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Hi

I have programmed the trigger of Wide Range Bodies into my tool and have separated it into Expanding Body 4 and Expanding Body 7 along with Contracting Body 4 and 7.

And am paying more attention to any breakout or breakdown above/below any congestion zone. This becomes a key WRB for me which i use to plot Support/Resistance Zone. I hope that is correct

The attached chart shows an uptrend in progress and then distribution at the top but when price is getting marked down and enters an area of KEY WRB then the range of the body contracted and the tool showed Contracting Body 4. So now we have a contracting body into a price area where we previously had an expanding body.

And if that contracted body 4 was seen in isolation then it would look like a hammer. Thus now we have seen extreme rejection of prices at the lower end of the Support/Resistance Zone and the long shadow confirms this. Thus making it an excellent point to liquidate any previously opened short positions. I hope i got this correct and will be able to translate this knowledge into the right edge of the chart.

Cheers

Hi lnangia,

Thanks for the chart. Tutorial chapter 2 involves key market events that produce a WRB Hidden GAP that can be used as WRB S/R Zones. In contrast, tutorial chapter 3 involves your own personal trade signals that can be used as WRB S/R Zones.

Here's quick summary of both tutorial chapters.

Tutorial Chapter 2

Key Market Event --> WRB Hidden GAP --> WRB S/R Zone

Tutorial Chapter 3

(not involved with key market events)

Your Trade Signal --> WRB Hidden GAP --> WRB S/R Zone

With that said, your chart, it's a little confusing because I don't know if you're using tutorial chapter 2, tutorial chapter 3 or both. I say that because you call something a WRB S/R Zone which implies you're using one of those tutorial chapters.

If so, what key market event triggered your annotation "WRB Support/Resistance Zone" assuming you used tutorial chapter 2 because I don't see it annotated on your chart?

However, if you used tutorial chapter 3 to generate that WRB S/R Zone...I don't see where you annotated entry/exit signal via anything you've learned from VSA or your own personal signals from Wyckoff's methods. I say the above because you're labeling WRB Hidden GAPs as WRB S/R Zones and to do that implies you're using one of the tutorial chapters.

Also, you called something an expansion bar 4 (WRB Hidden GAP) but it's not a Hidden GAP. Thus, the high of the interval before the expansion bar is overlapping with the low of the interval after the expansion bar. Simply, in tutorial chapter 1 there is no overlapping for something to be called a WRB Hidden GAP. Yet, you didn't use the words WRB Hidden GAP which could imply you know the difference and you're not calling it a WRB Hidden GAP to explain why I don't see those words on your chart.

Simply, it seems you could be trying to determine what type of Expansion Bar to label as a WRB S/R Zone even though it may or may not be a WRB Hidden GAP. Thus, please provide more information about what you're showing on your chart within the context of WRB Hidden GAP and WRB S/R Zone because it seems you're already trying to merge something without letting me know the rules of your trade signals or you're trying to create a new analysis based upon Expansion Bars and not based upon WRB Hidden GAPs.

Regards,
M.A. Perry

Hi

I'm sorry for the incomplete explanation.

So far what i have been doing is looking for Strength On Down Bars and Weakness on Up Bars. This is the basics of VSA and Wyckoff's methods. And when price re-tests that particular area i look at the nature of the re-test and if the re-test holds from there. But ever since i read about WRB it has opened up a new idea in my mind , now i look for strength on Down Bars and up Bars which have broken through a congestion zone and vice-versa. So what i have been doing is basically labeling every critical high volume up bar or down bar as potentially Bullish or Bearish. Why critical Because of the sudden surge in activity which implies increase in willingness of professional traders to participate along with the public. Thus this becomes a highly liquid area.

I did read about Hidden Gap analysis and found it quite interesting. Ever since i have been trading i have made up my mind about one thing that i shall never/ever look at any news or events which are taking place at the right edge. On the contrary , i shall do a hindsight analysis of which important news or events triggered which led to such a sudden surge or decline in prices. I know that you have taken the trouble to explain everything very nicely in the tutorials and i thank you for that. However news/key events in real time get the better of me and invade my comfort zone to some extent. So i keep away from them.

Now in the chart attached previously price got into the mark down phase and entered the area of previous Expansion Body and then the current body got contracted. Now in VSA/Wyckoff's methods this does not meet any of my criteria to exit a short position or enter a long one. Why Because there is still weakness and the re-test is weak because of the expansion of spread and volume , so i would not enter long. And i would not exit my short positions as well however the next up bar would have triggered my trailing stop. None of my criteria were met but the aim of this exercise was to understand where i could exit voluntarily and not get taken out by my trailing stop. So all i have done is found a point where there could be a temporary change.

I am basically constructing zones of support/resistance and looking at the variables that i used to look at earlier within the price area of the previously created Key WRB. And if my variables hold within this body then it becomes a high probability trade for me. As i said earlier because of WRB now i am even looking for Strength on Up Bars and Weakness on Down bars along with Strength on Down bars and Weakness on Up bars (VSA)

I'm all in favor of a change as long as it increases productivity. So looking for a feedback from you.

