Trading the trend

[VIKAS 21]

 

[VIKAS 21]

Pl. post if u have any query about pivots, otherwise will move to our next topic" wide range bar".

 

[VIKAS 21]

WIDE RANGE BARS:

WRB bar at key price levels indicates the severe imbalance of supply/demand at that price level. The function of WRB bars is more or less like gaps in stock's daily charts. An initial WRB bar is like a breakaway gap. The final WRB bar is like an exhaustion gap. Therefore we can use WRB bars to give us hints for the next possible price movement.

Two wide-range bars to the upside that overlap only a small amount indicate aggressive demand for two bars in succession. The intersection of these two bars is a zone of support/resistance . Orders placed above high of first WRB with SL at low of the bar can result in good return..

price breakout from a consolidation with a wide range bar, is a sign of strength.




When the market is moving aggressively up in new high ground and the following actions take place, it is time to move stops closer or take profits:
1. A wide-range reversal bar.
2. A narrow-range or inside bar comes after the wide range bar.
This type action implies supply is entering the market.

Apart from the wider range, what we have to look for in a WRB is that it should have a bigger body and smaller tails…
means it should open at lower & end at high in case of breakout WRB,
Open at high & end at low in case of exhaustion WRBS....

 

[VIKAS 21]

1. At point 1, though range is big, but closing is very near to open, not a WRB

2. VALID WRB

3. VALID WRB

WE will short below the low of first WRB, the most important thing is to wait for the completion of full bar & watch it's closing , as there may also be case of failure as in the case of point 1 , price didn't show any acceptance there.

 

[VIKAS 21]

1. VALID WRB

2. VALID WRB

3. Though having a wick near opening but still a WRB due to its closing at it's high...

 

[stumper]

1. At point 1, though range is big, but closing is very near to open, not a WRB

2. VALID WRB

3. VALID WRB

WE will short below the low of first WRB, the most important thing is to wait for the completion of full bar & watch it's closing , as there may also be case of failure as in the case of point 1 , price didn't show any acceptance there.

Vikas :Can you elaborate definition of a WRB ?

 

[VIKAS 21]

Vikas :Can you elaborate definition of a WRB ?

plss see the post no-113

 

[stumper]

plss see the post no-113

I read it before posting my query. You had written :
"Apart from the wider range, what we have to look for in a WRB is that it should have a bigger body and smaller tails
means it should open at lower & end at high in case of breakout WRB,
Open at high & end at low in case of exhaustion WRBS...."

Is that all?

 

[VIKAS 21]

I read it before posting my query. You had written :
"Apart from the wider range, what we have to look for in a WRB is that it should have a bigger body and smaller tails
means it should open at lower & end at high in case of breakout WRB,
Open at high & end at low in case of exhaustion WRBS...."

Is that all?

you have read only the material below chart,plss also read the material above the chart,how to trade wrb will be discussed in strategy part..

 

[learningforever]

Rally - Series of bars with higher highs and higher lows. Simplest kind of Uptrend

Bars in a rally need not have higher high but they must have higher low.

VERY IMP: In a Rally, track the Lows

Rally is in question if the low of current bar is lower than previous bars low


Decline - Series of bars with lower highs and lower lows. Simplest kind of Downtrend.

Bars in a decline need not have lower low but they must have lower high

VERY IMP: In a Decline, track the Highs

Decline is in question if high of current bar is higher than previous bars high

is this thread same as teach a man to fish by Mr. Saint? I have seen another thread discussing teach a man to fish by Sam Fisher. Why we cant continue there itself if it is same as Saint's concept? We should respect the original guru of the system no?