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BF, do you scalp?
As far as waiting for another WRB, correct, one would just wait as long as it takes. But remember, the definition of a WRB is the largest body of the last 3 intervals. So WRBs are not simply ultra huge bars. The wider the more significant but a "narrow" body could be WRB of the prior intervals are extremely narrow.
I am glad you are finding value in this concept. Like I said, I like the fact that WRBs are market driven. The more we can get out of our own way and listen to the market the better. |
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Pivot - I don't call myself a scalper, but some might think so. :p
I see what you are saying about the WRB and the largest body of the last 3 intervals. I am equating WRB with big candle and that is not how you are using them. My only concern with using the last 3, 5 or whatever intervals was that when I looked at doing that and coded into TS, it was giving me 'WRBs' that I did not think were good exits at all... Again, I may be using a very simplified and literal interpretation of WRB, but I was just not impressed saying of the last X intervals, if this body is bigger, I am out. Have you really tested and looked at that analysis? I guess it also depends on the type of chart and timeframe being used. I am using 450 share bars on the YM, so with that 'low' of a setting, it's easy for many WRB's to print based on the interval analysis, which ends up taking me out of trades almost immediately after entry... So, that's not going to work for me.
After some more analysis on my end using WRB's in the literal sense, I am comfortable with them as exits, but only after the trade moves so much in my favor. In other words, once the trade moves +8 on the YM, then I will look for a WRB as reason to exit. The idea being that I cannot be taken out at +3, even if a 'WRB' technically showed up. I realize that this may conflict with the idea of taking what the market gives you, but I also cannot turn a trade that would have delivered nicely into +3.