wrb analysis tutorials 010613 v2.3 1

8/11/2019 WRB Analysis Tutorials 010613 v2.3 1

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uary 6thday 2013

Version 2.3 Contact Us:[email protected]

!able of Contents

"ntroduction----------------------------------------------------------> Page 2 - 3

WRB Tutorial Chapter 1----------------------------------------------- > Pages 4 19

Introu!tion of WRB" WRB #ien $%P an WRB &one

WRB Tutorial Chapter 2-----------------------------------------------> Pages 21 42

'e( )ar*et +,ents as WRB &ones

WRB Tutorial Chapter 3-----------------------------------------------> Pages 43 3

Trae .ignals as WRB &ones

Trae )anage/ent after Trae +ntr( -------------------------------> Page 4 0

%,an!e Tutorial Chapters # $ 12------------------------------------> Page 9

%eonstration o& 'no(ledge )%*'+--------------------------> Pages 1

WRB %nal(sis pates -------------------------------------------------> Page 2

Cop(right an egal .tuff ----------------------------------------------> Page 3 4

Su,,ort5ans6ering (our trae relate 7uestions8 to this stu( guie is &reean onl(pro,ie to traers that oin our T. .upport :oru/@http;


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"ntrou!tion

This nalysisbasi! tutorial !hapters 1" 2" 3 are eAtre/el( etaile to reo4e as uchsub5ecti4ityas possible= It@s one of the pri/ar( reasons 6h( it@s a tough rea for so/e traers tr(ing to

use !on!epts fro/ the free stu( guie to better unerstan the pri!e a!tion the(@retraing= et" traers that sa( it@s an eas( reausuall( are traers that ha,e a basi!unerstaning of suppl(


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traing instru/ents 5sto!*s" futures" +T:s or foreA8 be!ause the support 6ill help shorten (our learning!ur,e of WRB %nal(sis as (ou /erge WRB %nal(sis 6ith (our trae signal strategies=

et" if (ou 6ant to *eep (our 7uestions pri,ate" (ou !an ouble !li!* on our user na/e@(rbtraderinthe !hat roo/ or 6e !an setup a pri,ate threa for (ou at the T. .upport :oru/ to is!uss WRB%nal(sis Tutorials that@s spe!ifi! to (our traing instru/ents= Fust re/e/ber that if (ou use the T.

.upport :oru/ to as* 7uestionsplease post !hart eAa/ples to pre,ent an( /isunerstanings=

With that sai" (ou !an use the support 6e pro,ie an the belo6 infor/ation to properl( eter/inethe /erits of WRB %nal(sis=

Co/pare the results of any as,ectof (our trae strategies 5entr( signals" stop


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as*ing s,eci&ic questionsDespe!iall( 6hen (ou@,e rea so/ething in this te!hni!al stu( guiethat@s un!lear or oesn@t /a*e an( sense to (ou=

%lso" do notpost 7uestions that as* if an inter,al on (our !hart is aor idden Abe!ause (ou 6ill be able to ans6er su!h 7uestions ,ia reviewingthese !on!epts in this stu( guie=

This stu( guie has !lear efinitions along 6ith !hart eAa/ples= In !ontrast" if (ou onGt unerstanso/ething IG,e sai in this stu( guie===please quote the stateent6ith (our 7uestion so that I !anrepl( to (ou 6ith an ans6er thatGs easier to unerstan in !o/parison to 6hat IG,e sai in this stu(guie= In aition" prior to posting 7uestions about if a parti!ular WRB #ien $%P 7ualifies as a

>one===7uote the E,rice action de&initionEfro/ tutorial !hapter 2 that (ou thin* best fits theWRB &one pri!e a!tion on (our !hart= IGll then repl( ,ia a si/ple;es or Foalong 6ith aitionaltraing tips if /erite=

With that sai" unerstaning the pri!e a!tion ,riorto the appearan!e of an( trae signal or profittarget is !riti!al to traing profitabl( an it 6ill eAplain to (ou 6h( the /ar*et i 6hat it i= %lso" it6ill allo6 (ou to aapt (our traing plan to the /ar*ets 6hene,er the /ar*ets !hange 5a !hange thathappens /an( ti/es ea!h (ear8 so that (ou !an a,oi ra6o6n perios or 6orst=

.i/pl(" unerstaning the /ar*ets is an edgethat !an be !onsistentl( eAploite along 6ithe/po6ering (ou to *no6 6hen *e( s6ing points or strong !ontinuation pri!e a!tions are /ost li*el( too!!ur=

