WRBAnalysisTutorials (Premium) Chapters1 3 (Free)

WRB Analysis Tutorials
August 15th
Sunday 2010
Version 2.2
“Understanding the Price Action”
Contact Us: questions@thestrategylab.com
Table of Contents
Copyright and Legal Stuff ---------------------------------------------> Page 2 - 3
Introduction ------------------------------------------------------------> Page 4 - 5
Referral Program (your referral code) -------------------------------> Page 6
WRB Analysis Updates ------------------------------------------------> Page 7
Demonstration of Knowledge (DOK) -------------------------> Pages 8
WRB Tutorial Chapter 1 ---------------------------------------------- > Pages 9 – 22
Introduction of WRB, WRB Hidden GAP, WRB Zone and S/R Levels
WRB Tutorial Chapter 2 ----------------------------------------------> Pages 23 – 39
Key Market Events as WRB Zones
WRB Tutorial Chapter 3 ----------------------------------------------> Pages 40 – 50
Trade Signals as WRB Zones
Profit Targets and First Stop Adjustment ----------------------------> Page 51 – 54
Info about Advance Tutorial Chapters 4 – 12 ------------------------> Page 55
Copyright and Legal Stuff (repeat) ------------------------------------> Page 56 – 57
Note: We are sure the WRB Analysis Tutorials will be helpful in your understanding of
the price action you’re trading prior to any trade signal source. However, you must
understand that the WRB Analysis Tutorials are for traders that have their own trade
signals or for traders that are fee-base clients of our trade signal strategies @
http://www.thestrategylab.com/TradingReports.htm
Therefore, the WRB Analysis Tutorials are not trade signals.
Also, we only provide support to traders that join our TSL Support Forum and we’ll setup
a private thread via request only if you want to keep your learning private so that other
members will not be able to read your questions and answers interaction with us.
Copyright and Legal Stuff
TheStrategyLab.com and M.A. Perry (a.k.a. wrbtrader and NihabaAshi) WRB Analysis
and Price Action Only strategies are protected under The Digital
Millennium Copyright Act.
Copyright © 2000 TheStrategyLab.com
Therefore, you yourself are not allowed to re-disseminate, re-distribute, repost any
aspects of our price action only strategies, wrb analysis or any other resources of ours to
file sharing, message boards, forums, blogs, websites, youtube, myspace, facebook,
twitter, news groups, emails, mail nor via any other social network communication source
without the permission of TheStrategyLab.com regardless if you're a fee-base client or
not.
In addition, you’re not allowed to make a copy and then share or sell that copy nor are
you allowed to share or sell the original while keeping a copy without the permission of
TheStrategyLab.com
Further, you're not allowed to provide education (free or fee-base) via revealing concepts
from our WRB Analysis Tutorials or Trade Signal Strategies regardless if you use the
exact same words or rephrase the concepts without the permission of
TheStrategyLab.com and members that ignore the copyright protection...the following
will occur:
You will be denied access to the fee-base resource and the refund policy is voided.
Agreements for your access to any new resources, bonus materials via special
promotions will be voided.
Forums, blogs, chat room or any other online location that continues to store the
message posts or files after we've contacted them about the copyright protection violation
will have the urls (links) to those messages removed from all major search engines cache
(e.g. Google DMCA policy) upon notification to the search engines about the copyright
protection violation.
Simply, you're not anonymous. TheStrategyLab.com and a few trusted clients are
members of most active trading forums around the world via different user names. We
often use their help and search engines to search for discussions involving concepts from
our trade methodology. Therefore, it's not worth risking losing access to resources of
TheStrategyLab.com because we often give members in good standing free access to
bonus education material.
Also, each trader has a unique copy via an identifier code embedded within the
strategies to make it very easy for us to determine which client or none client has been
sharing our fee-base material without our permission...including bogus (fake) copies.
Therefore, we'll seek legal counseling for possible legal action against the member and
any forum, blog, chat room, website et cetera that continues to allow posting or file
storage of our copyright protected education material after search engines have removed
the urls (links) from their cache.
WRB Analysis (wide range body analysis or wide range bar analysis) was designed in the
early 1980's by M.A. Perry via merging the study of changes in volatility and
supply/demand as a method for understanding the price action. This method has
objective rules unique to TheStrategyLab.com and we have traders documented since
the 1980's using our WRB Analysis although marketing of the trade methodology for
financial compensation didn't occur until year 2000.
In fact, WRB Analysis Tutorials is basically unchanged since origination except for some
small adaptation in a few of the tutorial chapters whenever market conditions change to
merit such a change. However, all changes are only via concepts of M.A. Perry from many
years of market/trading experience.
With that said, you’re allowed to mention to any trader that you use M.A. Perry WRB
Analysis or mention you’re using the trade signal strategies (AJCTR, APAOR, STR or
VTR) from TheStrategyLab. Yet, if the individual requests more details from you about
the concepts in the WRB Analysis Tutorials or trade signal strategies…send him/her to
the TSL Support Forum or tell the trader to contact me directly via email.
Also, if you want to be financially compensated or want free access to our fee-base
resources for sending traders to TheStrategyLab.com, contact me and request a referral
code so that you can give to other traders because we have a few clients making consistent
money from referrals via using their youtube, myspace, facebook or twitter social network
when talking to others.
http://www.thestrategylab.com/ReferralProgram.htm
Sincerely,
M.A. Perry and Associates
TheStrategyLab.com
http://www.thestrategylab.com/CopyrightProtected.htm
If a man does not keep pace with his companions, perhaps it is because he hears a
different drummer. Let him step to the music he hears, however measured or far
away.--Henry David Thoreau
Introduction
We highly recommend you print a copy of all the WRB Analysis
Tutorials, chart examples et cetera to prevent spending too much time
reviewing all the material on your computer along with preventing
access delays in the future if the file is unavailable for downloading at the
website or forum due to maintenance.
Also, it’s important you understand that the in-depth information is not
designed to confuse you. Instead, it’s designed to remove as much
subjectivity as possible along with reducing confusing questions &
answers interactions at the forum.
The tutorials are designed to help give you that critical understanding of the price action
called the context. It is this context that will improve aspects of your trade strategies (e.g.
entry signal, stop/loss placement, trailing stops, profit targets or exit signals) and
increasing your ability to adapt profitably in market environments that’s always changing.
How Do You Determine The Merits Of WRB Analysis?
Compare the results of any aspect of your trade strategies (entry signals, stop/loss
protection, trailing stops, profit targets or exit signals) occurring within WRB Zones
versus the results of your trade strategies without WRB Zones.
Review my own performance record that's stored at the TSL Support Forum @
http://www.thestrategylab.com/tsl/forum/viewforum.php?f=10
Review educational message posts by one of our clients (known as HiddenGap) that has
merged WRB Analysis into his trade signal methods @
http://www.forexfactory.com/member.php?u=112593
Review testimonials (accolades) that are written by clients @
http://www.thestrategylab.com/Accolades.htm
However, if you don’t have your own trade strategies, you’ll need WRB Analysis Tutorial
Chapters 1, 2 and 3 study guides to design your own trade strategies to prevent making
trade decisions based upon your feelings or inexperience. Therefore, you’re going to need
to select any general trading concept you have an interest in for merger with WRB
Analysis. This decision can only be made by you and common trading concepts (e.g.
breakouts, fading breakouts, double tops/bottoms, Japanese Candlesticks, gaps, range,
trend, intermarket analysis, VSA, traditional chart patterns et cetera) you’re interested in
and merging it with WRB Analysis.
Yet, regardless if you have your own trade strategies or need our help as you begin the
process of designing your own methods…you will need to use the free 30 day support
to fully exploit the WRB Analysis Tutorial Chapters study guides that’s offered at the TSL
Support Forum. The free support begins whenever you post your first question at the
forum. Next, you’ll be able to determine the merits of WRB Analysis to determine if you
should purchase the advance tutorial chapters 4 – 12.
WRB ----> WRB Hidden GAP ----> WRB Zone
Basic Tutorial Chapter 1 - Discussion involves learning to identify a WRB and then
learning that some WRBs (not all) will get transformed (converted) into a WRB Hidden
GAP.
Basic Tutorial Chapter 2 - Discussion involves what type of price action via key
market events that will transform (convert) a WRB Hidden GAP into a WRB Zone along
with learning that a WRB Zone itself has its own s/r levels.
Basic Tutorial Chapter 3 – Discussion about your own trade methods (trade signals)
to see if they qualify as a WRB Zone via the price action that occurs after your trade
signal via a pretend trade method example. However, this chapter is applicable to the
AJCTR, APAOR, STR and VTR trade signal strategies.
Therefore, the key aspects of the WRB Analysis Tutorials are the WRB, WRB Hidden GAP
and WRB Zone.
Also, for us to determine whom has real interested in learning/applying WRB Analysis
Tutorials beyond tutorial chapter 3…the table of contents for the advance tutorial
chapters 4 – 12 is only shared via request only.
Referral Program
You will occasionally be asked by other traders what method you’re using. When such
occurs, we highly recommend you join our referral program via requesting a referral
code so that we can send you another copy of the WRB Analysis that will have the
below payment information embedded with your referral code so that you can be
financially compensated if someone makes payment. We’ll then financially compensate
you with 20% of their payment via PayPal or wire transfer (your choice). In fact, if you
have a blog, website, twitter, facebook or myspace account…you have our permission to
discuss information from this document and share it with anyone that specifically request
further information about WRB Analysis. Yet, do not spam our methods.
However, if you have access to any of the advance tutorial chapters 4 – 12 or trade signal
strategies (VTR, STR, APAOR, AJCTR), you’re not allowed to share them.
Further, only recommend the WRB Analysis Tutorials if you’re satisfied with its
educational value and if it improves your profits or reduces your losses in comparison to
your trading results prior to you purchasing the WRB Analysis Tutorials. You can find out