Cheers

Hi Inangia,

Thanks for the explanation and I now have a better understanding of what you doing and how you're trying to use WRB Analysis to aid with your VSA and Wyckoff's methods.

Best Regards,
M.A. Perry

Hi MA Perry

I am really enjoying playing around with expanding bodies and contracting bodies and are fitting in very well with my primary method of trading.

I do not know what all will be covered from chapters 4-12 once i subscribe it but if you can give me an overview in a sentence or two then it would just be very helpful as i would have an idea of how much of my chart reading skill will increase if i go ahead and subscribe it. I would completely understand if you not wish to answer this question and maintain discretion.

Regards

Lalit

Hi Lalit,

I apologize for not posting anywhere at the website the table of contents for the advance tutorial chapters 4 - 12 like I did for the basic tutorial chapters 1 - 3. Therefore, thanks for the question and heads up.

The basic tutorial chapters involves introduction, importance of key market events and your own trade signals (if you're willing to disclose such for help). In contrast, the advance tutorial chapters are pure price action only (no key market events and no trade signals). It's recommended that a trader spends a minimum of one month learning and applying each tutorial chapter prior to proceeding to the next tutorial chapter. In addition, traders that post DOKs are rewarded upon completion of posting DOKs to all 12 tutorial chapters. However, you're not required to post a DOK but if you want access to the bonus material...you can only gain free acess to the bonus material via posting DOKs.

Most clients that purchase the WRB Analysis Tutorials 1 - 12 at the cose of $450...eventually upgrade (purchase) the Volatility Trading Report (VTR) trade signal strategies for an additional $500 - $973 dollars depending upon the current discount for the VTR upgrade. However, I have a current promotion for traders that gets them access to the Volatility Trading Report (VTR) trade signal strategies and all 12 WRB Analysis Tutorials for a total cost of only $500 via their participation at the TSL Support Forum that helped keep it active (not a ghost town).

Table of Contents

Basic Tutorial Chapter 1 - Introduction and Explanation of WRB Hidden GAP

Basic Tutorial Chapter 2 - Key Market Events as WRB S/R Zones

Basic Tutorial Chapter 3 - Pattern Signals as WRB S/R Zones

Advance Tutorial Chapter 4 - Volatility breakouts

Advance Tutorial Chapter 5 - Long Shadows

Advance Tutorial Chapter 6 - WRB Hidden GAP ---> Reaction Highs/Lows

Advance Tutorial Chapter 7 - Outside Range GAPs

Advance Tutorial Chapter 8 - Inside Range GAPs

Advance Tutorial Chapter 9 - Contracting Volatilities

Advance Tutorial Chapter 10 - v2 WRB Hidden GAPs

Advance Tutorial Chapter 11 - Reactivation of Filled WRB S/R Zones

Advance Tutorial Chapter 12 - Swing Points that produce Higher Lows or Lower Highs within the Range (Body) of a WRB Hidden GAP

Bonus Trade Signal Strategy via Tutorial Chapter 11: For clients after they've posted DOKs for tutorial chapters 1 - 11 to help them understand how to convert a tutorial chapter for understanding the price action into a trade signal strategy.

Bonus Trade Signal Strategy via Tutorial Chapter 12: For clients after they've posted DOKs for tutorial chapters 1 - 12 to help them understand how to convert a tutorial chapter for understanding the price action into a trade signal strategy.

Bonus Advance Tutorial Chapters 13 - 15: Upon completions of posting DOKs to tutorial chapters 1 - 12, 1 year of forum participation at the fee-base forum to help keep the forum active...these bonus tutorial chapters are free as my way of saying thank you.

The below payment information is for the Volatility Trading Report (VTR) that gets you access to the trade signal strategies and the 12 WRB Analysis Tutorial chapters even though you seem to have your own trade signal strategies. However, you'll be able to see how I've merged WRB Analysis into some of my trade signal strategies to help keep the trade signal strategies reliable.



If you don't see the payment image above for the Volatility Trading Report (VTR)...click here.

http://www.thestrategylab.com/VolatilityTrading.htm

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

Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
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Hi MA Perry

So far i have been using countermanding Expanding Bodies to create support and resistance zones (delta zone) but after a fair bit of back testing i realized that all countermanding expanding bodies do not create support/resistance zones but some expanding bodies do create highly accurate delta zones. This got me thinking and i have come to realize all the delta zones which showed change in supply/demand dynamics required some kind of confirmation.This confirmation emerges on the next bar either in the form of continuation or a retracement.

Would like to hear your views on this.

And in my free time i am creating a pdf file on Expanding Body/Contracting Body Analysis and once i'm done would like to e-mail it to you to for some kind of feedback. I hope that is okay

Regards

Lalit Nangia

Hi lnangia,

Can you post an annotated chart or charts showing expanding bodies that do not create s/r zones versus those that create highly accurate delta zones because I've seen this discussion amongst others before somewhere last year but I can't remember whom.

Simply, it seems you're not alone in noticing this. Yes, I welcome to have the opportunity to review what you've put together and will give feedback.

Best Regards,
M.A. Perry
http://www.thestrategylab.com