What's a "small WRB"?
So what does everyone think about Wide Range Bar analysis?
- Thread starter FortuneTeller
- Start date
Wide Range Bar Analysis is free from what I can find on the internet such as Dot Net Tutorials and they use to have automated trading systems too...free.
Hmmm...something doesn't make sense. Wide Range Bar Analysis in this thread seems different than the Wide Range Bar Analysis at Dot Net tutorials.
wrbtrader
Hmmm...something doesn't make sense. Wide Range Bar Analysis in this thread seems different than the Wide Range Bar Analysis at Dot Net tutorials.
wrbtrader
Well, it's not a big one. It's a small one. It only has to be bigger than the last 3 bars to qualify as a small wrb.
OK, thanks. I'm used to the more "conventional" definitions of a "WRB," which typically use a longer period than (just) 3 bars in an attempt to establish what the "average" or "normal"-sized bar is.
For example, Bulkowski uses "3 times the 30-period average range" to indicate a "WRB." Toby Crabel uses a the smallest range of a 20-period average to determine his "NRB." Etc. Many traders would more subjectively describe a "WRB" as one that stands out on the chart wrt its larger size when compared to recent, "average"-sized bars.
Using your definition, a "(small) WRB" could apparently even be what many TA traders would consider an "NRB" (e.g., a very small, tight doji). For example, you would refer to the 4th bar in a series of what most would call "NRBs" a "small WRB" simply because it has a slightly bigger range than the last 3 NRBs. To me, that's like saying a skinny person is a "slim fat person." That type of bar would not even stand out visually on the chart as any type of significant range expansion, and I'd still call it an "NRB." Interesting... but it's about whatever works for you!
Some traders like to use WRB's as entry bars as well as targets. It depends on the market context.
Some traders like to use indicators to show them WRB's on more than one time frame for faster analysis. Here are a few charts thrown into one pic for an example:
In my ever so humble opinion, you don't need indicators with these charts even though it makes for a prettier chart.
In my ever so humble opinion, you don't need indicators with these charts even though it makes for a prettier chart.
Doesn't mean anything to me like that, just seemingly random candles spiking around.
True. This was just an example of the indicators, not any setups/ect.