more information about the income you can generate via referrals et cetera @
In addition, as mentioned in the introduction, the table of contents for the advance
tutorial chapters 4 – 12 is only shared via request only for us to determine who has an
interest in learning/applying WRB Analysis beyond tutorial chapter 3.
Pay $450 for all the advance WRB Analysis Tutorial chapters 4 - 12 at the same time
for a savings of $225 because you'll be paying $50 per tutorial chapter instead of $75 per
tutorial chapter.
Wire transfer is available or you can contact us for other payment options. Also, if you
cannot see the above image payment information…click here.
WRB Analysis Tutorials Updates
The markets are forever changing and that implies we need to adapt (make changes to the
WRB Analysis) whenever necessary to maintain the understanding of the price action.
However, these changes often will only consist of adding new information to continue
exploiting a changed market environment.
Further, if there are any WRB Analysis Tutorial updates due to changing market
conditions, corrections, or clarifications…you’ll find it in the questions & answers
thread at the forum @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=61
Therefore, it’s your responsibility to review the questions & answers thread at least
once per month to be up to date with any new information or clarifications to the WRB
Analysis Tutorial Chapters 1 – 3 study guide.
Also, you’ll notice that the charts in this file that have been re-sized to fit in this word
document. However, in such cases, I’ve included a direct link below the charts to the
charts located at the forum that have not been re-sized for you to download and print.
Demonstration of Knowledge (a.k.a. DOK)
First of all, you must learn/apply basic tutorial chapters 1 - 3 for a minimum of 10
trading days prior to attempting to merge it with your trade strategies. It’s after these
initial 10 days that you can began posting a “demonstration of knowledge” (DOK) to
show us that you’ve learned and understand the tutorial chapters. Also, your posted DOK
will extend your free 30 day support into another free 30 day support…allowing you to
better determine the merits of the WRB Analysis Tutorials.
Note: Free 30 day support is only allowed to be extended one time at the TSL Support
Forum.
The DOK allows us to provide better support to you and others if we see WRB Analysis
problems in your charts or commentary along with showing to us if you’re ready to
proceed to the next tutorial chapter.
In addition, other traders will be able to learn and benefit from your DOKs. In contrast, if
you become a fee-base client via paying for the advance tutorial chapters 4 – 12, fee-
base clients that post a DOK for each tutorial chapter 1 – 12 will be eligible for access to
bonus trade strategies associated with advance tutorial chapters 11 and 12 as a sneak
preview into our own trade signal strategies that’s merged with WRB Analysis. Further,
posted DOKs for all 12 tutorial chapters will qualify you for free access to bonus
material not mentioned at the website or forums as our way of saying thank you for
keeping the fee-base forums an active learning experience.
Note: Fee-base clients WRB Analysis Tutorial forum is not located at the TSL Support
Forum because the TSL Support Forum is for traders that have not purchased any fee-
base education material.
Further, fee-base clients that post a DOK to the any advance tutorial chapters 4 – 12
will be given indefinite support beyond the guaranteed 30 days of support. However,
the one month guaranteed support will end upon expiration of the 30 days if the trader
refuses to post a DOK. In contrast, fee-base clients will always have support (help) for the
basic tutorial chapters 1 – 3 regardless if they post a DOK or not.
With that said, we do not take questions about WRB Analysis Tutorials via
email to encourage you to use the discussion forum and using the forum helps to ensure
that all WRB Analysis Tutorial members are learning from each other besides from
TheStrategyLab.com
More information via examples of a D.O.K @
http://www.thestrategylab.com/tsl/forum/viewforum.php?f=61
WRB Analysis Tutorial Chapter 1
Introduction and explanation of WRB Hidden GAP
Understanding the price action prior to the appearance of any pattern signal or profit
target is critical to trading profitably and it will explain to you why the market did what it
did. Also, it will allow you to adapt your trading plan to the markets whenever the
markets change (a change that happens many times each year) so that you can avoid
drawdown periods or worst.
Simply, understanding the markets is an edge that can be consistently exploited along
with empowering you to know when key swing points or strong continuation price actions
are most likely to occur.
What exactly is WRB Analysis
WRB Analysis is a method that helps traders to understand and exploit changes in
volatility and supply/demand.
It can be applied to time based candlestick or bar charts, volume based charts or tick
based charts although the chart examples in the WRB Analysis Tutorials are via time
based candlestick charts.
Also, WRB Analysis identifies changes in supply/demand that's occurring between buyers
and sellers along with providing a map for exploiting the price action from swing point to
swing point regardless if you're a day trader, swing trader or position trader.
The word WRB means wide range body and there are different types of WRBs based
upon volatility analysis, gap analysis or support/resistance analysis.
A wide range body is an interval that has a body (difference between Open and Close)
with a price area larger than the bodies of each of the prior three intervals (each
interval individually compared to the WRB).
WRB (its body) > Body of interval 1
You can use any number greater than the above three intervals as long as it’s not less than
three due to the behavior of volatility analysis because it’s too difficult to analyze the
volatility via less than two intervals regardless if the intervals are based upon time,
volume or tick.
Further, don't mix the definitions of a Wide Range Body with a Wide Range Bar even
though both are called WRBs.
The Wide Range Bar is a term associated with Bar charts and represents the price area
between the High and Low.
In contrast, Wide Range Body is a term associated with Candlestick charts and
represents the price area between the Close and Open.
Therefore, base upon the above definitions, I obviously have a preference for candlestick
charts even though WRB Analysis can be performed on bar charts, volume based chart or
tick charts.
In fact, about 25% of our clients use bar charts instead of candlestick charts.
WRB Analysis in combo with your Strategy
WRB Analysis is primarily designed to improve the performance of your own custom
trade signal strategies as you’ll learn in tutorial chapter 3. However, if you’re interested in
our trade signal strategies, WRB Analysis has been merged into +17 strategies via the
VTR, STR, APAOR, AJCTR to improve their performance along with giving our strategies
an adaptable element whenever market conditions change. Yet, you must understand that
many of our clients (not all) are profitable because WRB Analysis is just one piece of the
puzzle in their trading plan. However, it’s an important piece of the puzzle that helps
other pieces of the trade strategy to work better together.
WRB Analysis ---> Trade Strategy ---> Trading Plan
Other important pieces of the puzzle (trading plan) are market experience, discipline,
money management, proper capitalization, position size management, stress
management, proper broker platform, proper trade workstation, proper at home/office
trade environment, team collaboration et cetera…arguably more important than the trade
strategy itself. Thus, WRB Analysis cannot compensate nor fix your trading plan if any of
the important pieces are missing or inadequate.
With that said, WRB Analysis is an understanding of the price action and that makes it
much more important than just entry signals. It can be used just to get a better
understanding of what really is leading your trading instrument for a particular trading
day, used only as profit targets for those that have trouble staying with their winners or
used to improve the trade management (after entry) of many different types of methods
or trading styles (day trader, swing trader or position trader).
Just as important, WRB Analysis can easily be integrated into your own methods to
enhance the performance of your strategies if your methods are based upon any of the
following types of strategies:
Breakout Strategy
Fading Breakout Strategy
Divergence Strategy
Support/Resistance Strategy
Double Bottom/Double Top Strategy
GAP Strategy (Regular Session Gaps and Globex All Session Gaps)
Trend Strategy
Range Strategy
Profit Target Strategy
Volume Spread Analysis (TheStrategyLab.com has a few clients using VSA even
though we ourselves do not use this methodology)
Intermarket Analysis
Market Seasonal Tendencies (Cycles) Analysis
Volatility Analysis and it replaces the need for volume analysis
Japanese Candlestick Patterns (time and volume based candlestick charts)
Traditional Chart Patterns (ex. triangles, wedges, head and shoulders, flags, pennants
and rectangle price action)
Technical Indicators (ex. rsi, cci, macd, stochastics, moving averages, average true
range, obv and many others)
The above are mentioned by clients of TheStrategyLab.com that uses WRB Analysis to
improve their own strategies or that exclusively uses our strategies integrated with a
few of the above.
Trading Instruments suitable for WRB Analysis
The nature of WRB Analysis makes it suitable for any trading instrument.
However, we do not follow every type of market in the world. Therefore, although WRB
Analysis is applicable to any market that produces WRBs and WRB Hidden GAPs…we
can only provide proper support that includes real-time help to the listed markets below
due to the fact that we ourselves currently trade, have traded or monitor closely the
following markets on a daily basis for our intermarket analysis:
CME Emini Futures EMD, ES and NQ
ICE Emini TF Futures (formerly CME ER2)
CBOT mini-sized Dow Futures YM
Eurex Index Derivatives (futures) DAX and DJ Euro Stoxx50
Eurex Fixed Income Derivatives (futures) BUND, BOBL and Schatz
Euronext Futures FTSE-100 and CAC-40
CME Futures EuroFX 6E and EC
Treasury Futures T-Notes ZT, ZN, ZF and T-Bonds ZB
Forex Currencies GbpUsd, EurUsd, EurYen and UsdCdn
Exchange Traded Funds BGU, FAS, FAZ, TNA, DIA, IWM, QQQQ, SPY, OIH, XLE,
GLD and VXX
NYMEX Energy Futures Light Crude Oil CL, e-miNY QM and Natural Gas NG
COMEX Metal Futures Gold GC, mini-Gold YG, Copper HG and Silver SI
Hang Seng Index Futures HSI and mini-Hang Seng MHI
Note: The above list may be outdated. Therefore, the current list of applicable trading
instruments is located @ http://www.thestrategylab.com/TradingInstruments.htm
However, if you’re applying WRB Analysis to a market not listed above, you must
understand that one key aspect of our support is that we do such in real-time if asked
instead of via hindsight analysis. Thus, if we don’t have access to any markets not listed
above or don’t follow such markets in real-time…it’s very difficult or impossible to
provide proper support to help you understand the price action of your trading
instrument as you merge WRB Analysis with your trade strategies or with our trade
strategies (VTR, STR, APAOR or AJCTR).
Wide Range Body (WRB)
A wide range body (WRB) interval or expansion body in reference to the

