Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

brownsfan019

Wide Range Bodies or 'big' candles

Recommended Posts

If you buy at 100 and roll over at 120, what price is more important for you? 100 where you have entered, or 120 where you have rolled over?

 

Thank you sevensa. Yes, that's a very good point. I have not thought about it that way.

Share this post


Link to post
Share on other sites

Example of a "WRB Gap Sandwich":

 

Just wanted to show a WRB Gap Sandwich that creates the Supply/Demand Delta Zone. The pattern is simple: two WRBs with an actual price gap (hint) in between. Once we see the interval after the second WRB, we know if we do indeed have a Gap Sandwich.

 

Price moves down and on the second WRB we get a wide spread candle closing off its lows on very high volume with the next bar up. Demand must have entered on that candle.

 

The really interesting things, however, take place on the 1 min. First, notice the vertical movement involved in creating the Gap Sandwich. In Market Profile terms this vertical movement means the market is unbalanced. As it streaks down, it creates a few Balance Areas. The key one being the last one. Not because it is the last one so much as because of its relative size. A Balance Area of this size tends to lead to Horizontal movement or consolidation. Or in Profile terms a balanced market (hence the name Balance Zone).

 

If one was to take an actual Market Profile chart, one would notice that after periods of vertical movement, there are periods of horizontal movement. In fact, if one collapses the data one would find that as the period of consolidation (horizontal movement) more approximate a bell shape cure, the more likely it is to be ready to enter another vertical phase. That is what the 1 min chart is showing.

 

Anyway, back on the 10 min chart. Notice that the candle that fills the actual price Gap is also a narrow candle closing up and closing off its highs on volume less than the previous two bars. Simply, it is no demand.

 

But look what happens on the 1. Price moves down and makes a higher low within the Supply/Demand Delta Zone and we get a No Supply. This market is poised to go up, not down. We can get long with a "price target" of the upper level of the Delta Zone.

MATS7.thumb.png.33a5a0e584e5b6a17781f9010062f28c.png

Share this post


Link to post
Share on other sites
Does anyone has all the charts uploaded which were deleted? It's a pity if they aren't uploaded again.

 

What charts were deleted ?

 

I asked because I just did a quick reviews of parts of the thread and I see "attached thumbnails" and then when I click on the image...charts appear.

 

Thus, are you talking about specific charts that someone posted as a link to somewhere else that's not Traderslaboratory? In fact, can you name the message post number that had a deleted chart. For example, the number of my message post is #180 in the upper right corner. I'm replying to your message post #179.

Share this post


Link to post
Share on other sites

Here there's a post whose chart was deleted: http://www.traderslaboratory.com/forums/151/wide-range-bodies-big-candles-1480-2.html#post8324

 

Another: http://www.traderslaboratory.com/forums/151/wide-range-bodies-big-candles-1480-2.html#post8338

 

...and there are a lot more. Those charts which were deleted were made by Anonymous.

 

 

PS: Mark, I admire you. I am 20 years old and learning to trade. I hope to learn about WRB. Could you give me some advice to manage to do that?

 

Thanks in advance,

 

Paul

Share this post


Link to post
Share on other sites
...

 

PS: Mark, I admire you. I am 20 years old and learning to trade. I hope to learn about WRB. Could you give me some advice to manage to do that?

 

Thanks in advance,

 

Paul

 

Paul,

 

Thanks for the compliment about WRB's. I recommend you start posting charts and asking questions about WRB's related to the price action on the chart regardless if you're a price action only trader or someone using technical indicators.

Share this post


Link to post
Share on other sites

You're welcome, you deserved that comment because I realised you're a good trader reading your posts here and looking at your webpage (unfortunately, I can't pay for the WRB education since I'm from a developing country which has a weak currency).

 

I don't think I am able to post charts with questions on WRB now. I don't feel sure about my trading...not even enought to make questions about WRB. Will try to do it in the future (when I know a little more).

Share this post


Link to post
Share on other sites

1/ If a 'Big Candle/WRB' occurs at the start of a breakout, or against trend, go with it.

2/ If a 'Big Candle/WRB' occurs during a trend, in the trends direction, get ready for sideways and then/or a reversal, or continuation later

 

Not fool proof of course, but you need to take everything in cntext

Share this post


Link to post
Share on other sites

Although I am a newbie at trading, I'll give you my opinion of what has been discussed in this thread so far:

 

Sometimes it's best to take all the profits when a WRB appears (for example, if we are near resistance and you're long...then you can enter if price pushes through resistance).

 

Other times, it's wise to take half profits and let the other half in the market to see what happens (one should take profits when they are enough to break even at least...if the trend continues you'll make profit with the other half which wasn't sold...the worst that can happen is that you don't lose money because you breakeven).

