TheStrategyLab.com Price Action Trading Support Forum

Hi,

Hope you can clarify a few points :-

Chapter 1 -
1) The WRB 3 interval rule can be modified into 5,7,10 etc. Am I correct to say that the different intervals only affect the frequency of trades i.e. the smaller the interval, potentially more trading opportunities available? Are there any other reasons for selecting the various intervals?

2) Can the WRB s/r zones be used together with other s/r zones derived from previous day high/low, price congestion areas, fib areas, week high/low etc? Or is it advisable to just focus on WRB s/r zones for trade signals?

Chapter 2 -
1) Will it be too messy to use WRB s/r zones base on key market events and also own pattern signals?

2) If I identify a WRB s/r zone on a 5 min chart, then move down to a 1 min to monitor the price action, do I base my entry on the 5 min or 1 min chart?

Chapter 3-
1) Assuming WRB s/r zones are marked on a chart based on key market event and own pattern signal, is it right if I enter in a WRB zone on key market event, but exit on a WRB zone derived from pattern signal or do I have to exit on the key market event based WRB zone?

Thanks
zenman

Hi zenman,



Yes, different intervals only affect the frequency of trades when going higher. In contrast, intervals below 3 in reaction to a volatility spike is extremely difficult to interpret and has a higher frequency of price noise.



Yes but I'm not sure what you meant by "used together". The reason why I ask is because I've seen a typical s/r chart has lots of horizontal lines, two lines on charts that use high/low, multiple congestion areas et cetera. Therefore, that's a lot of stuff to be following at the same time.

However, one of the things I said to test the merits of WRB S/R Zones is to compare it to the results of something else you may be using. Thus, if you're using traditional s/r levels or zones...compare the performance of your trade signals in WRB S/R Zones to the performance of your trade signals in traditional s/r levels or zones. Therefore, when you determine which one has more merits, I'll assume you'll go with whatever has more merit.

Yet to be realistic, my WRB S/R Zones are at a disadvantae to something you're already using because most traders find it difficult to part ways with something they've been using the longer time they have spent using it. For example, a trader that's only be using Fib areas for a few weeks will more easily give WRB S/R Zone a chance in comparison to a trader that's been using Fib areas for a few years. Therefore, I recommend first doing the comparison unless you have not already developed a bias towards something else prior to WRB Analysis.



It would not be messy to use both tutorial chapter 2 and 3 at the same time. That's why I constructed the WRB Analysis Tutorials this way because most traders already have trade signal strategies even though most traders are losing via their trade signal strategies. In fact, I once did a poll of about +500 traders when I was in charge of a TradeStation and QCharts software user group at the same time. I was a little surprised to find out that most traders will continue using a method that's consistently losing them money for almost 2 years because they think they can "tweek" or "make adjustments" to the entry signal to fix the problem when in reality they didn't understand the price action their trade signals was occuring within.

Thus, knowing that particular stats...I knew traders will be more interested in improving their methods instead of changing to a completely different trade signal method.

Regardless, there are 12 tutorial chapters and your only responsibility will be to determine which tutorial chapters fits your trading style. Thus, tutorial chapter 2 is really for traders that put a lot of emphasis on key market events as the reason why price does what it does. In contrast, there are pure technical traders that believe it's rear-view mirrow of TA that's causing price to do what it does. My point is that you must determine which tutorial chapter is suitable for your trading style because we all know we aren't going to stick with something that's in conflict with our beliefs about the market or the price action.



It depends on if your a trader that's using multiple time frames or one time frame. That's something you need to determine prior to the trade. In fact, it's something that should be determine within the trade method itself instead of doing it sometimes and other times not doing it.

Therefore, if you're using the 5min and 1min chart intervals...look for WRB S/R Zones on the 5min chart to go along with trade signals on the 5min chart. Just the same, your WRB S/R Zones on the 1min chart should go with trade signals via the 1 min chart. Yeah, it's twice the work load but you'll avoid the price action conflict most traders run into when doing analysis via a higher time frame and then dropping down to a lower time frame for entry/exit signals.

Another option, one used by a few clients but not used by me, is to look for WRB S/R zones on the 5min chart and then confirm the importance of that zone if there's a zone on the 1min chart prior to trading trade signals on the 1min chart.



Exit strategy can be based upon any type of WRB S/R Zone, range of a prior WRB Hidden GAP that's not a zone or a current WRB Hidden GAP that appears after entry.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body analysis)
@ http://twitter.com/wrbtrader

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