TheStrategyLab.com occurs when the body of the interval is greater (larger from Open to
Close) than the bodies of each of the most recent prior three intervals (each interval
individually compared to the WRB).
Therefore, we are not measuring the extremes (difference between High and Low).
Instead, we are measuring the price area between the Open and the Close.
Dark WRB Candlestick itself has a body that's Open > Close.
White WRB Candlestick itself has a body that's Close > Open.
However, you can modify the above three interval rule into 5, 7, 10 or whatever you feel is
more appropriate.
Yet, we do not recommend using anything less than 3 intervals.
WRBs are a key aspect of our custom type of support/resistance zones although we prefer
to use the phrase key change in supply/demand.
WRBs allow a trader to exploit trends if/when WRBs appear after they enter a trade or
prior to the entry. Further, WRBs are more suitable than fixed profit targets in exploiting
shifts in supply and demand.
Definition of Mid-Point of a WRB
(Open + Close)/2
WRB Hidden GAP (unfilled)
First of all, the term Hidden is a poor description and may confuse some traders.
Hidden GAP doesn’t imply there’s no price action between the Open and Close that
represents the body of a special type of WRB interval. Instead, it implies the price action
within the WRB body is not noticed (as if hidden) by most traders as a key change in
supply/demand and the visualization of this change in supply/demand is represented by
the volatility of the WRB Body that represents a key market participants that are either
ignore or forgotten by most traders except for other key market participants.
With that said, the Hidden GAP is determined by the price action of the single interval
before and the price action of the single interval after the WRB. These Hidden GAPs
(unfilled) can be used as profit targets when these types of hidden gaps occurs prior to
our trade entries.
In addition, hidden gaps represent an early warning to be looking for valid trade signals
(e.g. reversal, continuation) or profit targets that will soon appear.
To be specific, if you take a position above or below a WRB Hidden GAP...more often than
not the Hidden GAP will behave like a magnet and attract price action towards it even
though the price action may not fill in the GAP. Also, Hidden GAPs represents the most
current info about supply and demand whereas in comparison most traders use pivot
points via yesterday’s info to get an idea about supply and demand (s/r zone) for today.
Hidden GAPs tells us we are no longer in chop and/or breaking out of a consolidation
price action unless they are quickly retraced.
Therefore, when there are no Hidden GAPS...the price action is most likely consolidating
and/or in a low volatility trading range.
Hidden GAPs tells us that key market participants are taking positions and their action
has caused a change in supply/demand. However, a change in supply/demand doesn’t
only imply there’s a change from supply to demand (reversal) or change from demand to
supply (reversal). It can also imply there’s a change from supply to more supply
(continuation) or change from demand to more demand (continuation).
Note: The upper or lower shadows of the first interval before and after the WRB will
determine the size of the Hidden GAP area for those WRBs that qualify as a WRB Hidden
GAP.
The two image examples below have two charts within each image. The chart on the left
shows a WRB Hidden GAP whereas the chart on the right has the exact same price action
with the only difference is that the WRB Hidden GAP has been removed (erased) to reveal
a Hidden GAP.
http://www.thestrategylab.com/tsl/forum/download/file.php?id=638
In contrast to the prior images…the two images below represents Normal GAPs
involving the empty area between yesterday’s close and the open price of today’s price
action. Simply, we want you to visualize and understand that a WRB Hidden GAP has
the exact same characteristics as a Normal GAP when the normal gap is larger than each
of the prior three intervals in yesterday’s trading session.
The prior charts of WRB Hidden GAPs and Normal GAPs are to show you what happens
when the WRB Hidden GAP interval is removed (erased)…it reveals a change in volatility
and supply/demand. Thus, change can only be seen if you pretend the interval before
the WRB is from yesterday and the interval after the WRB is today's open. Therefore, it’s
the intervals before and after the WRB that determines if the WRB is a WRB Hidden
GAP. Thus, most WRBs will not qualify as a WRB Hidden GAP.
Simply, if the shadows before and after are overlapping each other, there's no Hidden
GAP that represents a change in volatility or supply/demand.
Key Change in Supply/Demand Price Area: Hidden GAP versus Body
The Hidden GAP area as shown in the above charts represents the price action between
the single interval before the WRB and the price action of the single interval after the
WRB. In contrast, the body of the WRB represents the price action between the Open and
Close of the interval.
Simply, the Hidden GAP is dependent upon the price action of the interval before and
after the WRB whereas the Body is dependent upon the WRB itself.
However, it's the Hidden GAP price area that identifies using the Body as the key
change in supply/demand price area along with the fact that the Hidden GAP price area is
smaller than the Body price area.
Thus, the Hidden GAP is like a visual alert that this particular interval and its price action
could result (if confirmed later) as a key change in supply/demand that can be used as a
WRB Zone if it qualifies via the price action definitions discussed in the basic tutorial
chapters 2 -3 or advance tutorial chapters 4 - 12.
Further, you will see different charts in the tutorials that show the Hidden GAP area as
the key change in supply/demand or the Body of the WRB as the key change in
supply/demand. Therefore, you can use the Hidden GAP area or the Body as the WRB
Zone. In fact, some of our clients prefer the Body as the WRB Zone while most clients
prefer the Hidden GAP area as the WRB Zone.
Simply, both types of charts are correct unless noted in a specific tutorial chapter to use
one instead of the other (e.g. Chapter 4 states to use the Body only).
Dynamic S/R Area of the WRB Zone
At first glance it would seem that a WRB Zone above current price is a resistance zone
and a WRB Zone below current price is a support zone. However, the dynamics of a
WRB Zone will change dramatically when price enters a WRB Zone.
Price action inside a WRB Zone will change (transform) the dynamics of the zone via
producing a resistance level and a support level within the zone until the price action exits
the zone.
Chart Info – EuroFX 6E price action is below the key market event WRB Zone. Thus, the
zone has the characteristic of a resistance zone.
http://www.thestrategylab.com/vtr/forum/download/file.php?id=981
Chart Info – EuroFX 6E has now transformed the WRB Zone into S/R Levels.
http://www.thestrategylab.com/vtr/forum/download/file.php?id=982
This transformation of a WRB Zone into S/R Levels is very important in enhancing your
awareness of changes in supply/demand and designing your own trade strategies via the
foundation given to you via the WRB Analysis Tutorials.
In addition, you must remember that a WRB Zone does not imply that the price action
will reverse when price enters the zone. In contrast, when price enters a WRB Zone…you
should be looking for continuation signals and reversal signals via whatever trade
strategies.
Hindsight Charts versus Real Trading Conditions identification of WRB
Hidden GAPs and WRB Zones
There are many hindsight charts posted at the WRB Analysis Tutorials Question &
Answer threads at the discussion forum.
However, just because you can easily identify WRB Zones on hindsight charts doesn't
imply it’s just as easy when trading with real money or simulator in real-time market
conditions.
Therefore, here's a simple trick to help you traverse from hindsight chart expert to real
trading application.
First of all, you must demonstrate your knowledge (DOK) in the Questions &
Answers thread via the detailed instructions at the TSL Support Forum in the WRB
Analysis Tutorial section.
Next, involving the price action itself in real-time trading conditions...
Every time you see a single interval price spike that has a wide range (volatility
expansion) in comparison to prior intervals, there's a good chance the interval will
complete as a WRB. If a WRB is confirmed, continue monitoring it to see if the interval
after the WRB is able to confirm (upon interval completion) the WRB as a WRB Hidden
GAP. In fact, it’s easy to code a WRB Hidden GAP in any charting software that has
coding capabilities to make it easier to see WRB Hidden GAPs form in real-time.
In addition, you want to monitor any contracting intervals (three minimum) that may
develop after a confirmed WRB Hidden GAP because contracting intervals will often set
up another expansion interval (up or down) that upon completion may qualify the
expansion interval as another WRB Hidden GAP.
In addition, it’s highly recommend you use a data program that has replay capabilities
or use a screen recorder to record your charts in real trading conditions so that you
can use your replay/recording archives to develop a better intuition about the
development of WRB Hidden GAPs and WRB Zones.
