TheStrategyLab.com Price Action Trading Support Forum

Please review the following chart for my DOK Chapter 2.
Bearish Swing Point.

Thank you!

Hi,

Which swing point are you using from tutorial chapter 2

At first glance it looks like you could be using swing point definition #2. I'm assuming this because swing point definition #1 talks about a prior WRB Hidden GAP being filled in by the downward price action and you didn't mention anything about a prior WRB Hidden GAP as described in swing point #1. Also, swing point definition #1 does not talk about three consecutive lower closing intervals involving the first WRB Hidden GAP interval.

Regards,
M.A. Perry

Hi Mark,

Thank you for your quick response. Yes, you are correct I was trying to demonstrate Swing Point Definition #2 (Bearish example). Is this okay?

As an aside, while examining many past recent Key Market Events (ie FOMC Announcement, minutes etc.) and their reactions in subsequent markets, I found it difficult to spot many 'textbook' examples. First of all, on what time frames do you typical look for these patterns? And second, with the increasing amount of HFT, algorithms and computers reacting to news only milliseconds after it being released, are you having to alter the way you look for these swing points/continuation patterns using your WRB methods?

Kind regards,

Jake

Hi,

Your chart is correct for swing point definition #2 but jsut remember that the WRB Hidden GAP interval must be involved as one of the three consecutive same color intervals with lower closes in the bearish example.

By the way, swing points occur multiple times per day. My definitions are just a few of them and most users of WRB Analysis do not use my definitions. Instead, they use their own definitions for swing points or strong continuation price actions. Simply, the purpose of WRB Analysis is not for you to follow my definitions. In contrast, its for you use "first WRB Hidden GAPs" with your own definitions of swing points or strong continuation price actions. Yet, if you don't have your own, you can use mine. Therefore, if you see for example 9 swing points but only 2 of them correlate with my price action definitions...you will not be using WRB Analysis correctly if you were to ignore the other 7 swing points because a first WRB Hidden GAP interval will most likely be involved with those other swing points.

I use 1min, 2min, 3min, 5min, 15min, 60min, daily charts.

I'm not concerned with HFT and their impact on price action is very unclear to what they are doing. Simply, I don't know if what they're doing is bad or good for WRB Analysis considering I had NO facts about specifically what they are doing.

My point is that I see WRBs, WRB Hidden GAPs, WRB Zones the same as I saw them 20 years ago. The only thin different is the today overall volatility is extremely low. Yet, nothing unusual about that because there's been years a long time ago before HFT when overall volatility was extremely low.

Overall volatility has an impact on trading via "reducing" the number trade opportunities (less volume, less volatility, less trading). The only unusual price action I see today that I didn't see years ago is the strange price action chop that occurs after WRB Hidden GAPs when volatility is trying to increase. WRB Hidden GAPs will get quickly retraced and that retracement contains a lot of chop back n forth. I don't know if HFT is responsible for that but it kills the chance of any trade opportunities from showing up.

The main adaptation I've done is to be more aggressive in looking for trade opportunities when volatility shows up and to NOT look for trade opportunities when volatility dries up or exit problematic traders early (before stops are hit) when volatility dries up.

Regards,
M.A. Perry