 

Finally, there are some times when, in my opinion, you should close all your position because the market is telling you supply has entered in the market heavily (let's suppose you're long). In this case, you can close your long and go short or simply close your long and see what happens.

 

 

Am I clear? Please, have in mind I'm newbie at trading and I'm just trading with paper money right now.

Share this post


Link to post
Share on other sites
Although I am a newbie at trading, I'll give you my opinion of what has been discussed in this thread so far:

 

Sometimes it's best to take all the profits when a WRB appears (for example, if we are near resistance and you're long...then you can enter if price pushes through resistance).

 

Other times, it's wise to take half profits and let the other half in the market to see what happens (one should take profits when they are enough to break even at least...if the trend continues you'll make profit with the other half which wasn't sold...the worst that can happen is that you don't lose money because you breakeven).

 

Finally, there are some times when, in my opinion, you should close all your position because the market is telling you supply has entered in the market heavily (let's suppose you're long). In this case, you can close your long and go short or simply close your long and see what happens.

 

 

Am I clear? Please, have in mind I'm newbie at trading and I'm just trading with paper money right now.

 

Hi,

 

It seems like you're talking about support/resistance analysis and position size management involving exiting a trade position.

 

However, I am a strong believer that position size management on entry or exits is a critical aspect of trading.

 

For example, if your trade results show that you tend to be more consistently profitable in rising volatility trading conditions and less profitable in declining volatility trading conditions...

 

It only makes sense to be normal position size during increasing volatility and lower position size during declining volatility trading conditions. Further, considering you're talking about support/resistance...you need to take a closer look at the past trading or backtesting results to determine when it's suitable to scale out versus exiting the entire trade position.

 

There's also the impact via human nature...that fear and greed thing. For example, if you're up big (as in beyond your profit goals) for the day and then you're in another profitable trade...you may just let it ride longer after reaching the profit target in the trade. Whereas on another trading day when you're struggling or barely profitable...when a profit target is reach you exit all the position to lock in the profits.

 

Regardless, when to scale out is a very tricky thing...no magical formula to determine when the scale and when to exit all.

Edited by wrbtrader

Share this post


Link to post
Share on other sites

Mark, in my opinion, averaging down (when you know you're near a low) and taking partial profits is a great way to trade. Also you can use options to hedge or improve your position.

Share this post


Link to post
Share on other sites
Mark, in my opinion, averaging down (when you know you're near a low) and taking partial profits is a great way to trade. Also you can use options to hedge or improve your position.

 

Hi Arpaf,

 

You need to be very careful with your learning right now because you've stated you're a newbie, paper trading along with not sure about your trading along with the fact you use in this thread the words in my opinion as if you have not determine if such will work for you with real money on the line.

 

My point is that you've mentioned a lot of different topics in this thread such as support/resistance, averaging down, hedging with options, position size management, supply/demand and WRB.

 

That's too much stuff to be learning out of the gate and you're going to easily get lost if you have not already.

 

Therefore, I highly recommend you start a trade journal here at Traderslaboratory that includes your paper trades (trades in your broker simulator), thoughts you had during the trading day along with charts of any key trades you feel had the most impact on your trading day or learning curve.

 

Trade journals are essential for any trader because it gives a wealth of information that broker statements can't give all by itself. Thus, trade journals in combo with broker statements is a very powerful. In fact, if you can't maintain a trade journal...I recommend you don't get involved with trading (seriously).

Share this post


Link to post
Share on other sites

Yes, I'm a newbie at trading and have been paper trading for a year.

 

Ok, I'll start a journal in the short term and would love to see the experts of this forum (including you) there giving me advice - I need it.

Share this post


Link to post
Share on other sites
One of those things that's going to be different strokes for different folks, but where the Open-Close range is no less than say 95% of the High-Low range. That would do it for me.

 

({[(H-L) - ABS(O-C)] / (H-L)}*100) <= (100-95) {or whatever your preferred percentage is}.

 

Hi can someone please tell me what 'ABS' stands for?

 

Cheers

 

Carlton

Share this post


Link to post
Share on other sites
Hi can someone please tell me what 'ABS' stands for?