Simply, develop a habit of monitoring real time price action along with having archives of
the real time price action via replay or screen recording because hindsight charts alone is
a poor way to learn the price action of any trading method regardless if it’s yours or ours.
Key Market Events as WRB S/R Zones
You must study the WRB Analysis Tutorial Chapters 1 - 3 in real-time market
conditions prior to learning the strategies from either the AJCTR, APAOR, STR, VTR or
learning strategies from someone else outside of TheStrategyLab.com including your own
custom methods you may be designing.
First of all, tutorial Chapter 1 provided an in-depth explanation of a WRB (wide range
body) and WRB Hidden GAP. You will need this information to understand the price
action involved in the advance tutorial chapters 2 - 12.
Therefore, it's your responsibility to refer back to prior chapters if you don't understand
something involving the WRB because it will be redundant for me to repeat that exact
same info in each of the higher level chapters. In addition, Chapter 2 involves learning
and applying WRB Zones generated as a result of a key market event. In contrast,
tutorial chapters 3 – 12 do not involve key market events to help determine WRB Zones.
With that said, it's your choice on which type of WRB Zone (each chapter 2 – 12 talks
about different zones) to use based upon your personal trading style and available
resources. For example, you may prefer tutorial chapter 2 because you have a strong
understanding of price reaction to economic reports or background in economics. In
contrast, another client may prefer tutorial chapter 4 involving volatility breakouts
because they like to take a trade with the direction of the breakout or fade breakout price
actions along with using the WRB Zones of breakouts to setup their own trade signals
that occurs later in the price action.
However, market conditions are always changing and a tutorial chapter WRB Zone that
appears often may not be so important after the next key change in market conditions.
This reason alone is why you should master more than one tutorial chapter amongst the
advance tutorial chapters 4 – 12 to minimize being confused about the price action
whenever market conditions change.
Therefore, only you (not us) can determine which type of WRB Zones are suitable for
your trading instrument and your trading style via putting in the screen time by studying
the price action via real-time data (primary) and hindsight charts (secondary).
Getting back to tutorial chapter 2, we are concentrating on key market events in this
tutorial chapter because key changes in supply/demand will occur at/after these events
due to trading by the big boys represented by professionals that trade large size
positions, traders on the exchange floor and institutional traders.
More importantly, the big boys easily remember these key price zones when prices return
to the price area where there was a key change in supply/demand.
Requirements for Understanding the Price Action: The key is that if you
don’t understand the price action…your valid trade signals or pattern signals will
become more difficult to manage or less reliable when they occur in price action
that do not represent a key change in supply/demand. You’ll also be less likely to
adapt your trade strategies when such is needed and less likely to be able to minimize
drawdown periods.
However, you can easily test the merits of WRB Analysis via comparing your trade results
(manual backtest, simulator or real money trading) when your entry or exit signals occur
within a WRB Zone versus your results without a WRB Zone. Simply, has your trading
improved after learning the WRB Analysis Tutorials regardless if you’re using your own
trade strategies or the trade strategies of TheStrategyLab.com (AJCTR, APAOR, STR or
VTR).
With that said, as stated earlier, key market participants (professional and retail traders)
will often remember these key price areas because that's where a prior reversal or strong
continuation price action had occurred and these key market participants will often trade
again (opening new positions, exiting current positions or adding to open positions) in
these revisited price areas.
The price area that key market participants remember is the first WRB Hidden GAP
at/after a key market event. Therefore, WRB Hidden GAPs that occur after the first WRB
Hidden GAP and in the same direction are simply a continuation of the change in
supply/demand (traders chasing the price action or jumping on the band wagon).
Here are a few key concepts to remember about Chapter 2:
There must be a key market event (Chapter 2 only).
There must be a first WRB Hidden GAP at/after the key market event.
There must be a valid swing point or strong continuation price action as described in
the price action definition that involves the first WRB Hidden GAP or your own pattern
signals to validate using it as a WRB Zone (FED events contains exceptions discussed
below).
Know the life span (how long you can use it) of the WRB Zone generated by the first
WRB Hidden GAP associated with a key market event.
Key Market Events
First of all, you must determine which of the below types of key market events will
be your favorite based upon your personal background, trading style and market
resources available to you.
That all by itself will allow you to follow WRB Zones that are important to you for
whatever reasons while ignoring all the other types of key market event WRB Zones
presented below along with preventing you from attempting to monitor too much
information in real-time trading conditions. For example, if you don't have access to real-
time market news (breaking news) source, WRB Zones associated with breaking news
should not be important to you nor monitored on your charts. Another example is to
pretend you have a strong background in Housing information, Economic key market
events called Housing Starts, Pending Home Sales Index, New Home Sales, Construction
Spending and Existing Home Sales reports will most likely be your most important source
for WRB Zones. In contrast, there's a profitable client that has a strong preference for
Energy related event WRB Zones that includes breaking energy news events while
ignoring all other types of key market event WRB Zones.
We cannot tell you which type of WRB Zones to follow and which ones to ignore
because I don't know your personal background, trading style nor do I know what market
resources you have available. You must decide on your own which type of WRB
Zones to follow more closely than others...it's your responsibility.
With that said, there are three types of key market events that generate WRB Zones
and you should determine on your own which are more important than the others based
upon your own personal preferences and resources that are available:
FED related key market event - The first WRB Hidden GAP that appears at/after the
key market event will be your designated WRB Zone. However, only if the first WRB
Hidden GAP is verified by the swing point or strong continuation price action
definitions.
Note: Read below the info involving the color coded * and dots because the FED
events are not required to produce a swing point nor strong continuation price action to
qualify WRB Zone.
Economic report key market event - The first WRB Hidden GAP that appears at/after
the key market event will be your designated WRB Zone. However, only if the first WRB
definitions.
Breaking news key market event - The first WRB Hidden GAP that appears at/after
the key market event will be your designated WRB Zone. However, only if the first WRB
definitions.
FED related Key Market Events
FED related key market events are the main reasons why trends occurs and any trader
wondering when the next trend will develop should be a trader that pays attention to
these FED related key market events WRB Zones.
As mentioned before, we are only interested in the first WRB Hidden GAP at/after the
key market event even if the WRB Hidden GAP occurs a long time after the FED related
key market event.
For example, if there's a FED speech at 1115am est and the first WRB Hidden GAP
appears at 1128am est, the WRB Hidden GAP at 1128am est will be your designated WRB
Zone.
The following key market events will generate WRB Zones and these types of zones will
remain a WRB Zone for validating trade signals for trading until the next FED related key
market event regardless if the price action is filled or unfilled.
FOMC Announcement
FOMC Minutes
Philadelphia FED Survey
Beige Book
Richmond Fed Index
FED Chairman Bernanke speeches
*FED related speeches by board members and presidents
*Former FED Chairman Greenspan speeches
ECB Announcement that's Europe's version of the U.S. FOMC Announcement
BOE Announcement that's England's version of the U.S. FOMC Announcement
BOC Announcement that's Canada's version of the U.S. FOMC Announcement
FED events with the above ( *) implies that they need to produce a swing point or
strong continuation price action to qualify for use as a WRB Zone whereas in contrast the
other ( ) FED events are always considered as WRB Zones until the next FED related
event even if they don't produce a swing point nor strong continuation price action.
We recommend the following calendar resources so that you'll be aware of when these key
market events will occur which also means that you'll know when WRB Zones will
