TheStrategyLab.com Price Action Trading Support Forum

Hello Mr. Perry and TSL foolowers.
First let me say that I woul like to post this DOK for chapter #3 even though I'm not using a proprietary signal system but instead I'm using basic candelstick patterns. I wanted to do it to test my understanding of WRB concept. So if you believe that I'm doing wrong on post this DOK please feel free to delete this thread.

Regards,
Dom

ps. I'm in a kind of transition in my trading journey. I want to leave the old to get into the new that is way your concept interest me a lot and I'm planning to study even further with you other tutorial and report as well and that is why I don't have anymore a proprietary signal. Hope that make sense.

Ok let's start.

Tutorial chapter 3 is for traders that have a trade signal strategy. Simply, your own custom trade signals can be used as WRB Zones if they are involved (results) as a swing point or strong continuation price action as defined by the definitions from WRB Tutorial Chapter 2 without the key market event rule requirement.

There are two sources of WRB Zones while using your own trade signal strategies.

1- RANGE is the price action between the highest high and lowest low of the intervals involved within your trade signal strategy.
However, if in the pattern signal a WRB is involved that change the range. In this case the presence of the WRB within the signal is forcing us to consider the 3 intervals before the WRB. Thus the range will be different because it has to consider the high and low of all intervals involved within the signal.

2- WRB Hidden GAP (unfilled) interval that occurs within the price action of your trade signal or the first WRB Hidden GAP that appears after your trade signal.

These types of WRB Zones requires less work because you don't need to be concerned with economic calendars, fed events nor real-time continuous news sources.

These information gives trading opportunity at every time a proprietary signal occur within the WRB Zones of choice (Range or WRB HG unfilled) until they are close/filled.

Signal example within a Swing Point Price action.
2 charts attached.

First chart shows: Prior WRB HG-Swing Point with signal involved- WRB HG. with just c1 and c2. (this 1st chart is taken live. I was testing it. Hope is not a problem).
Second chrat invlove a wider range from c1 to c4.

Regards,
Dom

This is what I understood from a signal associated with Strong continuation.
there are 2 charts and each one shows the differecies on strong continuation price action as for chapter 2 plus the extra rule.
I was unable to find charts over the TSL forum about this signal so these are my charts interpretation.

First let me give you some theory:
Strong Price Action Continuation in chapter 2 is the reference for this signal. (re-read the definition an chapter 2 to get help).
In this case another rule is introduced to the concept of Strong Continuation in chapter 2 because chapter 3 is designed to work with a proprietary signal, while chapter 2 is designed to give an understanding of price action including in Market Event:
Price action must occur at/after a higher low or lower high or within any price action identified by the user as directional move.

See charts below.

Regards,
Dom

This post is about "Take Profit and Stop Soss" managment.

Profit target 1 (pt1) is your primary profit target regardless if it’s via the basic or advance type because it’s at pt1 where you must use WRB Analysis to determine if you should exit the entire position, scale out the position or keep the entire position for an bigger profit target (pt2, pt3, pt4 et cetera).

1- The first WRB as a Close > Open interval (don't wait for the interval to complete itself) that appears after and above the pattern signal.
2- WRB Hidden GAP (Close > Open) upon close of the interval that appears after and above the pattern signal.
3- WRB Zones that are still open (not filled in by the price action) and above the pattern signal.

Reverse the above for short signal.

Basic First Stop Adjustment

You should move your initial stop/loss protection into a 1 to 3 tick/pip profitable trailing stop or whatever the first stop adjustment is needed to pay for the trade (commission or spread) instead of using a breakeven first trailing stop adjustment because breakeven is actually a trade loss after you factor in the cost of the trade. Yet, do not move your initial stop/loss protection into a profitable trailing stop until a trigger price is reached.
You have three choices to use as a trigger price to tell you it’s time to move your initial stop/loss protection into a profitable trailing stop. Also, the below recommendations are trade signal price actions regardless to your actual trade entry price.
1- The trigger price is the formation of a WRB that occurs below your Short signal price or above your Long signal price.
2- The trigger price is the formation of a WRB Hidden GAP that occurs below your Short signal price or above your Long signal price.
3- The trigger price is a fixed price that occurs below your Short signal price or above your Long signal price (e.g. moves 7 ticks/pips in the profit).

Regards,
Dom

Hi Dom,

Excellent DOK. Thank you very much.

Regards,
M.A. Perr