 

Cheers

 

Carlton

 

ABS = absolute value

 

ie. no plus or minus sign to the value... it is all positive

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • lmfx just officially launched their own LMGX token, Im planning to grab a couple of hundred and maybe have the option to stake them. 
    • Date: 2nd April 2025.   Market on Edge: Tariff Announcement and Volatility Ahead!   The US economic and employment data continues to deteriorate with the job vacancies figures dropping to a 5-month low. In addition to this, the IMS Manufacturing PMI also fell below expectations. However, both the US Dollar and Gold declined simultaneously following the release of the two figures, an uncommon occurrence in the market. Traders expect a key factor to be today’s ‘liberation day’ where the US will impose tariffs on imports. USDJPY - Traders Await Tariff Confirmation! Traders looking to determine how the USDJPY will look today will find it difficult to determine until the US confirms its tariff plan. Today is the day when Trump previously stated he would finalize and announce his tariff plan. The administration has not yet released the policy, but investors expect it to be the most expansionary in a century. President Trump is due to speak at 20:00 GMT. On HFM's Calendar the speech is stated as "US Liberation Day Tariff Announcement". Currently, analysts are expecting Trump’s Tariff Plan to impose tariffs on the EU, chips and pharmaceuticals later today as well as reciprocal tariffs. Economists have a good idea of how these tariffs may take effect, but reciprocal tariffs are still unspecified. In addition to this, 25% tariffs on the car industry will start tomorrow. The tariffs on the foreign cars industry are a factor which will particularly impact Japan. Although, traders should note that this is what is expected and is not yet finalised. Last week, President Trump stated that he would implement retaliatory tariffs but allow exemptions for certain US trade partners. Treasury Secretary Mr Bessent and National Economic Council Director Mr Hassett suggested that the restrictions would primarily target 15 countries responsible for the bulk of the US trade deficit. However, yesterday, Trump contradicted these statements, asserting that additional duties would be imposed on any country that has implemented similar measures against US products. The day’s volatility will depend on which route the US administration takes. The harshness of the policy will influence both the Japanese Yen as well as the US Dollar.   USDJPY 5-Minute Chart   US Economic and Employment Data The JOLT Job Vacancies figure fell below expectations and is lower than the previous month’s figure. The JOLT Job Vacancies read 7.57 million whereas the average of the past 6 months is 7.78 million. The ISM Manufacturing Index also fell below the key level of 50.00 and was 5 points lower than what analysts were expecting. The data is negative for the US Dollar, particularly as the latest release applies more pressure on the Federal Reserve to cut interest rates. However, this is unlikely to happen if the trade policy ignites higher and stickier inflation. In the Bank of Japan’s Governor's latest speech, Mr Ueda said that the tariffs are likely to trigger higher inflation. USDJPY Technical Analysis Currently, the Japanese Yen Index is the worst performing of the day while the US Dollar Index is more or less unchanged. However, this is something traders will continue to monitor as the EU session starts. In the 2-hour timeframe, the USDJPY is trading at the neutral level below the 75-bar EMA and 100-bar SMA. The RSI and MACD is also at the neutral level meaning traders should be open to price movements in either direction. On the smaller timeframes, such as the 5-minute timeframe, there is a slight bias towards a bullish outcome. However, this is only likely if the latest bearish swing does not drop below the 200-Bar SMA.     The key resistant level can be seen at 150.262 and the support level at 149.115. Breakout levels are at 149.988 and 149.674. Key Takeaway Points: Job vacancies hit a five-month low, and the ISM Manufacturing PMI missed expectations, adding pressure on the Federal Reserve regarding interest rate decisions. Traders await confirmation on Trump’s tariff policy, which is expected to impact the EU, chips, pharmaceuticals, and foreign car industries. The severity of the tariffs will influence both the JPY and the USD, with traders waiting for final policy details. The Japanese Yen Index is the worst index of the day while the US Dollar Index is unchanged. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • HLF Herbalife stock, watch for a bull flag breakout above 9.02 at https://stockconsultant.com/?HLF
    • Date: 1st April 2025.   Will Gold’s Rally Hold Strong as New Trade Tariffs Take Effect Tomorrow?   Gold continues to increase in value for a sixth consecutive day and is trading more than 17% higher in 2025. Amid fear of higher inflation, a recession and the tariffs war escalating investors continue to invest into Gold pushing demand higher. The trade policy from April 2nd onwards continues to be a key factor for the whole market. Can Gold maintain its upward trend? Trade Policy From Tomorrow Onwards Starting as soon as tomorrow, a 25% tariff will be imposed on all passenger cars imported into the United States. While this White House policy is anticipated to negatively affect European industrial performance, it will also lead to higher transportation and maintenance costs for everyday American taxpayers. The negative impact expected on both the EU and US is one of the reasons investors continue to buy Gold. Additionally, last month, President Donald Trump announced reciprocal sanctions against any trade partners that impose import restrictions on US goods. Furthermore, tariffs on products from Canada and the EU could increase even more if they attempt to coordinate a response. Overall, investors continue to worry that new trade barriers will prompt retaliatory measures, particularly from China, the Eurozone, and Japan. Any retaliation is likely to escalate the trade conflict and prompt another reaction from the US. Experts at Goldman Sachs and other investment banks warn that this will lead to rising inflation and unemployment. They also caution that it could effectively halt economic growth in the US.   