develop.
There are other resources you can use a search engine line Google to find international
economic calendars that keeps track of key market events.
http://fidweek.econoday.com
http://www.forexfactory.com/calendar.php
http://www.federalreserve.gov/calendar.htm
http://www.ecb.int
Once again, WRB Zones generated via the above key market events will remain a key
WRB Zone for the purpose of validating trade signals for trading until the next key
market event from the above list regardless if the price action is filled or not filled by the
price action that follows.
Note: We use the phrase validating trade signals for trading to imply that a trade signal
is not tradable unless it occurs within a WRB Zone.
Economic Key Market Events
This WRB Zone will be represented by the first WRB Hidden GAP at/after the key
market. However, only if the first WRB Hidden GAP is verified by the swing point or
strong continuation price action definitions.
For example, if there's an economic report event at 1030am est and the first WRB
Hidden GAP appears at/after 1035am est, the WRB Hidden GAP at/after 1035am est
will be your designated WRB Zone. Further, if there are multiple key market events in the
same trading day, you will have multiple WRB Zones.
These key market events are the Treasury Budgets, Consumer Confidence reports, Home
Sales reports, EIA Energy reports et cetera...anything that's a regular schedule economic
event not related to the Federal Reserve.
Note: When a key economic event is postponed to the next trading day due to a
holiday...the market will sometimes still produce a WRB Hidden GAP as if the event had
not been postponed because many traders forgot it has been postponed. For example, if
there's a Monday holiday (markets closed)...the Wednesday 1030am est EIA Petroleum
Status Report is postponed until Thursday at 1030am est. Yet, sometimes the Wednesday
1030am est price action will still produce a WRB Zone.
Breaking News Key Market Events
To exploit breaking news key market events you obviously will need to have access to
continuous real-time news source via online or television that provide news 24hrs each
day of news around the world.
These worldwide news events behave like FED events or economic report event.
Therefore, you'll be only interested in the first WRB Hidden GAP that's generated
at/after the breaking news key market event. However, only if the first WRB Hidden
GAP is verified by the swing point or strong continuation price action definitions.
Note: Breaking news event that later gets revised or reported later as false (e.g. an
explosion in NYC was really just a gas leak explosion and not a terrorist activity)...
Something else to remember, the market will often retrace the price action back to
the first WRB Hidden GAP involving breaking news key market events if the news is
found to be false, rumored or follow-up with another news event that makes the prior
news event seem like it's been resolved.
First WRB Hidden GAPs
You'll only be interested in the first WRB Hidden GAP that's produced in the price
action at/after a key market event to provide the WRB Zone.
In addition, if the first WRB Hidden GAP does not qualify as a WRB Zone...do not
traverse (search) the price action for another WRB Hidden GAP that occurs after the
first WRB Hidden GAP for qualifying as a WRB Zone.
Simply, if the first WRB Hidden GAP doesn't qualify as a WRB Zone...you must wait for
the next key market event to start over again to see if the price action associated with the
new key market event will produce a first WRB Hidden GAP that can qualify as a WRB
Zone.
Further, these WRB Zone generated by the WRB Hidden GAP are to be used to validate
any pattern signal or intuition trades that occur later in the price action that follows.
However, read carefully below because the first WRB Hidden GAP will only be valid as a
WRB Zone if it is among the price action that produced a swing point or strong
continuation price action as defined in the below definitions (FED events have a few
exceptions as discussed above).
Also, tutorial chapter 1 is critical to you understanding the words WRB or WRB Hidden
GAP...please review tutorial chapter 1 if you don't understand those words here in tutorial
chapter 2.
Swing Point and Strong Continuation Price Action Definitions
First of all, a first WRB Hidden GAP is required as mentioned above to occur
within the price actions definitions discussed below and as shown (annotated) in the
generic charts along with real chart examples.
In addition, although we don't specifically mention the words first WRB Hidden GAP in
any of the below price action definitions, it still is one of the requirements to be amongst
the price action that occurs at/after the key market event as explained above.
Also, if you prefer to use your own interpretations (analysis) of swing points or strong
continuation price actions after reading ours...
Please ignore the below price action descriptions because the below definitions are for
those traders that do not know how to recognize a swing point price action nor a strong
continuation price actions.
Swing Point Definitions (two different types)
#1) Defined as a change of price direction (swing point) that involves a key market event
that is then followed by a price action that fills in the price action of any prior WRB
Hidden GAP that was unfilled along with producing change of price direction that
contains a minimum of two consecutive (back to back) same color intervals prior to the
next swing point.
This GAP fill price action must occur prior to the formation of the next swing point.
Bullish Swing Point - The key market event must be below the low price of the prior
WRB Hidden GAP.
Bearish Swing Point - The key market event must be above the high price of the prior
WRB Hidden GAP.
Note: The prior WRB Hidden GAP (unfilled) must occur before the key market event.
#2) Defined as a change of price direction that produces three consecutive same color
intervals with higher closes (rising prices) or lower closes (declining prices) in which
there is a WRB Hidden GAP interval among the three consecutive same color intervals
prior to the next swing point.
Simply, the first interval that appeared before the next two intervals, that first interval
must be involved with the price action where the change of price direction (swing point)
occurred and not be involved after a swing point as a continuation price action.
Bullish Swing Point - Price action was declining and then reversed direction (swing point
involving a key market event) and then price rises back upwards to produce three
consecutive same color white lines with higher closes.
Bearish Swing Point - Price action was rising and then reversed direction (swing point
involving a key market event) and then price declined back downwards to produced three
consecutive same color dark lines with lower closes.
Note: My use of the words dark lines and white lines implies that the Dark Line
interval = Open > Close while the White Line interval = Close > Open for those
that uses a different color scheme on their charts.
Also, it's common to see the price action correlate with more than one of the above swing
point price action definitions. However, that does not imply that all the swing point price
action definitions must be qualified because you only need one of the above
definitions to qualify a first WRB Hidden GAP as a WRB Zone.
Strong Continuation Price Action Definition (two different types)
#1) Defined as producing two or more same color WRB Hidden GAPs (they don't need to
occur consecutive as in back to back) in which one of the WRB Hidden GAPs is a breakout
interval above the most recent reaction high (bullish continuation) or below the most
recent reaction low (bearish continuation) price action before the next swing point.
Only one of the WRB Hidden GAPs is allowed to occur before the key market event.
#2) Defined as a price action that produces a v2 WRB (expanding volatility) followed by a
minimum of three small range intervals (contracting volatility) that's then followed by a
v1 WRB (expanding volatility) in the same direction in which one of the WRB's must be a
WRB Hidden GAP.
In addition, the contracting volatility between v2 and v1, does not retrace (fill in the
range) of the v2 WRB and its prior three intervals.
Bearish Continuation - Price action was declining (it contained a minimum of two dark
lines with lower closes) before and above the close of the v2 Dark WRB then followed by
contracting volatility that traverses into a v1 Dark WRB (volatility spike) in which the
price action continues declining (it contained a minimum of two dark lines with lower
closes) after and below the close of the v1 Dark WRB prior to the next swing point.
Bullish Continuation - Price action was rising (it contained a minimum of two white lines
with higher closes) before and below the close of the v2 White WRB then followed by
contracting volatility that traverses into a v1 White WRB (volatility spike) in which the
price action continues rising (it contained a minimum of two white lines with higher
closes) after and above the close of the v1 White WRB prior to the next swing point.
The v1 WRB must occur at/after the key market event. However, if using the v2 WRB
as the WRB Zone…it must occur at/after the key market event.
Note: v2 WRB and v1 WRB are the same color intervals.