Volatility Contraction GGGH GGGH idden A---> WRB &one

In tutorial !hapter 1" (ou@ll learn that4olatility contractionis the re7uire/ent that /ust o!!ur priorto a inter4ala WRB inter,al that represents in!reasing ,olatilit( but /a( not !orrelate toin!reasing ,olu/e= HeAt" (ou@ll learn that onl( a WRB inter,al /a( 7ualif( as idden Ainter4al= %ll WRB #ien $%P represents ,olatilit( spi*es an ,olu/e spi*es= Thus" if (ou traeso/ething li*e :oreA" (ou@re not a fan of using ,olu/e or (ou@re loo*ing for a 6a( to i/pro,e (our,olu/e anal(sisit@s highl( re!o//ene that (ou use WRB %nal(sis regarless if (ou trae sto!*s"futures" foreA or eA!hange trae funs=

hat eactly is nalysis

WRB %nal(sis is a /etho that in,ol,es the !o/bination of anal(Eing !hanges in ,olatilit( ansuppl(


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The 6or WRB /eansieangeody5!anlesti!* !hart users8 orieangear5bar !hartusers8 an there are ifferent t(pes of WRBs base upon ,olatilit( anal(sis" gap anal(sis orsupport Trae .trateg( ---> Traing Plan

ther i/portant ,ieces o& the ,u99le5traing plan8 are /ar*et eAperien!e" is!ipline" /one(/anage/ent" proper !apitaliEation" position siEe /anage/ent" stress /anage/ent" proper bro*erplatfor/" proper trae 6or*station" proper at ho/e


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nor fiA (our traing plan if an( of the i/portant pie!es are /issing or inae7uate=

With that sai" WRB %nal(sis is an unerstaning of the pri!e a!tion an that /a*es it /u!h /orei/portant than ust entr( signals= .o/e !lients use WRB %nal(sis to get a better unerstaning of 6hatreall( is leaing their traing instru/ent for a parti!ular traing a(" other !lients onl( use WRB

%nal(sis to i/pro,e the trae /anage/ent 5after entr(8 of /an( ifferent t(pes of /ethos or traingst(les 5a( traer" s6ing traer or position traer8 an then there are other !lients that use WRB%nal(sis to i/pro,e the perfor/an!e of their o6n trae signal strategies=

#o6e,er" if (ou@re intereste in our trae signal strategies" WRB %nal(sis has been /erge into all ofour trae strategies 5:JB" KC)" JTR" .TR" %P%R" %FCTR8 to i/pro,e their perfor/an!e along 6ithgi,ing our strategies an aaptable ele/ent 6hene,er /ar*et !onitions !hange= )ore infor/ationabout our trae signal strategies /erge 6ith WRB %nal(sis @http;


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Tren .trateg(

Range .trateg(

Profit Target .trateg(

Jolu/e .prea %nal(sis .trategies @http;


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+ureA :iAe In!o/e Keri,ati,es 5futures8 BHK" BB an .!hatE

+uroneAt :utures :T.+-1 an C%C-4

C)+ :utures +uro:M + an +C

Treasur( :utures T-Hotes &T" &H" &: an T-Bons &B

:oreA Curren!ies $bp Range of inter,al 1

WRB 5its range8 > Range of inter,al 2

WRB 5its range8 > Range of inter,al 3
http://www.thestrategylab.com/TradingInstruments.htmhttp://www.thestrategylab.com/TradingInstruments.htmhttp://www.thestrategylab.com/TradingInstruments.htm


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ou !an use an( nu/ber greater than the abo,e three inter,als as long as it@s not less than three ue tothe beha,ior of ,olatilit( anal(sis be!ause it@s less reliable an too iffi!ult to anal(Ee !hanges insuppl(


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http;


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idden A

The ter/ idden Ais a poor es!ription an /a( !onfuse so/e traers=

:irst of all" the phrase #ien $%P i/plies the pri!e a!tion 6ithin the range of the inter,al 5ifferen!e

bet6een #igh an o68 onbar chartsor range of the bo( 5ifferen!e bet6een pen an Close8 oncandlestic- chartsare t(pi!all( ,ie6e b( /ost traers as onl( a ,olatilit( spi*e or eApansioninter,al 6ithout realiEing the pri!e a!tion in,ol,es trae a!tions of -ey ar-et ,artici,ants= Thus"there@s a 6ealth of hidden in&orationin these eApansion inter,als that ientifies i/portant traepositions b( *e( /ar*et parti!ipants6hi!h is the reason 6h( I starte using the phrase #ien $%P=.i/pl(" the WRB #ien $%P represents *e( !hanges in suppl(


