[Soultrader]

Interesting thread. I use WRB's as an exit especially if it occurs near a pivot. Sometimes full and at sometimes half my position depending on the current market environment. I personally like to wait until the close of the WRB and then stare at tape to see sellers. Profit taking will occur regardless but what I am trying to spot on tape is the additional shorts that may come in to reverse price. If not, the markets usually form a doji... may retrace a little and then take off again.

The reason why I like WBR is because of my entry. I like to enter in narrow range bars. Not necessarily the first one in the move but I enter based on price levels and to minimize my risk I focus hard on entries. (thought I find exits harder) WBR to me means that those buying it are chasing the markets. The late comers are extremely frustrated to watch price move without them that they rush in to buy. Now, knowing that 5% make money trading futures... my take is that the 5% are the ones that bought/sold in the previous narrow range bars. The WBR offers a good exit signal to sell into strength. I rely heavily on the tape to cut my last portion loose or hold. Something which is impossible for me to explain in words...

I am not candlestick expert so would love to hear from more experienced candle traders.