Also, it's common to see the price action correlate with more than one of the above strong
continuation price action definitions. However, that does not imply that all the strong
continuation price action definitions must be qualified because you only need one of the
above definitions to qualify a first WRB Hidden GAP as a WRB Zone.
Once again, if you don't like the above definitions or they seem too confusing...use your
own definitions that are more suitable for your trading style.
However, when using your own definitions, you must consistently use it for analytical and
documentation purposes if you should need to do statistical analysis on your past trading.
Simply, remove as much subjectivity as you can from your own definition of a swing point
and strong continuation price action.
Life Span of a Key Market Event WRB Zone
The WRB Zones that can used to validate any aspect of a trade strategy are the ones that
the price action has not traversed through the entire zone…these are zones that are
unfilled. In contrast, whenever price action traverse through the zone (essentially closing
the zone)…these are zones that are filled and you no longer need to monitor the filled
zone. However, as stated in the prior discussion involving FED events, the ( ) FED
events are an exception to the filled rule (lifespan).
FED Event – It’s valid for use as a WRB Zone until the next FED event until the next
FED related key market event regardless if the price action is filled or unfilled.
Economic Report Event - Valid for use as a WRB Zone until the zone is completely
filled by the price action that occurs afterwards. Thus, the next economic report event
does not cancel the WRB Zone of a prior economic report event.
Breaking News Event - Valid for use as a WRB Zone until the zone is completely filled
by the price action that occurs afterwards. Thus, the next breaking news event does not
cancel the WRB Zone of a prior breaking news event.
Unfilled WRB Zone versus Filled WRB Zone Examples
On the chart below, we’re now going to take a closer look at the intraday price action of
the Russell 2000 Emini ER2 futures via the 3min chart on June 21st Thurs - June 22nd
Friday 2007. As you can see from the chart there a dozens of WRB Hidden GAPs that
could be used as WRB Zone.
However, the most important WRB Zones are the ones involved as a key market event
represented by the highlighted areas green and yellow.
The chart shows the FED related key market event (green highlight) of 12noon est
Philadelphia FED Survey being still used as a WRB Zone regardless to the price action
that fills in the WRB Zone. This FED related WRB Zone will remain in use until the next
FED related event on June 27th Wednesday FOMC Minutes unless there's a FED speech
in between. In contrast, the Miscellaneous Economic related key market event (yellow
highlight) of 10am est Leading Indicators on June 21st ended when it's WRB Zone was
filled in by the price action on June 22nd Friday.
By the way, June 22nd Friday contained a lot of unusual volatility in Emini ER2 and
that's because it was the Russell 2000 rebalancing (stocks being removed/replaced in the
index). Now take a look at June 25th Monday chart to see how the FED related WRB
Zone impacted the price action.
Although the above chart represents a 1min chart...I wanted to show that once you've
identified the WRB Zone key market event interval you want to use...you can then
monitor the price action afterwards via a different chart interval.
Once again, if you have any questions about the WRB Analysis Tutorials content...please
post your questions in the designated WRB Analysis Tutorial section at your discussion
forum.
Which of the above key market events are suitable for your particular
trading instrument?
It’s easy to determine which type of key market events have impact on the price action of
your trading instrument via monitoring the schedule time release of those key market
events to determine if a swing point or strong continuation price reaction.
Next, continue monitoring the identified key market event the next time it appears to see
if it produces another swing point or strong continuation price reaction along with
reviewing any archive calendars to see how the event impact the price action on your
historical charts. Simply, your trading instrument will act differently on a consistent basis
to a particular key market event in comparison to a different type of trading instrument.
For example, a treasury futures trader may only follow a few of the above FED events in
comparison to an energy futures trader that follows the EIA inventory/storage reports. In
contrast, a forex currency trader may only follow key market events (e.g. economic
reports, breaking news involving the economy) related to the country of the currency or
global events (e.g. country announcing debt problems) that has impact on all markets in
the world.
Therefore, it's your responsibility to determine which type of key market events is
suitable for monitoring while you trade that’ll help you identify key changes in
supply/demand that results in swing points or strong continuation price actions via
whatever resources you have access too. Also, ignoring how your trading instrument
reacts to key market events is one of the worst mistakes you’ll make in trading.
What about swing traders or position traders that uses higher frame
chart intervals?
The issue here involves traders that use tutorial chapter 2 on the daily or weekly chart
time frames. In contrast, tutorial chapters 3 – 12 are applied the same regardless if you’re
a day trader (e.g. closing all trades before the close, trading via small time frames),
swing trader (e.g. holding a trade overnight to several weeks) or position trader (e.g.
holding a trade several months).
Traders that use higher time frame intervals, there will be very few WRB Hidden GAPs
and most of these few WRB Hidden GAPs do qualify (swing point, strong continuation
definition) as WRB Zones because of the fact that there’s rarely not a key market event.
However, you must review the key market events that occurred during the week that
produced the WRB Hidden GAP on the daily, weekly or monthly charts to document the
key market event that’s involved along with determining if the key market event is
important enough to merit qualifying a WRB Hidden GAP as a WRB Zone.
Also, my research shows that WRB Zones have the same impact on the price action
regardless to the time frame being used.
Pattern Signals and Confirmation Signals as WRB Zones
Your own custom trade signals can be used as WRB Zones if they are involved (results) as
either a swing point or strong continuation price action as defined by the definitions from
WRB Tutorial Chapter 2 without the key market event rule requirement. You have two
options involving the RANGE or WRB Hidden GAP (unfilled) to determine the WRB
Zone via the price action involving your trade signals.
RANGE is the price action between the highest high and lowest low of the
intervals involved as your pattern signal.
WRB Hidden GAP (unfilled) interval that occurs within the price action of
your trade signal or the first WRB Hidden GAP that appears after your trade
signal.
As a reminder, we can setup a hidden private message thread (for your eyes only via
request only) at the forum for you to post charts and ask questions as you integrate WRB
Analysis into your trade strategies so that we can help you if you need help to determine
your WRB Zone via your trade strategies.
In contrast to tutorial chapter 2 with key market events, as mentioned, chapter 3 does
not involve key market events because the tutorial chapter involves your own trade
signals in replacement of key market events. Also, the advance tutorial chapters 4 – 12 do
not involve key market events and they involve objective price action rule descriptions.
Therefore, we are concerned only with trade signals (your own strategies or our
strategies) that are involved (results) as either a swing point or strong continuation price
action as defined by the definitions of WRB Tutorial Chapter 2 without the key market
event or defined by any price action definitions in the higher level WRB Tutorial Chapters
4 - 12.
These types of WRB Zones requires less work because you don't need to be concerned
with economic calendars, fed events nor real-time continuous news sources.
In addition, you'll be faster at recognizing these types of WRB Zones in real-time due to
the fact that you’re already familiar with your own pattern signals for those using their
own custom strategies in comparison to using our trade strategies as WRB Zones.
Swing Point Price Action
The above generic swing point charts are self explanatory and we’ll now use a basic
Japanese Candlestick pattern signal called Bullish Engulfing as an example of using a
pattern signal as a WRB Zone in tutorial chapter 3 because the generic engulfing
candlestick pattern is something you’ll see in every typical Japanese Candlestick book or
online article.
However, this is not one of our pattern signals from the trading reports AJCTR, APAOR,
STR or VTR. Therefore, you must use your own trade strategies or our trade strategies
along with discussing it at the forum to get proper support on how to use trade signals as
WRB Zones. Simply, trade signals are more than just a signal for you to trade…sometimes
they may qualify as a WRB Zone to help with understanding the price action after their
appearance and to help with the trade management of trade signals that follow.
Definition of the RANGE
The RANGE is the price action between the highest high and lowest low of the intervals
involved as your pattern signal (pretend the generic engulfing pattern is your trade
signal).
However, we’ve added an additional price action rule to this generic engulfing candlestick
pattern in that the Engulfing interval (c1) must engulf the close and open of a Doji
interval (c2) and the only thing you care about the price action before c2 is that it’s
declining. This is a very simple pattern signal prior to learning about WRB Analysis.
Note: Intervals annotated with (c) is because it’s a candlestick chart. In contrast, the
bar chart study guide version is annotated with (b). Thus, WRB Analysis is applicable
the same on bar charts for those that don’t want to use candlestick charts.
The chart below shows typical intervals (c1 and c2) involved in any bullish engulfing price
action although c2 does not need to be a doji. The c2 can also be a dark (red) interval or
white interval if they occur inside the body of the c1 interval for an engulfing price action.
The RANGE…can be different as shown below via several charts depending upon if you
have a WRB interval as the c1 or c2 interval. The first chart below…there is no WRB
interval as a c1 or c2. Thus, the range involves the price action between the High and Low
of those two particular intervals.
In contrast to the above chart…the below chart has the c1 interval as a WRB. This changes
the range because we must now include the three intervals before the WRB and they are
shown as c2, c3 and c4 intervals on the chart. Therefore, the RANGE now involves the
highest high and lowest low (annotated on charts as H and L) amongst all four intervals
(c1, c2, c3 and c4).
Definition of the WRB Hidden GAP (unfilled)
WRB Hidden GAP (unfilled) involves two possibilities.
WRB Hidden GAP (unfilled) interval that occurs within the price action as a c1
or c2 interval.
first WRB Hidden GAP that appears after your trade signal.
Also, it’s possible for both to appear as explained further below. The chart below
represents a WRB Hidden GAP (unfilled) interval that occurs within the price action as a
c1 or c2 interval.
In contrast, the chart below represents a first WRB Hidden GAP that appeared after the
pattern signal.
Comparing the two most recent charts above that represents a WRB Hidden GAP
(unfilled) that’s a c1 or c2 interval versus the first WRB Hidden GAP that occurs after
your pattern signal…these are different types of WRB Zones if they qualify as a swing
point or strong continuation price action.
What if both types of the WRB Hidden GAP (unfilled) are present?
The WRB Hidden GAP (unfilled) within the price action of your pattern signal must be
designated as the swing point whereas the first WRB Hidden GAP that occurs after your
pattern signal is a continuation price action if both types of WRB Hidden GAP (unfilled)
are present. Therefore, for the swing point identification, use the one that occurs within
your pattern signal as the WRB Zone.
What if the RANGE is too large of a WRB Zone?
RANGE of your pattern signal will only be too large if you have not identified properly the
key price actions of your pattern signal. That’s where we can help via the support you
have available. Thus, ask for help if the RANGE is frequently too large.
Also, WRB Zones via RANGE have no reliability advantage over WRB Zones via WRB
Hidden GAPs (unfilled). Yet, whichever you decide to use…be consistent so that you can
properly document your trading plan and it’s the documentation that will give you
valuable feedback to properly make an adjustments (adapting) your trade strategies to
changes in the market environment.
When is it Tradable?
The above information reveals that your pattern signals are still useful regardless if you
traded them or not because they can be used as WRB Zones in validating pattern signals
that occurs afterwards if the pattern signals occurs within the WRB Zone of a prior
pattern signal.
You only need one tick from any of the intervals in the price action of your pattern
signal to occur within a WRB Zone to become valid for trading. Thus, any tick of a price
from your pattern signal that shares a tick of a price within the WRB Zone…it’s a valid for
trading.
The chart below is the actual (not altered) chart of Proshares SSO via using the entire
RANGE of the c1 (WRB), c2, c3 and c4 intervals involved with the Bullish Engulfing price
action.
You should also notice that the WRB Zone is unfilled which is the reason why the green
highlight area continues to the right all the way to the end of the chart.
Simply, the lifespan of a WRB Zone involving pattern signals can be used again and
again until it’s filled in regardless if you get other pattern signals that generate their own
WRB Zones.
Strong Continuation Price Action
There are only two types of price actions as defined in tutorial chapter 2 and it’s highly
recommended you review the tutorial chapter 2 definitions prior to learning additional
price actions here in tutorial chapter 3 that’s specific towards particular trade strategies.
However, here in tutorial chapter 3 there’s an additional price action rule. Definition #1
and #2 price actions must occur at/after a higher low or lower high or within any
price action you have already identified as directional (up or down) via your own price
action definitions.
Definition #1 - This is a breakout above/below a prior reaction point and it’s