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http;


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idden A )&illed+

The !hart eAa/ples belo6 ha,e t6o !harts 6ithin ea!h i/age= The !hart on the left sho6s a WRB#ien $%P 6hereas the !hart on the right has the eAa!t sa/e pri!e a!tion 6ith the onl( ifferen!e isthat the WRB #ien $%P has been re/o,e 5erase8 to re,eal a #ien $%P along 6ith sho6ing the

efinition of a pri!e a!tion that &ills the ,rice area o& a idden A=

This is a ,er( i/portant !on!ept for (ou to re/e/berpri!e a!tion filling in the pri!e area of a WRB#ien $%P ,ia tra4ersing co,letely throughthe pri!e area of the WRB #ien $%P=

Iini IS &utures @ http;


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Iini ;< &utures @http;


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:irst of all" the efinition of a Hor/al $%P is an e/pt( pri!e area bet6eenyesterday/spri!e a!tion!lose an today/spri!e a!tion open= The bigger the gap bet6een t6o traing a( sessions i/plies a *e(!hange in suppl(


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Fasdaq FK &utures @http;


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Uses &or a idden A

WRB #ien $%Ps sho6s 6here *e( /ar*et parti!ipants ha,e open trae positions or eAite traean their a!tions has !ause a *e( !hange in suppl(


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%nal(sis Tutorial Chapter 2

:irst all" not all WRB #ien $%Ps are >ones= To 7ualif( a WRB #ien $%P as a WRB &onere7uires a spe!ifi! ,rice action de&initionin,ol,ing s(ing ,oints or strong continuation ,riceactionsis!usse fro/ basi! tutorial !hapters 2 3 or a,an!e tutorial !hapters 4 12=

In aition" tutorial !hapter 2is the onl( tutorial !hapter of 1 12 that in,ol,es using *e( /ar*ete,ents= Thus" basi! tutorial !hapter 3an a,an!e tutorial !hapters # $ 12onl( in,ol,es pri!e a!tionanal(sis 5no *e( /ar*et e,ents8 to eter/ine *e( !hanges in ,olatilit( an *e( !hanges insuppl(


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:urther" it oesn@t /atter 6hat@s sai in the *e( /ar*et e,ent an don/ttr( to use the infor/ation toprei!t pri!e ire!tion= The onl( thing (ou shoul be loo*ing for is a ,rice reaction5*e( !hange insuppl(


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et" if (ou !an@t affor real-ti/e ne6s sour!e" t6itter real-ti/e fees are eA!ellent resour!es be!ausethe( !an be use on !o/puters" iPhone" iPa or anroi=

T6eetKe!* @http;


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I@ll no6 list so/e eAa/ples of *e( /ar*et e,ents along 6ith !olor !oing the/ 6ith 5 8 an 5 8 ots=The 5 8 e,ents /ust ha,e a &irstWRB #ien $%P 5atone= In !ontrast" the 5 8 *e( /ar*et e,ents are not re7uire to prou!e a s6ing point norstrong !ontinuation pri!e a!tion to 7ualif( the &irstWRB #ien $%P for use as a WRB &one=

:)C %nnoun!e/ent

:)C )inutes

Philaelphia :+K .ur,e(

Beige Boo*

Ri!h/on :e IneA

Current :+K


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Iconoic 'ey Fote:When a *e( e!ono/i! e,ent is postpone to the neAt traing a( for 6hate,er reason===the/ar*et 6ill so/eti/es still prou!e a WRB #ien $%P at the ol esignate ti/e as if the e,ent ha

not been postpone be!ause /an( traers forgot it has been postpone= :or eAa/ple" if thereGs a)ona( holia( 5/ar*ets !lose8===the Wenesa( 13a/ est +I% Petroleu/ .tatus Report ispostpone until Thursa( at 13a/ est= et" so/eti/es the Wenesa( 13a/ est pri!e a!tion 6illstill prou!e a WRB #ien $%P e,en though the +I% Petroleu/ .tatus report 6as /o,e to Thursa(at 13a/ est=

rea-ing Fe(s 'ey


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8irst idden As

%s a re/iner" WRB %nal(sis 5WRBs or WRB #ien $%Ps8 arenottrae signals= Instea" the(ientif( *e( !hanges in suppl(


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S(ing Aoint and Strong Continuation Arice ction %e&initions

