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Seven Day Wide-Range and Outside Day Pattern (WR70D)

WR70D Pattern

A 7-day Wide Range bar is formed when a current bar has the widest range in the last 7 bars. An outside bar develops when the low of the current bar is lower than the previous bar and the current high is higher than the previous bar. Trades are only entered in the direction of the current trend.

Wide Range bars forming at the start of a trend or at key reversal levels could signal strong bullish and bearish trends. If Wide-Range bars are forming out of a consolidation range, they signal price continuation in the direction of breakouts. And Wide-Range bars forming at the end of the rallies and sell-offs, the bars may be signaling exhaustion and potential trend reversals.

Trade: Wait for WR70D to form in the current up or down trend. In an uptrend, trade only "long" one tick above the high of the WR70D bar. In down trends, trade only "short" one tick below the low of the WR70D bar.

Stop: Place a "stop" order one-tick below the low of the WR70D bar (for breakouts). Place a "stop" order one-tick above the high of the WR70D bar (for breakdowns).

Target:

Set targets of 50% to 100% of the WR70D range from the breakout or breakdowns levels.

Outsida Dav

Trading WR70D Pattern

Wide Range Bar

Trading WR7QD Pattern

The example above illustrates a WR70D pattern from the Russell Emini (ER2) 30 minute chart. Please note the Wide Range bar inset. Wide Range bars are only traded in the breakout direction of the trends. A 7-day Wide Range bar signals trend shift. Long trades are initiated high above the Wide Range bar. In the example above, bars A, B and C are in down-trend and trades are only taken from downside. Bar D is formed in uptrend and trade is only taken in the upside direction.

1. Enter a "long" trade one-tick above the high of the WR70D bar.

2. Place a "stop" order one-tick below the low of the WR70D bar.

3. Place targets from 50% to 100% of the WR70D range from the breakout level.

Trading WR70D Pattern

WideRange Bars

Source; TieadeStdtioii

1420.00

1418.00

1416.00

1414.001

1412.00;

12:19

13:14

13:54

14:16

14:38

15:19

15:58

Trading WR7QD Pattern

The example above shows a 7-day Wide-Range with outside bar formations from the S&P futures 610 tick chart. WR70D bars signal the exhaustion and trend reversals. Trading WR70D coupled with any confirmation indicators, or other market patterns, could be profitable. The first WR70D bar was formed around lunch time in an uptrend. A "long" trade can be entered above the high of the WR70D bar at (1). The second WR70D bar is formed at around 1:30 pm in downtrend. A downside trade is triggered below the low of the Bar 2. The third WR70D bar is a trend reversal bar and trade is triggered above the high of the WR70D bar. The fourth WR70D bar is a continuation bar similar to the third WR70D bar.

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