only for traders that use a breakout strategy of a trendline, reaction high/low,
swing point, range or volatility contraction via a WRB Hidden GAP (unfilled).
Definition #2 - Expansion/Contraction/Expansion analysis via v2 WRB -->

contracting intervals --> v1 WRB and at least one of the v intervals is a WRB
Hidden GAP (unfilled).
In contrast to the swing point price action…the strong continuation price action will tend
to be for traders that have strategies giving trade signals within strong continuation
(directional) price action or trend price action due to the fact that definition #1 or #2
must occur at/after a higher low or lower high or within any price action you have
already identified as directional (up or down) via your own price action definitions.
This higher low or lower high requirement does not exist for tutorial chapter 2 because
tutorial chapter 3 is more trade signal specific via your own trade strategies.
What to do if your trade signal is not involved with the above price action
descriptions?
The support (answers to your questions) will resolve this problem and help you identify
the key intervals involved in your trade signals to help identify key changes in
supply/demand if the price action results as a swing point or strong continuation price
action.
Therefore, as a reminder, we can setup a hidden private message thread (for your eyes
only via request only) at the forum for you to post charts and ask questions as you
integrate WRB Analysis into your trade strategies so that we can help you if you need help
to determine your WRB Zone via your trade strategies.
Profit Targets and First Stop Adjustment
It’s recommended to use WRB Analysis as profit targets because they occur within key
changes in supply/demand, volatility spikes as breakouts above/below contracting
volatility or within the range of a prior key change in supply/demand price area. Thus,
profit targets via WRB Analysis adapt extremely well to changing market conditions along
with avoiding the flaw of using fixed profit targets as if the price action never changes.
There are basic and advance profit target strategies via WRB Analysis and you can use
them in any combination. In contrast, fixed number profit targets (e.g. exit @ 1.5 points)
and risk:reward profit targets (e.g. risk 1 point for a 2 point reward) are flawed because
they assume in error that the price actions you’re trading are the same from one trade
to the next trade or that every trading day is the same.
With that said, the profit target strategies discussed in this document are only the basic
variations. In contrast, fee-base clients of the WRB Analysis Tutorial Chapters 1 – 12 or
trade signal strategies have free access to the advance profit target strategies via WRB
Analysis. Thus, the advance profit targets are not discussed in this tutorial document.
Profit target 1 (pt1) is your primary profit target regardless if it’s via the basic or
advance type because it’s at pt1 where you must use WRB Analysis to determine if you
should exit the entire position, scale out the position or keep the entire position for an
bigger profit target (pt2, pt3, pt4 et cetera). Profit targets beyond pt1 are only discussed
with fee-base clients of the WRB Analysis Tutorials 4 – 12 or fee-base clients of our trade
signal strategies (AJCTR, APAOR, STR and VTR) @
http://www.thestrategylab.com/TradingReports.htm
Regardless, you must do backtesting along with using information from your real trading
results to determine if your trade signals tend to reach a pt1, pt2, pt3 or higher especially
in different volatility market conditions (low volatility versus high volatility versus normal
volatility).
For example, if you trade strategies tend to reach a pt2…you’ll know your reward profit
target the next time your trade signal appears and you’ll be using a profit target that’s
adaptive to current price action instead of a fixed number profit target.
Basic Profit Targets after Long Entry
Example - pt1 price @ 701 < pt2 price @ 705 < pt3 price @ 710
White WRB (don't wait for the interval to complete itself) that appears after and
above the pattern signal. This can’t be shown via a hindsight chart (another flaw via
learning via hindsight charts) but soon I’ll provide a direct link to real-time video.
For example, pretend you’re using the 15 min chart interval and you enter a trade @
1045am. The trade becomes profitable and develops into a White WRB @ 1053am via a
volatility spike that’s prior to the next 15 min interval completing @ 1045am. You would
exit your trade position @ 1053am while the interval is still a White WRB even though it’s
not 1100am (completion of the interval).
White WRB Hidden GAP upon close of the interval that appears after and above the
pattern signal.
WRB Zones that are still open (not filled in by the price action) and above the pattern
signal.
Basic Profit Targets after Short Entry
Example - pt1 price @ 701 < pt2 price @ 662 < pt3 price @ 628
Dark WRB (don't wait for the interval to complete itself) that appears after and
below the pattern signal. This can’t be shown via a hindsight chart (another flaw via
learning via hindsight charts) but soon I’ll provide a direct link to real-time video.
For example, pretend you’re using the 15 min chart interval and you enter a trade @
1045am. The trade becomes profitable and develops into a Dark WRB @ 1053am via a
volatility spike that’s prior to the next 15 min interval completing @ 1045am. You would
exit your trade position @ 1053am while the interval is still a Dark WRB even though it’s
not 1100am (completion of the interval).
Dark WRB Hidden GAP upon close of the interval that appears after and below the
pattern signal.
WRB Zones that are still open (not filled in by the price action) and below the pattern
signal.
Basic First Stop Adjustment
You should move your initial stop/loss protection into a 1 tick/pip trailing stop or
whatever the first stop adjustment is needed to pay for the trade (commission or spread)
instead of using a breakeven first trailing stop adjustment because breakeven is actually a
trade loss after you factor in the cost of the trade. Yet, do not move your initial stop/loss
protection into a trailing stop until a trigger price is reached.
That trigger price is either when a WRB forms (not a Hidden GAP) above a Long signal
or below a Short signal regardless to your actual entry price or a fixed price (e.g. moves
7 ticks/pips in the profit). Yet, the flaw with fixed trigger prices or profit targets is that
they often are not in sync with the current price action because they are designed like a
risk:reward scenario by assuming in error the price action will be the same each time
after entry. In contrast, profit targets via WRB Analysis, are more adaptive to current
price action after entry.
More in-depth information about trade management after entry (e.g. trailing stops
after the first stop adjustment) is only provided to fee-base clients of the WRB Analysis
Tutorials 4 – 12 or fee-base clients of our trade signal strategies (AJCTR, APAOR, STR
and VTR) @ http://www.thestrategylab.com/TradingReports.htm
By the way, your trade signals will have different results when occurring in low or
declining volatility market conditions versus high or rising volatility market conditions.
Simply, you’ll need to use different profit targets as volatility changes regardless if you’re
using WRB Analysis, risk:reward ratios or any other type of profit target to minimize
early exits.
This is something we work with fee-base clients whenever they request help with such
in exploiting the adaptive aspect of WRB Analysis to improve the performance of their
profitable trades.
WRB Analysis Tutorial Chapters 4 - 12
Advance WRB Analysis and Zones
You now have learned and applied tutorial chapters 1, 2 and 3 that represent the basic
tutorial chapters prior to the advance WRB Analysis education material.
As stated, the only way to judge the merits of WRB Analysis is to compare your trading
performance with WRB Analysis versus your trading performance prior to WRB
Analysis when you knew nothing about it. Also, tutorial chapters 11 and 12 have bonus
trade signal strategies associated with them that will give you a sneak preview into the
trade signal strategies from the Volatility Trading Report (VTR) @
http://www.thestrategylab.com/VolatilityTrading.htm
The bonus trade signal strategies are only given to those that post “demonstration of
knowledge” (DOKs) for all 12 tutorial chapters. In fact, tutorial chapter 12 and its bonus
trade signal strategy is a favorite amongst our forex currency clients.
In addition, the table of contents for the advance tutorial chapters 4 – 12 is only shared
via request only for those curious about the titles of each tutorial chapter.
Pay $450 for all the advance WRB Analysis Tutorial chapters 4 - 12 at the same time
for a savings of $225 because you'll be paying $50 per tutorial chapter instead of $75 per
tutorial chapter.
Wire transfer is available or you can contact us for other payment options. Also, if you
cannot see the above image payment information…click here.
Copyright and Legal Stuff
TheStrategyLab.com and M.A. Perry (a.k.a. wrbtrader and NihabaAshi) WRB Analysis
and Price Action Only strategies are protected under The Digital
Millennium Copyright Act.
Therefore, you yourself are not allowed to re-disseminate, re-distribute, repost any
aspects of our price action only strategies, wrb analysis or any other resources of ours to
file sharing, message boards, forums, blogs, websites, youtube, myspace, facebook,
twitter, news groups, emails, mail nor via any other social network communication source
without the permission of TheStrategyLab.com regardless if you're a fee-base client or
not.
In addition, you’re not allowed to make a copy and then share or sell that copy nor are
you allowed to share or sell the original while keeping a copy without the permission of
TheStrategyLab.com
Further, you're not allowed to provide education (free or fee-base) via revealing concepts
from our WRB Analysis Tutorials or Trade Signal Strategies regardless if you use the
exact same words or rephrase the concepts without the permission of
TheStrategyLab.com and members that ignore the copyright protection...the following
will occur:
You will be denied access to the fee-base resource and the refund policy is voided.
Agreements for your access to any new resources, bonus materials via special
promotions will be voided.
Forums, blogs, chat room or any other online location that continues to store the
message posts or files after we've contacted them about the copyright protection violation
will have the urls (links) to those messages removed from all major search engines cache
(e.g. Google DMCA policy) upon notification to the search engines about the copyright
protection violation.
Simply, you're not anonymous. TheStrategyLab.com and a few trusted clients are
members of most active trading forums around the world via different user names. We
often use their help and search engines to search for discussions involving concepts from
our trade methodology. Therefore, it's not worth risking losing access to resources of
TheStrategyLab.com because we often give members in good standing free access to
bonus education material.
Also, each trader has a unique copy via an identifier code embedded within the
strategies to make it very easy for us to determine which client or none client has been
sharing our fee-base material without our permission...including bogus (fake) copies.
Therefore, we'll seek legal counseling for possible legal action against the member and
any forum, blog, chat room, website et cetera that continues to allow posting or file
storage of our copyright protected education material after search engines have removed
the urls (links) from their cache.
WRB Analysis (wide range body analysis or wide range bar analysis) was designed in the
early 1980's by M.A. Perry via merging the study of changes in volatility and
supply/demand as a method for understanding the price action. This method has
objective rules unique to TheStrategyLab.com and we have traders documented since
the 1980's using our WRB Analysis although marketing of the trade methodology for
financial compensation didn't occur until year 2000.
In fact, WRB Analysis Tutorials is basically unchanged since origination except for some
small adaptation in a few of the tutorial chapters whenever market conditions change to
merit such a change. However, all changes are only via concepts of M.A. Perry from many
years of market/trading experience.
With that said, you’re allowed to mention to any trader that you use M.A. Perry WRB
Analysis or mention you’re using the trade signal strategies (AJCTR, APAOR, STR or
VTR) from TheStrategyLab. Yet, if the individual requests more details from you about
the concepts in the WRB Analysis Tutorials or trade signal strategies…send him/her to
the TSL Support Forum or tell the trader to contact me directly via email.
Also, if you want to be financially compensated or want free access to our fee-base
resources for sending traders to TheStrategyLab.com, contact me and request a referral
code so that you can give to other traders because we have a few clients making consistent
money from referrals via using their youtube, myspace, facebook or twitter social network
when talking to others.
Sincerely,
M.A. Perry and Associates
TheStrategyLab.com
http://www.thestrategylab.com/CopyrightProtected.htm
If a man does not keep pace with his companions, perhaps it is because he hears a
different drummer. Let him step to the music he hears, however measured or far
away.--Henry David Thoreau