:irst of all" as /entione abo,e" a &irstWRB #ien $%P is the onl( WRB #ien $%P atBa&tera *e(/ar*et e,ent that !an be use to eter/ine if there@s a *e( !hange in suppl(


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2+Pri!e a!tion efine as the follo6ing

'e( )ar*et +,ent Inter,als These inter,als are the4olatility contractioninter,als be!ause the(are o!!urringbe&orethe &irstWRB #ien $%P 5,olatilit( eApansion8= %lso" ea!h of these inter,als!an be either a Close ? pen" Close > pen or pen > Close= et" one of the inter,als in the ,olatilit(

!ontra!tion /ust ha,e o!!urre atthe release ti/e of the *e( /ar*et e,ent=

Bullish .6ing Point - Pri!e a!tion 6as e!lining an then re,erse ire!tion 5s6ing point in,ol,ing a*e( /ar*et e,ent8 an then pri!e rises ba!* up6ars to prou!e three !onse!uti,e higher !losinginter,als an ea!h inter,al is 5Close > pen8,riorto the neAt s6ing point= The &irstWRB #ien$%P is one of the three !onse!uti,e higher !losing inter,als an ea!h inter,al is 5Close > pen8=

:urther" the three !onse!uti,e higher !losing inter,als in,ol,ing the &irstWRB #ien $%P" the( /usto!!ur a&terthe *e( /ar*et e,ent= %lso" the &irstWRB #ien $%P /ust ha,e share at least one ti!*6ith the range of the ,olatilit( !ontra!tion to pre,ent loo*ing li*e a !ontinuation pri!e a!tion instea ofas a s6ing point=


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8ore IUBUS% currency @ http;


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8ore ABUS% currency @ http;


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U.S. %ollar currency @ http;


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2+This is (our first introu!tion into the 6ors42" !ontra!ting ,olatilit( an41= The letterVrepresents a spe!ial t(pe of WRB #ien $%P that@s a ,olatilit( spi*e 5eApaning ,olatilit(8 as a

brea-outof the ,rior!ontra!ting ,olatilit( 5/ini/u/ of three inter,als8= .i/pl(" a ,1 WRB #ien$%P an ,2 WRB #ien $%P are ,olatilit( brea*outs of the /ost re!ent ,olatilit( !ontra!tion in thefollo6ing pri!e a!tion se7uen!e= %lso" if (ou@re !onfuse or !urious about 6h( 6e label the pri!e a!tion

se7uen!e as42 GGGH 41instea of41 GGGH 42there@s an eAplanation at the T. .upport :oru/ Ohttp;


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Bearish Continuation - Pri!e a!tion 6as e!lining 5it !ontaine a /ini/u/ of t6o ar* lines 6ith lo6er!loses8 before an abo,e the !lose of the ,2 Kar* WRBthen follo6e b( !ontra!ting ,olatilit( thattra,erses into a ,1 Kar* WRB 5,olatilit( spi*e8 in 6hi!h the pri!e a!tion !ontinues e!lining 5it!ontaine a /ini/u/ of t6o ar* lines 6ith lo6er !loses8 after an belo6 the !lose of the ,1 Kar* WRBprior to the neAt s6ing point=

The41 /ust o!!ur atBa&terthe *e( /ar*et e,ent= #o6e,er" if using the42 as the WRB&oneit /ust o!!ur atBa&terthe *e( /ar*et e,ent=

Iini ;< &utures @ http;


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pri!e a!tion that o!!urs after6ars= Thus" the neAt e!ono/i! report e,ent oes not !an!el the WRB&one of a prior e!ono/i! report e,ent=

rea-ing Fe(s I4ent- Jali for use as a WRB &one until the Eone is !o/pletel( fille b( the pri!ea!tion that o!!urs after6ars= Thus" the neAt brea*ing ne6s e,ent oes not !an!el the WRB &one of a

prior brea*ing ne6s e,ent=

With that sai" 6e o not re!o//en s!rolling ba!*6ars on (our !harts to ,ie6 histori!al ata to finWRB &ones that are still open for trading ,ur,oses= Therefore" if (ou@re using s/all ti/e fra/es5e=g= !hart fra/es that are 1 /ins or less8" unfille WRB &ones fro/ /an( a(s ago" 6ee*s ago"/onths ago or (ears ago are no longer i/portant for in,ol,e/ent 6ith a trae signal eA!ept for use asprofit targets or eu!ation purposes onl(= Fust the sa/e" if (ou@re using higher ti/e fra/es 5e=g= !hartfra/es that are /ins or higher8(ou@ll ob,iousl( be using unfille WRB &ones fro/ se,eral a(sago or longer but 6e still o not re!o//en s!rolling ba!*6ars on (our !harts to ,ie6 histori!al atato fin WRB &ones that are still open for traing purposes=

