szubaark wrote:
ES 5min 10/4 (Eastern Time)
At 10am we have 2 Key Economic Reports. Prior to the release of the Econ News, market forms a Red WRB HG "prior" The HG area gets filled but one can use the WRB Bar Area. At 10 news gets released market makes new lows so the WRB Bar area is NOT FILLED(just the gap area)
Then at 10:40 Eastern we get another WRB Hidden Gap#1 as labaled, then Price Continues lower.
This fits Strong Continuation Price Action Definition #1 "Defined at producing two or more same color WRB Hidden Gaps(they dont need to occur consecutive as in back to back) in which one of the WRB HG's is a breakout interval below the most recent reaction low(bearish continuation) price action before the next swing point. I did take Short there Real Time so this isnt in hindsight.
I hope Niha can correct me if something im seeing wrong.
Hi,
You have two choices of what to use in a WRB interval:
* The body area
* The hidden gap area
Thus, the shadows are not to be used as if you're using the RANGE between high / low unless the high / low equal the open and close.
Besides that...everything else you explained is correct and the price action that occurred after the annotated "WRB Hidden Gap #1" would qualify (transform) that WRB Hidden Gap into a WRB Zone.
That WRB Zone could have then been used as a profit target for any Long signals that occurred below it or used as key price area to look for trade signals (Short or Long) when the price action re-enters the WRB Zone.
Thus, check your 5 min chart of today's Oct 5th Tuesday price action.
Regards,
M.A. Perry