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Forum for price action traders that want to learn WRB Analysis basic tutorial chapters 1, 2 and 3 prior to purchasing our advance trade methods. Hashtags: #wrbanalysis #wrbzone #wrbhiddengap #priceaction #trading
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 Post subject: DOK Chapter 3
PostPosted: Wed Jul 21, 2021 8:34 am 
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Joined: Fri Jul 16, 2021 12:18 am
Posts: 12
Hi,

Here’s my DOK for chapter 3. It takes you through one of my strategies and how a WRB Zone was incorporated within it. In addition, the narrative below includes some of my thought processes. I thought that may be important going through this exercise.

This strategy uses two charts…one is a higher frame that’s used for context (big picture) and the other is a lower frame for signals and trade management. This follows the Fractal Energy (or multiple timeframes) philosophy. The higher frame chart is using Delta Bars (1500) and the lower frame chart is using Range Bars (10). If you’re not familiar with Delta Bars it’s just creating a new bar once it reaches a set value for delta (1500 in this case). An up-Delta bar would have 1500 more traded at the ask than at the bid before closing the bar and starting a new bar. A down-Delta bar would have 1500 more traded at the bid than at the ask before closing the bar.

This strategy uses Anchored VWAPs as demonstrated in MIDAS technical analysis on the Delta bar chart. An anchored VWAP is drawn on each reactionary high in a down trend and in this context are know as resistance curves. Once you see the price action breaking above these curves, it’s a sign that the downward price move is terminating.

You’ll also notice the term “Shorting of the Thrust”, terminology borrowed from the Wyckoff method. This is where each drive downward is making less progress and signals stopping action. Some may know this type of pattern as a 3-drives pattern.

Once the most local reactionary high from where the last resistance curve was drawn is broken, the WRB Zone is established and is defined from that reactionary high down to the lowest low between the reactionary high and the point where it was broken. This will be the area of interest once price returns to it.

Note, I’ve included and Early Entry Point (EEP) trade within this DOK. This is not part of the DOK, but is include to demonstrate how I think and what actions I would take.

Once the WRB Zone is established and price returns to it, I switch over to the lower frame chart. Note, the higher frame chart is strategic in nature whereas the lower frame chart is all about tactics. Although I working mostly with this chart at this point in time, I don’t lose sight of the higher frame chart. On this lower frame chart, you’ll see three trades.

Before going any further, I want to point out that I use confirmed swings for an initial stop and also for trailing stops. When price exceeds a recent swing high, the low in-between is considered confirmed. When price exceeds a recent swing low, the high in-between is considered confirmed. Since the market is fractal in nature, let me point out here that I’m picking out the smallest swings within the lower frame chart, which may be difficult to see on this scale. There is a logic to this and I just wanted to point it out now before going through the chart.

Trade 1 is the EEP trade. As noted, long entry here is on the break of some local highs. The initial stop is based on a confirmed swing low. Note that I use confirmed swing lows to trail the stop and you’ll see hash lines on the chart to show this. The trade terminated on a trendline break. During this trade the WRB Zone was established.

Trade 2 waits for the price action to return to the WRB Zone. The break of a downward trendline signals the Long entry for this trade. The initial stop is placed below the recent low, which was not confirmed at the point of entry. As price advances, confirmed swing lows are used to trail the stop. The price action stalls at an unfilled WRB-HG and also penetrates through the upward trendline. The trade is terminated at this point.

At this point I’m looking for price action to return back to the WRB Zone. In addition, I’m looking to draw a downward trendline to signal a long entry. The volatility contracts and gets messy until price breaks downward with allows for a the trendline.

Trade 3 starts with a long entry at the trendline break. The initial stop is placed below the recent low, which is not confirmed at the point of entry. As price action advanced upward confirmed swings are used to trail the stop. There’s a WRB-HG above what looks like there a good chance that it will get filled based on the prior contracting volatility. At this point I would start drawing Anchored VWAP support curves, which I forgot to include that on the chart. Also, I have an upward trendline that’s established once the WRB-HG was filled. I’m looking for the next unfilled WRB-HG as a profit target. Half the position is taken off at the unfilled WRB-HG, where price begins to stall, and the stop is tightened up…this is not a confirmed swing low. As price fills and breaks above the WRB-HG, the stop is moved to just below the bottom of the filled WRB-HG. The price action finally breaks the upward trendline where the second have of the position is liquidated.

Thanks,
gbrad


Attachments:
gbrad-DOK-Ch3-UsersStrategyWRBZones-Plus-TradeMgmt-Chart1.png
gbrad-DOK-Ch3-UsersStrategyWRBZones-Plus-TradeMgmt-Chart1.png [ 194.02 KiB | Viewed 127 times ]
gbrad-DOK-Ch3-UsersStrategyWRBZones-Plus-TradeMgmt-Chart2.png
gbrad-DOK-Ch3-UsersStrategyWRBZones-Plus-TradeMgmt-Chart2.png [ 238.35 KiB | Viewed 131 times ]
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 Post subject: Re: DOK Chapter 3
PostPosted: Tue Aug 24, 2021 4:51 pm 
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Joined: Fri Jul 16, 2021 12:18 am
Posts: 12
Hi M.A. Perry,

Can you review my chapter 3 DOK?

Thanks,
gbrad


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 Post subject: Re: DOK Chapter 3
PostPosted: Wed Aug 25, 2021 9:16 pm 
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Joined: Sat Jan 10, 2009 2:06 pm
Posts: 4331
Location: Canada
Hi gbrad,

Excellent DOK explanation of how you're using your trade strategy with tutorial chapter 3. I was able to understand it because there's two other members in the private thread section also using VWAP with WRB Analysis. They've been maintaining a private trade journal here for about 10 months...both trading Eurex/Euronext futures.

In addition, there are a few members for many years back that did the same via VWAP in combo with WRB Analysis.

You have any past quantitative statistical analysis of your trading via VWAP in the past and were you using VWAP alone or in combo with another trade strategy ?

Regards,
M.A. Perry


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 Post subject: Re: DOK Chapter 3
PostPosted: Fri Aug 27, 2021 12:07 pm 
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Joined: Fri Jul 16, 2021 12:18 am
Posts: 12
Hi M.A. Perry,

Sorry, I don't have any past stats on Anchored VWAP. I do find it to be a very useful tool for finding good trade location (see chart below...VWAP support yesterday and today).

I'll assume that I'm doing this correctly for chapter 3 DOK and start to post real-time examples.

Thanks,
gbrad


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vwap1.png
vwap1.png [ 81.74 KiB | Viewed 108 times ]
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