Attached is SPY 1 hour interval chart.
KME is FOMC Meeting Minutes on 17 Aug which formed a WRB HG. Price action also fills up the prior WRB HG.
This is a bullish swing point #1. I am using the body of the first WRB HG as the WRB zone.
Q: I usually use daily chart because I do swing trades. However the KME didn't form a WRB zone on the daily chart but it did on an hourly chart. So in this case do I trade using hourly chart or daily chart using the WRB zone?
Thanks for the tutorial chapter 2 DOK.
Its recommended that you only look for trade signals on the same time frame as the WRB Zone. Therefore, in this particular price action situation on your chart that has the WRB Zone on the hourly chart...you would only look for trade signals on the hourly chart.
In contrast, some traders are multi time frame traders...I'm not one of them. Thus, they use a higher time frame to help confirm something they see on a lower time frame.
For example, one user of WRB Analysis...if she gets a WRB Zone on the hourly chart, she then uses parallel (horizontal) lines to mark the R area and S area of the WRB Zone on the hourly chart but then waits to see if her trade signal appears on the daily chart within those horizontal lines. Also, vice versa, she does the same. Thus, if she gets a WRB Zone on the daily chart...she looks for trade signals within the WRB Zones on the hourly chart and the daily chart.
The reason I myself do not do this is because its a ton more work and I've never researched the merits of such in comparison to other users that are multi time frame traders using WRB Analysis.