TheStrategyLab.com Price Action Trading Support Forum

Hi Mark!

I post my corrected question here.

The question is:
I often make entries that coincide with the very end of strong directional movement.

As an example of these late trade entries I attach my screenshot, where you can see these places denoted with red arrows.

I'm interested in 2 main questions:
- How to determine that the movement is ending and that the WRB zone is not as strong as it should be?
- Do I need to look at the higher timeframe (if I trade off 5 min chart, should I look at 1H timeframe to see the places, where the price can face strong resistance aganst my entries) as confirmation for entry.
Or is it possible that we have identified WRB Zone on H1 timeframe and we wait until the price enters this WRB Zone and we expect a new smaller WBR Zomer on lower timeframe like 1, 5, 15 min to confirm our trade entry and to avoid contradictions?

Hi,

I moved your question from "Trader Talk" to the section called "WRB Analysis Tutorial Chapters 1, 2 and 3 Study Guide (Questions, Answers & DOKs)".

First, you must have a trade signal strategy you've backtested with the WRB Analysis Free Study Guide. This will enable you to learn the weaknesses and strengths of your trade signal strategy...it will help you to develop confidence in my trade signals.

Simply, pretend you're using a trend reversal trade signal strategy...if your trade signal has been backtested and you trust your backtested results...

You will then know or have confidence in your trade signal strategy telling you what to do when the price action reaches a S/R level of a WRB Zone.

Another way to explain this is that the WRB Zone alone does not tell you when a price action is going to reverse at the WRB Zone S/R level or continue through the WRB Zone S/R level. To know that you need to trust the backtest results of your trade signal strategy merged with different types of WRB Zones discussed in the WRB Analysis Free Study Guide.

To answer your other question involving using higher time frames, your trade signal strategy should only be used on the same time frame as the WRB Zone. For example, if you're looking for trade signals on the 15-minute chart...you should also only be using WRB Zones on the 15-minute chart.

With that said, if you have the backtest results of your trade signal strategy mixing lower time frames with higher time frames...you'll then have the framework to use your WRB Zones differently.

The key is your backtest results (trade performance) of your trade signal strategy without WRB Zones versus your trade signal strategy merged with WRB Zones.

Therefore, you must first start with your trade signal strategy time frame and you then use WRB Zones on the same time frame. Document your trade signal strategy backtest results with WRB Zones in the same time frame. You can then document your trade signal on one time frame and a WRB Zone on a different time frame (e.g. trade signal on a 15-minute chart with WRB Zone on a 1-hour chart).

Regards,
M.A. Perry
TheStrategyLab.com