TheStrategyLab.com Price Action Trading Support Forum

Greetings again M.A. Perry. It's been a while and I hope all is well with you.
I want to understand chapter 2 and 3 of the WRB analysis free study guide but unfortunately I can't.
However I do now see you call a swing point what others call a reversal or Market Structure shift and a strong continuation what others call a break of Structure.
I can visualize these on a chart but I do not know when I would open a trade based on Ch 3 after the hidden gap is created.
Reading ch 3 it seems to explain a hidden gap following a trade signal will be the WRB zone...but I have no idea when I would place the trade!...even if I use a basic moving average strategy...or ANY signal strategy giving me an arrow or whatever...
I see the signal and after identify the WRB Zone....1. what is next??? 2. Do I wait for ANOTHER signal in the WRB zone only then trade?
3. If so won't another WRB zone possibly emerge from this new signal?
4. And perhaps price never returns to the WRB zone and no trades are made then just make a chart full of zones?
I just want to see one basic trade signal example on a chart from you from beginning to end if you could answer my questions. I'd greatly appreciate it!

Hi Tiger7F168,

First, you must have a trade signal strategy to use with WRB Analysis.

WRB Analysis is only a price action analysis...it is not a trade signal strategy because WRB Analysis produces WRB Zones to tell you when to look for your trade signal strategy to produce trade signals when the price action enters a WRB Zone from tutorial chapter 2 or 3.


Also, before learning the WRB Analysis Free Study Guide...you must have already tested your trade signal strategy to determine where you enter/exit your trades. This is critical backtested information you need before using WRB Analysis so that you can compare your backtest results, simulator trade results, or real money trade results before you learned WRB Analysis (WRB Zones) and again after learning which types of KME WRB Zones are suitable for merger with your trade signal strategy.

If I'm not mistaken, I believe you're using price-moving averages taught by Al Brooks to determine your trades (entry signal, exit signal, and profit targets). Al Brooks teaches traders how to trade...not TheStrategyLab.com because people come to me to "improve" the performance of their trade signal strategy.

It seems to me that you're confused about Al Brooks's trade signal strategy...confused about his strategy trade signals (entry/exit), and where to place stop/loss because you have not posted any charts to show "examples" that show a Long/Short signal, Stop/Loss.

• post charts / post charts / post charts of your identification of trade signals on the chart without WRB Analysis before you begin posting charts of tutorial chapters 1, 2 and 3

I am not going to judge your trade signal strategy. I am not going to backtest your trade signal strategy. I am not going to tell you what type of KME WRB Zones to use with your trade signal strategy.

After you have posted your charts with trade signals from whatever you learned from Al Brooks. I will then ask you to identify key concepts in tutorial chapter 1 (WRB intervals, WRB Hidden gap intervals), then learn one KME WRB Zone (trend continuation or swing point) from tutorial chapter 2. Next, use what you learned about that one KME WRB Zone and then apply it to your trade signal strategy as if it is that one KME WRB Zone for tutorial chapter 3...

Regardless, of whether you are or not using price moving averages or using some other trade signal strategy.


Just as importantly, you must test your trade signal strategy trade performance (hypothetical backtest, simulator trading, or real money trading) to have your metrics to measure against when you learn WRB Analysis (KME WRB Zones).

After the above, you will know if you prefer trading trends with your trade signal strategy or trading trend reversals with your trade signal strategy, or whatever price action you like to trade.

You can then begin learning the WRB Analysis Free Study Guide. When you reach tutorial chapter 2, briefly read through the different types of WRB Zones to have a basic understanding.

Now pretend your trade signal strategy is good at giving you signals as trend reversal rather than trend continuation. You should then begin learning the trend reversal WRB Zones with KMEs (key market events) to merge your trend reversal signal because you already understand what a reversal price action looks like based on the knowledge you have for your trend reversal trade signal strategy.

I do not know what you're trading instrument you're trading but you must learn what KMEs trigger volatility spikes (WRB Hidden GAP intervals) in your trading instrument.

