Hi zenman,
There are two main ways that WRB Analysis Tutorials will improve the performance of your mechanical breakout system. One way is via your entry signals occurring within a WRB S/R Zone (only take the trades that occur within a WRB S/R Zone). Another way is via profit target via only exiting when price becomes a WRB or reaches the range of a prior WRB Hidden GAP or reaches a WRB S/R Zone. Although I don't talk about profit targets, exit methods nor any other aspect of trade management after entry in the WRB Analysis Tutorials...you will learn about the details of a WRB, WRB Hidden GAP or WRB S/R Zone especially how a WRB traverses into a WRB Hidden GAP then into a WRB S/R Zone.
Note: Trade management rules after entry along with in-depth explanations via WRB Analysis is only reserve for fee-base clients. You said - Sometimes a problem with this method is price may have gone up quite a bit before retracing to trigger my entry and I'm not too comfortable taking a breakout after a major move, even if its on retracement. Will the WRB analysis provide a "safer"/earlier zone where I can enter? wrbtrader reply - The safest/earlier entry is before a big move but than that won't be a breakout trade. Therefore, if you're asking if zones will appear before a breakout...the answer is YES. However, your method (breakout) may or may signal an entry within that zone.
If I've misunderstood your question, please explain in a different way how a breakout system can trigger an earlier (safer) entry before the breakout.
You said - Will the WRB analysis work equally well in a liquid and illiquid futures market? Similarly for stocks, will it work for a tightly held, illiquid manipulated stock, where one insider can create a sudden large surge in price which is not indicative of a wider scope of demand? wrbtrader reply - WRB Analysis will produce zones in any type of futures market as long as there are WRBs. Simply, if there's no WRB's, it can't be applied. However, it's impossible for a market not to have WRB's. Also, how well it works is easily tested by you via comparing the results of your trade signals without WRB Analysis versus your trade signals that occurs with WRB Analysis.
Further, due to the fact that you're using a mechanical system, I can't tell you how well something will work without knowing the criteria of the mechanical system. Simply, the best route for you is to do your own comparison unless you want to reveal to me the criteria for your system.
In addition, WRB Analysis identifies key changes in supply/demand regardless if that change occurred via one person/firm of 100s of individuals. Simply, it doesn't matter if the price action is manipulated...what matters is that WRB Analysis identifies the change in supply/demand being caused by the manipulation. You can then decide if you want to use such a zone or not.
You said - Is WRB more applicable to a trending market or a ranging one? wrbtrader reply - It's applicable to any type of market conditions that has WRBs. However, trend conditons or high volatility conditions produces WRBs that tend to last longer (wrb's have a life span) along with easier identification of WRB S/R Zones.
You said - Does the WRB analysis itself indicate whether a market is in a trending or sideways mode? wrbtrader reply - Someone else ask this question before in the past and I was never comfortable with my reply. Thus, I will try to answer this question in a different way.
A single WRB cannot tell you if the market is in a trend or range or sideways. However, as the price action develops and you see more WRB's or the lack of WRB's...you'll be able to piece the puzzle together and determine if the market is in a trend or range or sideways.
However, a WRB doesn't tell you if the market
will trend or range or go sideways. That's dependent upon your trade method. Thus, WRB Analysis tells you what the market is doing and not what the market will do.
I'm going to sit on the above reply for the night and may add more commentary to it tomorrow morning. I'll have your free access to the WRB Analysis Tutorial chapters 1, 2 and 3 after I've reviewed my replies in the morning what I've said tonight in my reply. I'm a little tired right now which is the reason why I'm not going to set everything up tonight.
Best Regards,
M.A. Perry
Trader and Founder of
WRB Analysis (wide range body analysis)
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questions@thestrategylab.comGo Back To TheStrategyLab.com Homepage zenman wrote:
Hi,
I day trade mainly the emini ES and 6E. Attached is the 5 min ES chart from Feb 2. It's a mechanical breakout strategy with fixed target exits of 2 and 4 points. After 1st target is reached, I'll move my stop to breakeven.
Sometimes a problem with this method is price may have gone up quite a bit before retracing to trigger my entry and I'm not too comfortable taking a breakout after a major move, even if its on retracement. Will the WRB analysis provide a "safer"/earlier zone where I can enter?
Will the WRB analysis work equally well in a liquid and illiquid futures market? Similarly for stocks, will it work for a tightly held, illiquid manipulated stock, where one insider can create a sudden large surge in price which is not indicative of a wider scope of demand?
Is WRB more applicable to a trending market or a ranging one?
Does the WRB analysis itself indicate whether a market is in a trending or sideways mode?
Thx
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