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brownsfan019

Wide Range Bodies or 'big' candles

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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.

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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

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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.

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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

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...

 

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.

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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).

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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

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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.

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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

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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.

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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).

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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.

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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

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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

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