TheStrategyLab.com Price Action Trading Support Forum

I searched to see if this question has been asked/answered previously or not, so forgive me if it has.

Regarding the definition of WRB Hidden Gaps with respect to using candles, tutorial Chapter 1 states that there cannot be any overlapping price (not a single tick) between the 1st most recent interval/candle body before the WRB and the 1st interval/candle body after the WRB. I understand the definition and differences between how the range of price bars vs. candles are to be applied with the WRB analysis. What I'm not clear about is whether candle wicks are to be considered or not when analyzing the pre-WRB and post WRB candle intervals. The tutorial indicates that when using candles, only the real bodies are considered. I have charts where these candles have bodies which do not share price, but they do have overlapping wicks i.e. the lower wick of the post-WRB candle overlaps the upper wick of the pre-WRB candle and visa-versa.

I want to make sure that I'm applying the rules correctly, but I just need a clarification as to whether the wicks are to be considered or not when using candle bodies, because there are cases where the wicks do share overlapping ticks.

Thanks,
Rob

Hi Rob,

Excellent question...the current version of the WRB Analysis free study guide implies that on bar charts to use the range to determine both the WRB interval and WRB Hidden GAP interval whereas on candlestick charts to use the body to determine a WRB interval and then use the range to determine a WRB Hidden GAP interval after the interval has qualified as a WRB interval via the body.

In contrast, the soon to be release new version of the WRB Analysis free study guide is more detailed and specifically states that on bar charts and candlestick charts to use the entire RANGE to determine if an interval qualifies as a WRB Hidden GAP interval. In contrast, the qualification for a WRB interval itself is the same as the current version...use the body for candlestick charts and continue using the range of bar charts while the old version (current version) wasn't specific enough about such.

There's also more emphasis in the soon to be release new version that you're NOT required to use the body or range just because you're using a particular type of chart. Instead, you can choose whatever you want to use but whatever you do use...stick with it and be clear about which definition you're using whenever you're discussing WRB Analysis to prevent confusing the reader.

For example, in some of the DOK examples by users...there's a few DOKs that was confusing because the trader failed to mentioned how he/she was using WRB Analysis via the range, body or whatever. Therefore, my typical response to those DOKs was that they were incorrect because I really couldn't determine what they were using.

In contrast, there's other DOKs where its clear that the trader is using the BODY only on candlestick charts or the BODY only on bar charts or RANGE only on candlestick charts or the RANGE only on bar charts. They were consistent in their use and because of such I was able to easily determine what they were doing in their WRB Analysis without having to reply to tell them their DOK was incorrect.

I also make it clear in the soon to be release version about how I personally use bar charts and candlestick charts for those that want to apply WRB Analysis specifically how I do it instead of applying it differently. Therefore, I personally use the entire RANGE of the interval on candlestick charts to identify WRB Hidden GAP intervals via the before/after intervals NOT sharing a tick and I only use the body itself to determine if an interval is a WRB interval...allowing identification process of a WRB to change as it morphs into an identification of a WRB Hidden GAP interval.

WRB (body only) ---> WRB Hidden GAP (range only via no tick sharing) ---> WRB Zone (swing point or strong continuation price action)

Therefore, I first look a the body of an interval to determine if it qualifies as a WRB interval. If it qualifies as a WRB interval...I then look at the entire range (that includes to wick price data) of the interval to determine if the before/after) most recent intervals are NOT sharing a tick with each other to identify the WRB Hidden GAP interval. Next, via chapter 2, I then use the swing point and strong continuation price action definitions to determine if the WRB Hidden GAP has or has not qualified as a WRB Zone.

Why do I give traders a choice

There will only be a small difference in the WRB Analysis results when identifying which WRB Hidden GAP intervals will eventually qualify as a WRB Zone via tutorial chapter 2. Simply, it really doesn't matter if someone uses bar charts or candlestick charts...whatever they use they need to be consistent in using it along with being clear about what they're doing whenever having conversations about WRB Analysis with other traders to prevent misunderstandings.

Note: Everybody has different trading styles and different types of charts. Due to the small differences in the end involving the WRB Zone...I want users of WRB Analysis to continue using their own trading style via adapting WRB Analysis into their trading style instead of the other way around.

Too many DOKs have been posted here at the forum by traders that give "no explanation" about what they're using and too many DOK charts involves using both RANGE and BODY ...the latter are the worst DOKs because the trader made it more complicated instead of just choosing one (Range or Body).



Regards,
M.A. Perry

Thank you very much for that detailed reply - very informative. I will apply it to candles since I've never really used bars and find them a bit hard to get used to.

Rob