XAUUSD 1-Hour Chart   The Weakness In The US Dollar Another factor which is allowing the price of XAUUSD to increase in value is the US Dollar which has been unable to maintain any bullish momentum. Despite last week’s Core PCE Price Index rising to its highest level since February 2024, the US Dollar has been unable to see any significant rise in value. Due to the US Dollar and Gold's inverse correlation, the price of Gold is benefiting from the Dollar weakness. Investors worry that new trade barriers will prompt retaliatory measures from China, the Eurozone, and Japan, potentially escalating the conflict. Experts at The Goldman Sachs Group Inc. believe that such actions by the US administration will drive rising inflation and unemployment while effectively halting economic growth in the country. Can Gold Maintain Momentum? When it comes to technical analysis, the price of Gold is not trading at a price where oscillators are indicating the instrument is overbought. The Relative Strength Index currently trades at 68.88, outside of the overbought area, since Gold’s price fell 0.65% during this morning’s session. However, even with this decline, the price still remains 0.40% higher than the day’s open price. In terms of fundamental analysis, there continues to be plenty of factors indicating the price could continue to rise. However, the price movement of the week will also partially depend on the employment data from the US. The US is due to release the JOLTS Job Vacancies for February this afternoon, the ADP Non-Farm Employment Change tomorrow, and the NFP Change and Unemployment Rate on Friday. If all data reads higher than expectations, investors may look to sell to lock in profits at the high price. Key Takeaway Points: Gold’s Rally Continues – Up 17% in 2025 as investors seek safety from inflation, recession fears, and trade tensions. Trade War Impact – New US tariffs and potential retaliation from China, the EU, and Japan drive uncertainty, boosting Gold demand. Weak US Dollar – The Dollar’s struggle supports Gold’s rise due to their inverse correlation. Gold’s Outlook – Uptrend may continue, but US jobs data could trigger profit-taking. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 31st March 2025.   Trump Confirms Tariffs on All Countries, Sending Stocks Lower.   The NASDAQ continues to trade lower due to the US confirming the latest tariffs will be on all countries. In addition to this, bearish volatility also is largely due to the higher inflation data from Friday. The NASDAQ declines to its lowest price since September 11th 2024. Core PCE Price Index - Inflation Increases Again! The PCE Price Index read 2.5% aligning with expert forecasts not triggering any alarm bells. However, the Core PCE Price Index rose from 0.3% to 0.4% MoM and from 2.7% to 2.8% YoY, signalling growing inflationary pressure. This increases the likelihood that the Federal Reserve will maintain elevated interest rates for an extended period. The NASDAQ fell 2.60% due to the higher inflation reading which is known to pressure the stock market due to pressure on consumer demand and a more hawkish Federal Reserve. Boston Fed President Susan Collins recently commented that tariffs could drive up inflation, though the long-term impact remains uncertain. She told journalists that a short-term spike is the most probable outcome but believes the current pause in monetary policy adjustments is appropriate given the prevailing uncertainties. Although, certain investment banks such as JP Morgan actually believe the Federal Reserve will be forced into cutting rates. This is due to expectations that the economy will struggle under the new trade policy. For example, JP Morgan expects the Federal Reserve to delay rate cuts but will quickly cut towards the end of 2025. Market Risk Appetite Takes a Hit! A big factor for the day is the drop in the risk appetite of investors. This can be seen from the VIX which is up almost 6%, Gold which is trading 1.30% higher and the Japanese Yen which is the day’s best performing currency. Most safe haven assets, bar the US Dollar, increase in value. It is also worth noting that all indices are decreasing in value during this morning's Asian session with the Nikkei225 and NASDAQ witnessing the strongest decline. Previously the stock market rose in value as investors heard rumours that tariffs would only be on certain countries. This bullish swing occurred between March 14th and 25th. Over the weekend, President Donald Trump indicated that the upcoming tariffs would apply to all countries, not just those with the largest trade imbalances with the US. NASDAQ - Technical Analysis In terms of technical analysis, the NASDAQ continues to obtain indications that sellers control the price action. The price opens on a bearish price gap measuring 0.30% and trades below all Moving Averages on all timeframes. The NASDAQ also trades below the VWAP and almost 100% of the most influential components (stocks) are declining in value.     The next significant support level is at $18,313, and the resistance level stands at $20,367.95. Key Takeaway Points: NASDAQ falls to its lowest since September 2024 as the US confirms tariffs on all countries, adding to inflation concerns. Core PCE inflation rises to 0.4% MoM and 2.8% YoY, increasing the likelihood of prolonged high interest rates. Investor risk appetite drops as VIX jumps 6%, gold gains 1.3%, and safe-haven assets outperform. NASDAQ shows strong bearish momentum, trading below key technical levels with support at $18,313 and resistance at $20,367.95. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.