.i/pl(" (ou shoul be able to see (our unfille WRB &ones on (our !urrent !hart settings for traingpurposes(ithoutha,ing to s!roll ba!*6ars in (our !hart soft6are to re,ie6 histori!al ata an6ithout ha,ing to /anipulate (our !harts ,ia !o/pressing the inter,als to s7ueeEe /ore ata info intothe !hart 6ino6= The purpose 6ith this lifespan rule is to help pre,ent !ounter-tren traing be!ausesu!h is /ore li*el( to o!!ur 6hen using ,er( ol unfille WRB &ones= Besies" the /ore re!ent WRB&ones is enough to *eep bus( an( traer=

et" if (ou eter/ine that a parti!ular unfille WRB &one is i/portant at the ti/e of its for/ation6rite o6n on paper the pri!e range of the WRB &one to pre,ent e,eloping a habit of s!rollingba!*6ars in (our !hart soft6are to re,ie6 histori!al ata to fin WRB &ones= #o6e,er" if (ou@reeter/ine to use ol unfille WRB &oneslo6er (our ris* eAposure ,ia ra/ati!all( e!reasing (ourposition siEe an


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pri!e is no longer insie the WRB &one= et" the na/e support


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Iuro8 6I&utures @ http;


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indsight Charts 4ersus eal !rading Conditions identi&ication o& idden Asand >ones

There are /an( hinsight !harts poste at the is!ussion foru/ in the WRB %nal(sis TutorialsLuestion N %ns6er threas= et" ust be!ause (ou !an easil( ientif( WRBs" WRB #ien $%Ps an

WRB &ones on hinsight !harts oesnGt i/pl( it@s ust as eas( 6hen traing 6ith real /one( orsi/ulator in real-ti/e /ar*et !onitions=

Therefore" hereGs a si/ple tri!* to help (ou tra,erse fro/ hinsight !hart eApert to real tradinga,,lication=

:irst of all" (ou /ust deonstrate your -no(ledge5K'8 in the Luestions N %ns6ers threa ,iathe etaile instru!tions at the foru/ in the WRB %nal(sis Tutorial se!tion= HeAt" in,ol,ing the pri!ea!tion itself in real-ti/e traing !onitions===

+,er( ti/e (ou see a single inter,al pri!e spi*e that has a 6ie range 5,olatilit( eApansion8 in!o/parison to prior inter,als" thereGs a goo !han!e the inter,al 6ill !o/plete as a WRB= If a WRB is!onfir/e" !ontinue /onitoring it to see if the inter,al after the WRB is able to !onfir/ 5upon inter,al!o/pletion8 the WRB as a WRB #ien $%P= In fa!t" it@s eas( to !oe a WRB #ien $%P in an(!harting soft6are that has !oing !apabilities to /a*e it easier to see WRB #ien $%Ps for/ in real-ti/e=

In aition" (ou 6ant to /onitor an( contracting 4olatilityinter,als 5a /ini/u/ of three inter,als8that /a( e,elop after a !onfir/e WRB #ien $%P be!ause !ontra!ting ,olatilit( inter,als 6ill oftenset up another eApansion inter,al 5up or o6n8 that upon !o/pletion /a( 7ualif( the e,anding

4olatilityinter,al as another WRB #ien $%P=

In aition" it@s highl( re!o//en (ou use a ata progra/ that has re,lay ca,abilitiesor use ascreen recorder to re!or (our !harts in real traing !onitions so that (ou !an use (ourrepla(


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Un&illed >one 4ersus 8illed >one Ia,les

n the !hart belo6" 6e@re no6 going to ta*e a !loser loo* at the intraa( pri!e a!tion of the Russell2 +/ini +R2 futures ,ia the 3/in !hart on Fune 21st Thurs - Fune 22n :ria( 2= %s (ou !ansee fro/ the !hart there a oEens of WRB #ien $%Ps that !oul be use as WRB &one=

Iini !8 &utures @http;


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Iini !8 &utures @http;


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It@s eas( to eter/ine 6hi!h t(pe of *e( /ar*et e,ents ha,e i/pa!t on the pri!e a!tion of (our trainginstru/ent ,ia /onitoring the s!heule ti/e release of those *e( /ar*et e,ents to eter/ine if a s6ingpoint or strong !ontinuation pri!e rea!tion=

