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The below attached chart is in response to wrblearner question involving consecutive WRB's @ viewtopic.php?f=5&t=405&p=484#p484

However, my chart example involves price movement going down as in c1 < c2 < c3 < c4 < c5.

wrb 1 = c4
wrb 2 = c5
wrb 3 = c4
wrb 4 = c5

The WRBs with the color highlights are the important WRBs that represent a key change in supply/demand and they are then called WRB S/R Zones. All the 4 of the WRB's are via a different tutorial chapter. Thus, you cannot combine wrb 1 and 2 to make one big WRB S/R Zone and the same is true for wrb 3 and 4. However, had wrb 1 and 2 occur via the same WRB tutorial chapter...that's when you can combine them to make one big WRB S/R Zone and the same is true for wrb 4 and 5.

However, as noted in my above reply, you may see back to back (consecutive) WRBs but it's not common to see back to back (consecutive) WRB S/R Zones. Thus, not all WRBs qualify as a WRB S/R Zone as in a key change in supply/demand. In addition, it's even more rare to see back to back (consecutive) WRB S/R Zones via the same tutorial chapter as in via being produced by the same market reason.

Simply, try to look at wrb 1 and wrb 3 as the confirmation WRBs that a key change in supply/demand has occurred and look at wrb 2 and wrb 4 as a continuation of the price action confirmed by the prior wrb regardless if the continuation wrb is gaining strength (directional movement will continue) or becoming exhausted (increases the chance of a reversal).

Also, take a close look at wrb 4 in comparison to wrb 3. The color highlights implies that wrb 3 became a WRB S/R Zone upon completion of it's interval whereas wrb 4 was not important (gray highlight) until the price action did something very unique (not rare) that converted that WRB into a WRB S/R Zone (blue highlight).

Regardless, all the WRBs annotated on that chart have a lifespan that ended where the highlight ends and that in itself can differentiate one WRB S/R Zone from another WRB S/R Zone as stated in the advance WRB Analysis Tutorial chapters 4 - 12.

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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com

Thanks for your reply.

I got lost as to where to post my questions. I'll start posting my charts/questions here from now on.

I have attached today's(11/17) USD/JPY M5 chart.

In the box A, there are two WRBs.

In the area marked by box B, price reacted at a certain level. How can I use WRB to spot which level price would react in that area - whether the last WRB or the one before that?

Thanks.

Hi,

The WRB Analysis Tutorial chapters 1, 2 and 3 v2.0 (study guide) is at http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=61&t=418 and it's very helpful if you refer to specific information in the tutorials when you have questions about WRBs or WRB S/R Zones on your chart. That will help others learn too when they read your message post and my replies.

With that said, both your WRB's within Box A are not WRB S/R Zones all by themselves as described in the tutorial chapters 1, 2 and 3. In fact, one of them is not a WRB Hidden GAP as described in tutorial chpater 1. In addition, that price action (Box A) itself did not occur within any known prior WRB S/R Zone.

However, you mention before that your entry signals involves Japanese Candlestick patterns. Therefore, candlestick patterns can be used to generated WRB S/R Zones as any other trade signal you may be using as described in detail in tutorial chapter 3.

Simply, Box A itself has a bullish harami and a bullish white hammer pattern. Thus, the price action of any of those candlestick patterns can be used to generate a WRB S/R Zone as explained in tutorial chapter 3.

As for Box B, there's no WRB S/R Zone.

Last of all, see my attached chart of WRB S/R Zones I saw although I didn't include the bullish harami price action as a tutorial chapter 3 WRB S/R Zone that would have overalp the WRB S/R Zone 2 shown on the chart. Simply, this is a rare situation where WRB S/R Zones from the same tutorial chapter 3 can be merged as one WRB S/R Zone although the lifespan of that zone had closed a few intervals before the appearance of WRB S/R Zone #3.



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

http://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com