TheStrategyLab.com Price Action Trading Support Forum

The example is of the EURUSD on December 6 when the US buildings permits and Initial Claims were announced.

The market was already contracting (volitilty contraction) in anticipation of the market event which occured at 8:30am. The market was also showing lower peaks (not shown)leading up to and after the market event. The WRB (Wide Range Body) occured 20mins after the market event. Within the volitility contraction we see that there are at least 2 dark lines closing lower.

The WRB broke the volitility contracting area. The intervals before and after the WRB did not intercept so this in fact was a WRB Hidden Gap. This Volitility Expansion was labeled V2. Price then contracted for 9 intervals (which did not fill the previous WRB) and then broke out forming another WRB Hidden Gap. This was labeled V1. After V1, we see that there are a min of 2 dark lines closing lower. Our zones can be drawn in.

I hope this example is correct.

Thanks

Hi,

Thanks for the strong continuation definition #2 "demonstration of knowledge (DOK)". It's good.

Regards,
M.A. Perry