Hi,
I don't know what price action definition you used from tutorial chapter 2 to qualify that WRB as a WRB Zone. Can you tell me what price action definition qualified that interval as a WRB Zone.
Also, you annotated on your chart the words "reaction high". There's only one price action definition in tutorial chapter 2 that involves reaction highs and that's the price action called
strong continuation definition #1. I ask the above question because the breakout interval "must be" a WRB Hidden Gap. In contrast, on your chart it's only a WRB (not a WRB Hidden Gap). The reason it's not a WRB Hidden Gap is because the high price of the interval before the WRB is overlapping (sharing a price) with the low price of the interval after the WRB. That disqualifies it as a Hidden Gap.
Cap10 wrote:
...Are there any other trades that people took in the absence of WRBs after 1130hrs?
What level of 'stop lose' could be used in this C2|C1 FVB situation above, if it had qualified?
Just curious, what do people do while waiting long stretches for price action to meet the strict conditions of the FVB strategy?...
There were several WRBs after 1130hrs. Thus, I think you meant WRB Hidden Gaps. On your chart, I see two WRB Hidden Gaps after 1130hrs but they do not qualify as a WRB Zone.
Had the c2/c1 on your chart qualified as a FVB trade signal, the general recommended stop/loss protection is the Open of the WRB Hidden Gap (will assume it was a valid WRB Zone). If that stop/loss is too big for you...you can lower the risk via lowering the position size or stay on the sidelines (no trades).
Most of the free users of the FVB strategy only have the FVB trade strategy. They would have had
no trades today unless they used an advance trading technique I teach called
'sister trading'. It's one of the few concepts from the fee-base material that I'm willing to share with free users that don't have access to the fee-base material.
Sister Trading involves price correlation to another trading instrument. The correlation must be > 90%. Simply, the price actions look very similar. For example, ES/YM/NQ/TF have strong price correlations. Thus, if you're trading Emini TF and Emini ES has a valid trade signal while Emini TF does not...you can take the trade in Emini TF as if it did have a valid trade signal.
Further, lets continue to assume you're ONLY trading Emini TF futures. You should also have the charts of the Russell 2000 Index $RUT, IWM exchange traded fund along with Emini ES/NQ/YM for sister trading approach. Once again, such is an advance trading technique that's not recommended until you've master trading just Emini TF futures alone. After mastering Emini TF...you can then add correlation charts via the $RUT index and IWM etf. Then after mastering the price action of those charts as a source of trade signals for trading Emini TF futures...you can then add the Emini ES/NQ/YM charts.
Another source of additional FVB trade signals is to use more than one chart interval. For example, once you feel comfortable with using the 5min chart interval, you can add on your monitor other chart intervals like the 2min, 3min and 15min chart for day trading purposes. However, I don't recommend adding the 1min chart interval as a source of trade signals until you've master the use of using one of the other recommended day trading time frames (e.g. 2min, 3min, 5min or 15min). Next, if time charts doesn't suit your trading style...you can use continuous tick charts or volume base charts.
It's a big process, must be taken slowly to prevent information overload and to help develop discipline while using the FVB strategy. Yet, if managed properly and you can handle the monitoring multiple charts in stressful trading conditions...you'll consistently be busy trading when using only one trade strategy. Also, as a reminder, the FVB strategy is intentionally presented with ONLY one c2/c1 confirmation signal variation as a way to
prevent information overload (to slow things down) even though there are other confirmation signal variations as I mentioned as a reply to your other message post (e.g. confirmation H signal).
Regardless to sister trading or using multiple time frames, after you've mastered the FVB strategy, you can then create your own price action definitions that fade volatility breakouts (WRB Zones). That's one of the primary purpose of the FVB strategy with WRB Analysis...to teach you how to merge these concepts together in creating a trade strategy of your own. Simply, many of the free users have added their own personal touches as a "fade price action" of volatility breakouts although I'm not allowed to share their details because these are discussions occurring within their own private threads here at the TSL Support Forum.
Therefore, as a reminder, it's stated in the WRB Analysis Tutorials that I can create a private thread here for your eyes only if you want to have private conversations about your own trade signal strategies you create from the WRB Analysis or FVB trade strategy. Currently, there's about eight active private threads and each trader are using their own personal FVB trade strategy or personal swing point/strong continuation price action definitions via adding
more c2/c1 variations to the FVB strategy and
more swing point/strong continuation price action definitions that correlates to their trading style.
Last of all, it's OK to have trading days where there were no trade signals. In fact, any trader I see that has a strong urge to trade when there's no valid trade signals...that's a trader that will not have good discipline when trading in real trading conditions with real money. What do you do when there's no trade signals...continue watching the price action to
learn.
Best Regards,
M.A. Perry
http://www.thestrategylab.com