Before I get started, I would just like to say that doing these DOKs has substantially enhanced my understanding of the material in ways that I didn't expect to happen. I
thought I understood the material after reading it a few times, but now I feel like I
own the material similarly to memorizing a piece of sheetmusic when learning a song for piano.
Tutorial Chapter 2 covered Key Market Events as WRB Zones. All WRB Hidden Gaps are represented by blue-outlined bars. (Hooray for Sierra Chart! It makes it so easy to make my own studies!)
The three types of key market events that generate WRB Zones are Fed Events, Other Economic Reports, and Breaking News.
Only the first WRB Hidden Gap following a key market event is to be considered for analysis as a WRB S/R Zone.
WRB S/R Zones created by Fed Events (except speeches by board members, presidents, and former board members) are valid until the next Fed Event, even if the WRB S/R Zone is filled. All other events are not to be used after they are filled.
This attachment shows
Bearish Swing Point and WRB S/R Zone near the FOMC Minutes that were released on 1/3 at 14:00. Note the prior WRB Hidden Gap.
Attachment:
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A
Bullish Swing Point would be the inverse of the above: a key news event preceded by a WRB Hidden gap and followed by a WRB Hidden Gap where the price action at the time of the key news event were below both the WRB Hidden Gaps.
WRB S/R Zones can also be determined by Strong Continuation as seen in the following attachment demonstrating a
Bearish Continuation:
Attachment:
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A
Bullish Continuation would be the inverse of the above: a key news event preceded by a bull V2 and followed by a bull V1, at least one of the V2/V1 legs containing a WRB Hidden Gap.
WRB Hidden Gaps give two options for where to draw the S/R lines when drawing a WRB Zone. The first is to use the gap between the low/high of the surrounding bars. The second option is to use the body of the WRB as the WRB Zone. As a candlestick user, using the body of the WRB Gap Bar makes more sense to me, so this is the method I represented in the attached screenshots.
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