Let us pretend you're trading Brent Oil Futures and the Crude Oil Inventories Report is a KME that produces WRB Hidden GAP intervals that result in "trend reversal WRB Zones". Highlight those types of trend reversal WRB Zones on your chart while ignoring "trend continuation WRB Zones" because you're trying to master one thing before learning another type of WRB Zone.

The above approach will only produce you with a small number of WRB Zones because you're not ready to learn any other type of WRB Zone (e.g. trend continuation WRB Zones).

Only when you've mastered the trend reversal WRB Zones that are produced by Crude Oil Inventories Report...you will know if WRB Analysis (WRB Zones) has improved the performance of that trade signal strategy that you decide to merge with WRB Analysis....you will then be ready to learn a different type of KME WRB Zone from tutorial chapter 2 or 3.

Tutorial Chapter 3 WRB Zones are the easiest because it involve your trade signal strategy (your entry signals into a trade) that then produces a valid trend continuation price action or trend reversal price action.

With the above said, YES, swing points and reversals are the same. I prefer to call them "swing points". Others prefer to use more specific names that correlate with what they know such as double top patterns, wedge patterns, head & shoulders patterns et cetera.

I instead group them all as "swing points" but ONLY if it qualifies as a key market event (KME) WRB Zone from tutorial chapter 2.

Reminder, you should only be learning ONE WRB Zone from tutorial chapter 2. Select one...a trend reversal WRB Zone or a trend continuation WRB Zone. Use it with your trade signal strategy.

Do the above before trying to learn tutorial chapter 3 and before learning any other KME WRB Zone from tutorial chapter 2.

Last of all, if you do not have a trade signal strategy to use with WRB Zones...WRB Analysis will be useless and possibly very difficult to comprehend. Without a trade signal strategy, you will not know when to enter, or exit your trades and you will not know when to execute those trades when its price action enters a WRB Zone.

For example, pretend you identify a trend reversal (swing point) WRB Zone between the price of 10 to 14. A 4-point wide WRB Zone. You mark it on your chart and wait to see when the price action enters the price range between 14 to 10.

Now pretend the price action is above 14 and at 16.50 but then drops down to 13.99

That price action is now inside the WRB Zone (14 to 10). You now wait to see if your trend reversal trade signal produces a trade signal (Long or Short) while it is inside that range of 14 to 10. If your trade signal shows up inside that range...you take the trade. In contrast, if your trade signal does not show up while inside the WRB Zone (14 to 10)...you do not take the trade.

However, if your trade signal shows up outside that WRB Zone (above 14 or below 10)...you document that trade so that you can compare the trade results of your trade signals occurring "outside" the WRB Zone versus your trade signals occurring inside the WRB Zone.

The above is the only way to determine the merits of using your trade signal strategy with WRB Analysis. You're trying to determine if WRB Analysis improves the performance of your trade signal strategy.


Just as important, you should know the performance metrics (backtest, simulator trading, or real money trading) of that trade signal strategy BEFORE you begin learning WRB Analysis because WRB Analysis is only a price action analysis...not a trade signal strategy.

You mentioned you want to see a chart example of the above...I no longer post chart examples but other users of WRB Analysis have posted chart examples of their trade signal strategy being used with WRB Analysis.

I will look for a chart example created already in the private thread section from another user or from someone who posted one in the public area of the forum even though they're using a different trade signal strategy than you.

I stopped posting chart examples in 2017 during my rehab recovery from an illness/hospitalization in the fall of 2016. Instead, I now rely on members to post their chart from their data provider...showing where the trader has identified a valid KME WRB Zone from tutorial chapter 2 along with identifying on the same chart the location of their trade signals (entry, exit, stop/loss placement).

I will then highlight on their chart which of their trade signals occurred inside the range of the WRB Zone if they're not able to determine on their own if the price action of their trade signal has occurred or not occurred inside the range of a WRB Zone.

wrbtrader
TheStrategyLab.com