TheStrategyLab.com Price Action Trading Support Forum

in the FREE WRB Analysis Tutorial Chapter 2 i quote "Also, it's common to see the price action correlate with more than one of the above strong continuation price action definitions"

In this chart i want to show why the Strong Continuation definition #2 cant be used ONLY Strong Continuation definition #1.

Strong definition #2 cant be used because there are no minimum of two dark lines with lower closes after and below the close of v1Dark WRB.

When the size of the WRB S/R Zone is small like in this chart, what does that tell us about the Zone? What about when its Large?

Hi,

The size of the zone in comparison to other recent zones will only reveal which has the smallest or largest key change in supply/demand and strength of change in volatility. In provides no information about future direction of the price action.

Also, the bigger the zone, the more chance of multiple trade signals (Long or Short) occurring within the zone when price enters the zone. Just the same, the larger the zone the higher chance that a tight trading range price action will develop.

Regards,
M.A. Perry