorials (Premium) service and want to ask further questions after reading the below introduction information...please join TheStrategyLab.com fee-based resources Questions & Answers forum @ http://www.thestrategylab.com/tsl/forum

With that said, M.A. Perry (that's me) begin developing this type of price action analysis of the markets in the early 1980's and begin trading one strategy derived from WRB Analysis in the late 1980's.

Thus, I concentrated on understanding the price action (trends, range, chop et cetera) for many years prior to developing my first strategy with rules from entry to exit...prior to my very first trade.

Further, in the 1980's when I first started studying the markets (no trading at this time for many years)...I came upon the price action of a WRB accidentally when a hand drawn chart I was preparing for a floor trader was missing one interval.

That missing interval was a wide range body in comparison to prior intervals and I noticed how that missing interval had impact on a few swing points later on the hand drawn chart.

I immediately began studying other charts of different markets and started seeing other similar like price actions to prompt my initial curiosity into what I would later call WRB Analysis.

Yet, I initially called them Wide Range Bar Analysis until I had access to candlestick charting software in the early 90's. The traverse from bar charts to candlestick charts changed my definition of Wide Range Body Analysis especially when I became more of a price action only trader along with becoming more aware of changes in supply/demand via changes in volatility.

Today, many of my clients and I are using +17 different strategies for different types of market conditions...all via WRB Analysis regardless is they're using bar charts (Wide Range Bar Analysis) or candlestick charts (Wide Range Body Analysis).

Further, I have other clients that use my WRB Analysis to improve the performance of their own strategies and a general list of these types of strategies are discussed further below.

What exactly is Wide Range Body Analysis (WRB Analysis)?

WRB Analysis is a method that involves the combination of analyzing changes in volatility and supply/demand. Simply, WRB helps traders to understand and exploit changes in volatility as a way to identify key price areas where's there an important change in supply/demand prior to the appearance of any trade signals.

WRB Analysis can be applied to time based candlestick or bar charts, volume based charts or tick based charts although the chart examples at this website are via time based candlestick charts.

Also, WRB Analysis identifies changes in supply/demand that's occurring between buyers and sellers along with providing a map for exploiting the price action from swing point to swing point regardless if your a day trader, swing trader or position trader.

The word WRB means wide range body and there are different types of WRBs based upon volatility analysis, gap analysis or support/resistance analysis.

A wide range body is an interval that has a body (difference between Open and Close) with a price area larger than the bodies of each of the prior three intervals.

You can use any number greater than the above three intervals as long as its not less than three due to the behavior of volatility analysis because its too difficult to analyze the volatility via less than two intervals regardless if the intervals are based upon time, volume or tick.

Further, don't mix the definitions of a Wide Range Body with a Wide Range Bar even though both are called WRBs.

The Wide Range Bar is a term associated with Bar charts and represents the price area between the High and Low.

In contrast, Wide Range Body is a term associated with Candlestick charts and represents the price area between the Close and Open.

Therefore, base upon the above definitions, I obviously have a preference for candlestick charts even though WRB Analysis can be performed on bar charts, volume based chart or tick charts.

In fact, about 25% of our clients use bar charts instead of candlestick charts.

Chart of WRB (wide range bodies)

We ask for you to take a closer look at the chart below for the mini-sized Dow YM futures on March 30th Friday 2007 to see price action our clients have answers to and many were able to exploit for big profits.

Click on image to view actual size

WRB Analysis in combo with your Strategy

WRB Analysis can be used as stand alone strategies and many of our clients use our trade strategies instead of their own strategies to exploit different types of market conditions.

However, WRB Analysis is an understanding of the price action and that in itself makes it much more important than just trade signals.

It can be used just to get a better understanding of what really is leading your trading instrument for a particular trading day, used only as profit targets for those that have trouble staying with their winners used to improve the trade management (after entry) of many different types of methods or trading styles (day trader, swing trader or position trader).

Therefore, the purpose of WRB Analysis is to be integrated into your own methods to enhance their performance of any of the following strategies you may be using as your trade methodology:

Breakout Strategy

   Fading Breakout Strategy

   Divergence Strategy

   Support/Resistance Strategy

   Double Bottom/Double Top Strategy

   GAP Strategy (Regular Session Gaps and Globex All Session Gaps)

   Trend Strategy

   Range Strategy

   Profit Target Strategy

   Volume Spread Analysis (TheStrategyLab.com has a few clients using VSA even though we ourselves do not use this methodology)

   Intermarket Analysis

   Market Seasonal Tendencies (Cycles) Analysis

   Volatility Analysis and it replaces the need for volume analysis

   Japanese Candlestick Patterns (time and volume based candlestick charts)

   Traditional Chart Patterns (ex. triangles, wedges, head and shoulders, flags, pennants and rectangle price action)

   Technical Indicators (ex. rsi, cci, macd, stochastics, moving averages, average true range, obv and many others)

However, if you are not using any of the above trade methodologies and prefer to use our trade strategies that has WRB Analysis integrated into the strategies...click here.

Trading Instruments suitable for WRB Analysis Tutorials

The nature of WRB Analysis Tutorials makes it suitable for any of the following trading instruments.

   Stocks

   Futures

   Exchange Traded Funds

   Forex Currencies

In contrast, our trade strategies are only applicable to specific trade instruments and to see the list of trading instruments...click here.

Further, we do have some clients that are profitably applying WRB Analysis to trading stocks and many other markets not mentioned above.

However, we are not able to provide proper support to stock traders because we ourselves to not trade stocks nor make any attempts to understand the price action of any specific stock.

With all that said above, if your not interested in the WRB Analysis Tutorials (Premium) and wand to learn about our strategies that exploit changes in supply/demand or volatility...

Trade Strategies from Entry to Exit

The following strategies are for those traders interested in learning about our actual pattern signals (strategies from entry to exit) via WRB Analysis (all strategies are applicable for day trading, swing trading and position trading):

   Volatility Trading Report (VTR) @

http://www.thestrategylab.com/VolatilityTrading.htm

Swing Trading Report (STR) @

http://www.thestrategylab.com/SwingTrading.htm

Advance Price Action Only Report (APAOR) @

http://www.thestrategylab.com/AdvancePriceActionOnly.htm

Advance Japanese Candlestick Trading Report (AJCTR) @

http://www.thestrategylab.com/AdvanceJapaneseCandlestickTrading.htm

Last of all, if you have any trading related questions that has nothing to do with WRB Analysis...please do not hesitate to contact us because we've helped hundreds of traders that have no interest in our methods.

Frequently Asked Questions Home Page

Best Regards,

M.A. Perry
http://www.thestrategylab.com

Phone: +1 708 572 4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com

"If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music he hears, however measured or far away." --Henry David Thoreau