HeAt" !ontinue /onitoring the ientifie *e( /ar*et e,ent the neAt ti/e it appears to see if it prou!es

another s6ing point or strong !ontinuation pri!e rea!tion along 6ith re,ie6ing an( ar!hi,e !alenarsto see ho6 the e,ent i/pa!t the pri!e a!tion on (our histori!al !harts= .i/pl(" (our traing instru/ent6ill a!t ifferentl( on a !onsistent basis to a parti!ular *e( /ar*et e,ent in !o/parison to a ifferentt(pe of traing instru/ent=

:or eAa/ple" a treasur( futures traer /a( onl( follo6 a fe6 of the abo,e :+K e,ents in !o/parison toan energ( futures traer that follo6s the +I% in,entor(


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pri!e a!tion as efine b( the efinitions fro/ WRB Tutorial Chapter 2 6ithout the *e( /ar*et e,entrule re7uire/ent= :urther" the di&&erence bet(een tutorial cha,ter 2 and 3is that tutorial!hapter 2 uses a Q*e( /ar*et e,ent to trigger the pri!e a!tion efinitions for a s6ing point or strong!ontinuation pri!e a!tion= In !ontrast" tutorial !hapter 3 uses a trae signal 5not a *e( /ar*et e,ent8 totrigger the pri!e a!tion efinitions for a s6ing point or strong !ontinuation pri!e a!tion= et" if (ou o

not ha,e a trae signal strateg((ou o not nee to rea


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S(ing Aoint Arice ction

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%e&inition o& the FI

The FIis the pri!e a!tion bet6een the highest high an lo6est lo6 of the inter,als in,ol,e as(our pattern signal 5preten the generi! engulfing pattern is (our trae signal8 an 6e@,e ae anaitional pri!e a!tion rule to this generi! engulfing !anlesti!* pattern in that the +ngulfing inter,al

5!18 /ust engulf the !lose an open of a Koi inter,al 5!28 an the onl( thing (ou !are about the pri!ea!tion before !2 is that it@s e!lining= This is a ,er( si/ple pattern signal prior to learning about WRB%nal(sis=

Note: Intervals in the candlestick chart study guide version are annotated with(c). In contrast,intervals in the bar chart study guide version are annotated with (b). Thus, WR !nalysis isa""licable the same on bar charts for those that don#t want to use candlestick charts. $et, if you usecandlestick charts, it does not im"ly you#re doing %a"anese &andlestick !nalysis.

The !hart belo6 sho6s t(pi!al inter,als 5!1 an !28 in,ol,e in an( bullish engulfing pri!e a!tionalthough !2 oes not nee to be a oi= The !2 !an also be a ar* 5re8 inter,al or 6hite inter,al if the(o!!ur insie the bo( of the !1 inter,al for an engulfing pri!e a!tion=

Aroshares SS* echange traded &unds


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The FI!an be ifferent as sho6n belo6 ,ia se,eral !harts epening upon if (ou ha,e a WRBinter,al as the !1 or !2 inter,al= The first !hart belo6there is no WRB inter,al as a !1 or !2= Thus" therange in,ol,es the pri!e a!tion bet6een the #igh an o6 of those t6o parti!ular inter,als=



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In !ontrast to the abo,e !hartthe belo6 !hart has the !1 inter,al as a WRB= This !hanges the rangebe!ause 6e /ust no6 in!lue the three inter,als before the WRB an the( are sho6n as !2" !3 an !4inter,als on the !hart= Therefore" the FIno6 in,ol,es the highest high an lo6est lo6 5annotateon !harts as an 78 a/ongst all four inter,als 5!1" !2" !3 an !48=


%e&inition o& the idden A )un&illed+


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idden A )un&illed+in,ol,es t6o possibilities=

WRB #ien $%P 5unfille8 inter,al that o!!urs 6ithin the pri!e a!tion as a !1 or !2 inter,al=

&irstWRB #ien $%P that appears after (our trae signal=

%lso" it@s possible for both to appear as eAplaine further belo6= The !hart belo6 represents a WRB#ien $%P 5unfille8 inter,al that o!!urs 6ithin the pri!e a!tion as a !1 or !2 inter,al=


In !ontrast" the !hart belo6 represents a first WRB #ien $%P that appeare after the pattern signal=