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WRB Analysis Tutorials

More information via examples of a D.O.K @

What exactly is WRB Analysis

WRB (its body) > Body of interval 1

WRB (its body) > Body of interval 2

WRB (its body) > Body of interval 3

WRB Analysis in combo with your Strategy

WRB Analysis ---> Trade Strategy ---> Trading Plan

Fading Breakout Strategy

Double Bottom/Double Top Strategy

Profit Target Strategy

Market Seasonal Tendencies (Cycles) Analysis

Volatility Analysis and it replaces the need for volume analysis

Japanese Candlestick Patterns (time and volume based candlestick charts)

CME Emini Futures EMD, ES and NQ

ICE Emini TF Futures (formerly CME ER2)

CBOT mini-sized Dow Futures YM

Eurex Index Derivatives (futures) DAX and DJ Euro Stoxx50

Eurex Fixed Income Derivatives (futures) BUND, BOBL and Schatz

Euronext Futures FTSE-100 and CAC-40

CME Futures EuroFX 6E and EC

Treasury Futures T-Notes ZT, ZN, ZF and T-Bonds ZB

Forex Currencies GbpUsd, EurUsd, EurYen and UsdCdn

Hang Seng Index Futures HSI and mini-Hang Seng MHI

A wide range body (WRB) interval or expansion body in reference to the

WRB (its body) > Body of interval 1

WRB (its body) > Body of interval 2

WRB (its body) > Body of interval 3

Yet, we do not recommend using anything less than 3 intervals.

WRB Hidden GAP (unfilled)

Next, involving the price action itself in real-time trading conditions...

Here are a few key concepts to remember about Chapter 2:

There must be a key market event (Chapter 2 only).

Philadelphia FED Survey

Richmond Fed Index

FED Chairman Bernanke speeches

*FED related speeches by board members and presidents

*Former FED Chairman Greenspan speeches

ECB Announcement that's Europe's version of the U.S. FOMC Announcement

BOE Announcement that's England's version of the U.S. FOMC Announcement

BOC Announcement that's Canada's version of the U.S. FOMC Announcement

Economic Key Market Events

First WRB Hidden GAPs

Swing Point Definitions (two different types)

Note: v2 WRB and v1 WRB are the same color intervals.

Life Span of a Key Market Event WRB Zone

WRB Hidden GAP (unfilled) involves two possibilities.

Definition #1 - This is a breakout above/below a prior reaction point and it’s

Definition #2 - Expansion/Contraction/Expansion analysis via v2 WRB -->

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