TheStrategyLab.com Price Action Trading Support Forum

Hi Mark ,

Attaching my charts .. and some question's ....

From the charts, i could see overlapping WRB hidden gap...or should i call this as consecutive? ... are those valid Hidden GAP WRB's or am i erring in my interpretation .

I typically trade in 2 signals. One is where i wait for price to shrink in volatility (after a big range bar . .so effectively all this small bars should be inside bars) ... i trade breakout of this narrow range. One more signal for me is when i wait for price to test a particular S/R zone 3 times or more and then enter via a limit order above/below this range.

None of this occurred in the hidden WRB hidden gap range. Or am i missing any valid trade signal here?

Regards
Vipul Bhadra

Hi,

It's important to remember the following order...

WRB ---> WRB Hidden GAP ---> WRB S/R Zone

Simply, not all WRB will qualify as a Hidden GAP and not all Hidden GAP will qualify as a WRB S/R Zone. It's also important to remember that a WRB S/R Zone has a specific lifespan that dictates how long they can be used.

I highly recommend to only draw color zones if something qualifies as a WRB S/R Zone and only draw arrows or lines to something that only qualifies as a Hidden GAP. Thus, what you show on your charts is in asking if #3 and #4 is overlapping is to say that #3 has not been filled (is still active). #3 is a Hidden GAP but does not qualify as a WRB Zone. Therefore, there's no need to draw any highlighted color zones to it.

My point is that it's "not common" to have overlapping zones unless the intervals are still open (not filled).

Once again, drawing arrows or lines only to Hidden GAPs that are not zones and only drawing color zones to qualified WRB Zones will prevent getting confused about what's overlapping or successive. Thus, we're only interested in qualified WRB Zones and most Hidden GAPs do not qualify as a WRB Zone just like most WRB's do not qualify as a WRB Hidden GAP. Therefore, on your charts if we were to pretend every Hidden GAP is a WRB Zone that's still open...only ones you would highlight as a valid zone for use is #1 and #4 because #2 and #5 have been filled in by the price action that occurred after them.

With that said, I'm now going to assume that your comments are based upon tutorial chapter 3 pattern signals as zones and not tutorial chapter 2 involving key market events that trigger zones.

Therefore, to keep me from getting confused...can you highlight on your charts where your breakout entry signals are at via an arrow or line along with highlighting the WRB Hidden GAPs with arrows. This helps me to see and merge WRB Analysis with your breakout strategy.

Best Regards,
M.A. Perry

Hi Mark ,

Thanks for your comment's. Attaching a previous chart of mine. I actually missed on the trade due to personal reason (I have a day job!)
Have marked horizontal lines to identify my entry point ....Orange arrow indicate my interpretation of WRB Hidden Gap's.


Does it make sense now?

EDIT: Sorry, i assumed you know my strategy. One of which is to wait for price to test certain price level atleast 3 times (I consider this as a tested resistance zone), before i trade in direction of breakout (i consider volume for upside breakout). Since i dont know what hand market will show, i keep stop orders on both side. In case i get filled on the long and i see low volume, i close out my trade. For shorts, i don't consider volume.

Regards
Vipul Bhadra