TheStrategyLab.com Price Action Trading Support Forum

Attached is a 15 minute chart for Forex currency pair GBPNZD, annotated to depict WRB's and HG's.

Hello Rob,

I am a brand new attendee and this is my first post. It looks to me like you might be in the same situation. I am planning to post my first chart, created with NinjaTrader, and it looks very similar to yours. I was wondering however why you used different candle critera for the hidden gaps and the wide range bars. I don't remember that is is required by the documentation. Was this your personal preference?

Thanks!

Well, I was initially confused about the differences between how bars were used vs. candles in qualifying WRB's and HG's, so I posted an inquiry which the author replied to with some really good clarifications. In a nutshell, when you use candles, for determining if a candle is a WRB, you use the REAL Body (the price area between Open & Close, not the wicks) for comparison of the current interval (candle) to the REAL BODIES of the three preceding candles. Once that filter is passed, to determine if it's a Hidden Gap, you use the entire range (Real Body plus wicks - the entire price range from Low to High) for comparing the Interval candle immediately prior to and after the WRB candle. If there is no overlap (no ticks shared) between these two pre/post WRB candles, then the validation as an HG is passed.

The only real difference as I understand it is that when using bars, you use the entire High - Low range for all bars involved when qualifying both a WRB bar as well as performing the Hidden Gap test. I suppose that if I'm wrong, the author will be correcting me soon but I think I have it right.

My understanding also is that the next revision of the Chapter 1-3 tutorial will be updated to reflect these clarifications. Hope that helps.

Rob

Thanks Rob... I have now found that post and I will apply it to my first chart post. Super helpful!!

My next question will be about using the WRBs and the Hidden Gaps as profit targets:



One question I'm not sure of is this:
What is the difference between a WRB Hidden GAP and a WRB Zone?

In any case, to answer that question I'm thinking something like this.

If you're in a position and you get to a Hidden Gap Zone, then you should let your trade cross to the other side of the zone (to the top -- resistance -- if you're long and to the bottom -- support -- if you're short). Does that seem at all right to you?

I'm less sure how to use a single Wide Range Bar as a profit target (but maybe that is not what is meant).

Anyway, I'm back to the study guide and purusing the many posts.

Thanks again!

Chuck

I'm not exactly sure yet....haven't gotten that far, but working on it.

Hi,

Answering Rob

Yes, the soon to be release new version will be clearer about the differences about RANGE of intervals for bar chart users versus BODY of intervals for candlestick chart users. It will also be clear that its you're choice if you want to use RANGE or BODY for bar charts or RANGE or BODY for candlestick charts...just be clear in the WRB Analysis about which one you're using.

RANGE versus BODY has no advantage over the other because the WRB Zones will be similar. I just don't want users to randomly be mixing the use because that will confuse any reader viewing the WRB Analysis.

In contrast, I "think" I've been clear that the determining variable for a Hidden GAP is that the before/after interval must not share a tick at all with each other.

Answering futurestrack

WRB Hidden GAP intervals are defined in chapter 1 and WRB Zones are defined in chapter 2.

The difference is that just because something qualifies as a WRB Hidden GAP doesn't mean it will qualify as a WRB Zone. For example, in chapter 2...there's a key market event requirement and a specific price action definition (swing point and strong continuation) that will determine if a WRB Hidden GAP interval is able to qualify as a WRB Zone.

The primary goal in a trade that uses WRB Analysis as profit targets...its just a simple appearance of the first WRB interval called WRB pt1. Secondary target is a WRB Hidden GAP pt1 and third would be a WRB Zone.

Simply, using WRB pt1 is for basic learning about profit targets whereas using WRB Hidden GAP pt1 and WRB Zones as profit targets is more advance profit targets. I recommend first just learn how to use/identify basic WRB pt1 levels prior to trying to apply the more advance stuff as profit targets.

Regards,
M.A. Perry

Thank you M. A. It's a lot to learn but I'm working on it. I think I have Chapter 1 down, maybe. Chapters 2 and 3 are a lot tougher.