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Co/paring the t6o /ost re!ent !harts abo,e that represents a WRB #ien $%P 5unfille8 that@s a !1or !2 inter,al ,ersus the first WRB #ien $%P that o!!urs after (our pattern signalthese areifferent t(pes of WRB &ones if the( 7ualif( as a s6ing point or strong !ontinuation pri!e a!tion=

%lso" if (ou@re !onfuse or !urious about 6h( 6e label the pri!e a!tionc2 GGGH c1instea ofc1 GGGH c2there@s an eAplanation at the T. .upport :oru/ Ohttp;


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!ontinuation pri!e a!tion if both t(pes of WRB #ien $%P 5unfille8 are present= Therefore" for thes6ing point ientifi!ation" use the one that o!!urs 6ithin (our pattern signal as the WRB &one=

hat i& the FI is too large o& a >one=

R%H$+ of (our pattern signal 6ill onl( be too large if (ou ha,e not ientifie properl( the *e( pri!ea!tions of (our pattern signal= That@s 6here 6e !an help ,ia the support (ou ha,e a,ailable= Thus" as*for help if the R%H$+ is fre7uentl( too large=

%lso" WRB &ones ,ia R%H$+ ha,e no reliabilit( a,antage o,er WRB &ones ,ia WRB #ien $%Ps5unfille8= et" 6hi!he,er (ou e!ie to usebe !onsistent so that (ou !an properl( o!u/ent (ourtraing plan an it@s the o!u/entation that 6ill gi,e (ou ,aluable feeba!* to properl( /a*e anaust/ents 5aapting8 (our trae strategies to !hanges in the /ar*et en,iron/ent=

hen is it !radable=

The abo,e infor/ation re,eals that (our pattern signals are still useful regarless if (ou trae the/ ornot be!ause the( !an be use as WRB &ones in ,aliating pattern signals that o!!urs after6ars if thepattern signals o!!urs 6ithin the WRB &one of a prior pattern signal=

ou onl( nee one tic- &ro any o& the inter4alsin the pri!e a!tion of (our pattern signal to o!!ur6ithin a WRB &one to be!o/e ,ali for traing= Thus" an( ti!* of a pri!e fro/ (our pattern signal thatshares a ti!* of a pri!e 6ithin the WRB &oneit@s a ,ali for traing=

The !hart belo6 is the a!tual 5not altere8 !hart of Proshares .. ,ia using the entire R%H$+ of the !15WRB8" !2" !3 an !4 inter,als in,ol,e 6ith the Bullish +ngulfing pri!e a!tion=


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Aroshares SS* echange traded &unds@http;


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#o6e,er" here in tutorial !hapter 3 there@s an aitional pri!e a!tion rule= Kefinition D1 an D2 pri!ea!tions /ust o!!ur atBa&ter a higher lo( or lo(er highor 6ithin an( pri!e a!tion (ou ha,e alrea(ientifie as ire!tional 5up or o6n8 ,ia (our o6n pri!e a!tion efinitions=

%e&inition 1 - This is abrea-outabo,e


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to pri!e a!tion !hange in suppl(


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The first WRB as a Close > pen inter,al 5onGt 6ait for the inter,al to !o/plete itself8 that appearsafter and abovethe pattern signal= This !an@t be sho6n ,ia a hinsight !hart 5another fla6 ,ialearning ,ia hinsight !harts8 but soon I@ll pro,ie a ire!t lin* to real-ti/e ,ieo=

:or eAa/ple" preten (ou@re using the 1 /in !hart inter,al 5not the belo6 !hart8 an (ou enter a trae

O 14a/= The trae be!o/es profitable an e,elops into a Close > pen WRB inter,al O 13a/,ia a ,olatilit( spi*e that@s ,riorto the neAt 1 /in inter,al !o/pleting O 11a/= ou 6oul eAit (ourtrae position O 13a/ 6hile the inter,al is still a Close > pen WRB e,en though it@s not 11a/5!o/pletion of the inter,al8=

WRB #ien $%P 5Close > pen8 upon !lose of the inter,al that appearsafter and abovethepattern signal=

8ore ABUS% currency @ http;


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WRB #ien $%P 5pen > pen8 upon !lose of the inter,al that appearsafter and belowthepattern signal=

WRB &ones that are still open 5not fille in b( the pri!e a!tion8 anbelowthe pattern signal=

8ore US%BC% currency @ http;


