TheStrategyLab.com Price Action Trading Support Forum

What I got from having read your chapters is to pay attention to price action activity following a key market event.

If the event (or series of events on longer timeframes) generates a WRB with an HG confirmed with a price swing or strong continuation move, the body of the WRB will give us an S/R Zone which we can used to identify an important area where supply/demand has been altered.

I have posted a long term monthly chart of the EUR/USD showing the WRB Zone and Gap in the shaded area. Zone Range: 1.5583 to 1.4568

The price swing was very strong and it continued for more than 3 consecutive bars. And now it has retraced back to the important WRB ZONE identified on the chart.

Since I missed the consolidation around and push through the lower part of the Zone after crossing the 62% Fib retracement, my trading options are now as follows:

1) Wait for a breakout of the WRB range.

2 Wait for a pullback test at the WRB's breakout level to see if it holds up.

seabird

Hi Seabird,

First of all, thanks for the D.O.K. and you're correct in that key market events are important in the first three tutorial chapters. However, in contrast, key market events are unimportant in the advance tutorial chapters 4 - 12. The advance tutorial chapters only identifies key changes in supply/demand via price only.

As for your chart...now that the price action is within the WRB S/R Zone, let your trade signals tell you what to do next. Simply, document your trade results had the trade signal occurred within zones versus trade signal that does not occur within zone. Thus, this is the first WRB S/R Zone you've noticed and you'll now be able to determine the merits of WRB S/R Zones as you find more zones and more trade signals to do proper comparisons.

With that said, you mentioned the following...



You saying there was a trade signal you missed via your trade methodology within that consolidation area. However, if you're not talking about your trade signals and trying to design a trade method via what you're currently seeing in EurUsd, it seems like breakouts and/or pullback retest of a breakout is something you're interested in developing a trade method.

Therefore, please clarify because I'm not sure if your trade signals involve consolidation areas or breakouts or maybe both via different methods.

Best Regards,
M.A. Perry

Thanks for your comments.

I have posted a chart which hopfully will shed some light regarding my comments.

seabird

Hi seabird,

I'm having a lot of problems understanding your chart because it's annotated with the comments that the "shaded area = WRB S/R Zone". Thus, you talking about the blue shaded area and if so...what is the source of that as a WRB S/R Zone. More to the point, is your WRB S/R Zone via something from tutorial chapter 2 or tutorial chapter 3

Best Regards,
M.A. Perry