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:or eAa/ple of using the WRB to trigger stop aust/ent in a .hort position" preten (ou@re using the1 /in !hart inter,al an (ou enter a trae O 14a/= The pri!e a!tion e!lines an a WRB for/s O13a/ ,ia a ,olatilit( spi*e that@s ,riorto the neAt 1 /in inter,al !o/pleting O 11a/= ou 6oulthen aust (our initial stop


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signal strategies 5:JB" KC)" %FCTR" %P%R" .TR" JTR8 @http;


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our o6n pri,ate threa for (ou to get support in /erging WRB %nal(sis into (our !urrent trae/ethoolog(

d4ance nalysis !utorial Cha,ters # G 12- our pa(/ent of O23P6ill gi,e (ou a!!ess toifferent t(pes of WRB &ones that are suitable for ifferent t(pes of pri!e a!tions that 6ill allo6 (ou to

aapt /ore easil( 6hen /ar*et !onitions !hanges= In aition" (ouGll ha,e /ore !hoi!es of WRB&ones to eter/ine 6hi!h is !o/patible 6ith (our trae /etho or traing st(le=

%!!ess to the pri,ate WRB foru/Basi! Tutorial Chapters 1 3:JB %,an!e Trae .ignal .trateg( in !o/bo 6ith :JB Basi! Trae .ignal .trateg(

%,an!e Tutorial Chapters 4 - 12)ne(+Kire!tional Creeper )o,e/ent 5KC)8 %nal(sis an Trae .ignal .trateg(

)ne(+DDWRB%nal(sis real-ti/e !hat roo/Bonus Trae .ignal .trategies asso!iate 6ith tutorial !hapters 11 N 12 5,ia re7uest onl(8

%,an!e WRB %nal(sis Trae )anage/ent :ileour o6n pri,ate threa for (ou to get support in /erging WRB

%nal(sis into (our !urrent trae /ethoolog(

The ne6 %irectional Cree,er


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%e/onstration of 'no6lege 5a=*=a= K'8

:irst of all" (ou /ust learn =u""ort 5orum.

The %*'allo6s us to pro,ie better support to (ou an others if 6e see WRB %nal(sis proble/s in(our !harts or !o//entar( along 6ith sho6ing to us if (ou@re rea( to pro!ee to the neAt tutorial!hapter= In aition" other traers 6ill be able to learn an benefit fro/ (our K's= et" if (ou@reun!o/fortable in letting others rea (our /essages" 6e !an easil( !reate a pri,ate threa at the T..upport :oru/ for (ou to post 7uestions an K's in pri,ate so that other users !annot rea (our

/essages= In fa!t" if the T. .upport :oru/ see/s ina!ti,eit is not= There are a &e( usersacti4ely,osting questions and %*'s6ithin their o6n ,ri4ate threade,er( /onth= Therefore" if (ou6ant a ,ri4ate threadto use for (our free 3 a( support an


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RB %nal(sis Tutorials pates

The /ar*ets are fore,er !hanging an that i/plies 6e nee to aapt 5/a*e !hanges to the WRB%nal(sis8 6hene,er ne!essar( to /aintain the unerstaning of the pri!e a!tion=

Therefore" there 6ill al6a(s be upates to the WRB %nal(sis Tutorials ue to !hanging /ar*et!onitions" !orre!tions" or !larifi!ations(ou@ll fin it at the foru/ in the threa title U,dates and

nnounceents &or asic !utorial Cha,ters 1 $ 3 @

http;


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Cop(right an egal .tuff

!heStrateg(7ab=!o/ an )=%= Perr( 5a=*=a= 6rbtraer an Hihaba%shi8 WRB %nal(sis an Pri!e%!tion nl( strategies are prote!te uner !he %igital


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%lso" each trader has a unique co,y 4ia an identi&ier codee/bee 6ithin the strategies to/a*e it ,er( eas( for us to eter/ine 6hi!h !lient or none !lient has been sharing our fee-base /aterial6ithout our per/ission===in!luing bogus 5fa*e8 !opies= Therefore" 6eGll see* legal !ounseling forpossible legal a!tion against the /e/ber an an( foru/" blog" !hat roo/" 6ebsite et !etera that!ontinues to allo6 posting or file storage of our !op(right prote!te eu!ation /aterial after sear!h

engines ha,e re/o,e the urls 5lin*s8 fro/ their !a!he=WRB %nal(sis 56ie range bo( anal(sis or 6ie range bar anal(sis8 6as esigne in the earl( 190Gsb( )=%= Perr( ,ia /erging the stu( of !hanges in ,olatilit( an suppl(

wrb analysis tutorials 010613 v2.3 1

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