Wide Range Bars & What They Reveal
From the Trading Desk of Oliver L. Velez
Wide Range Bars (WRBs) come in two varieties: 1) Igniting WRBs and 2) Ending WRBs. The above chart demonstrates the former. Igniting Wide-range bars represent one of the clearest indications that a stock is highly likely to continue moving in the WRB's direction...by a substantial amount.
Let's not forget that institutional buying and selling still account for roughly 85% of the market's daily volume. And in order for us (regular individual market participants) to profit, we need a healthy degree of institution money flow to come into a stock after we have established our position. Let's face it...for most of us, it's not our neighbors causing multi billion dollar advances (or declines) in stocks. It's the large pension funds, mutual funds, hedge funds and money management firms that have the substantial, lasting effects on stocks, and knowing when they have just begun a major buying (or selling) spree can give us just the edge we need to pull large amounts of money out of the market. WRBs do just that!
The above 1-minute chart of KLA Tencor Corp (KLAC) shows three powerful WRBs, each of which subsequently lead to higher prices. But what makes these three the igniting kind that tends to forewarn of more gains, versus the ending variety, which tends to lead to reversals?
Well, I explain fully in the podcast below. Listen carefully and be sure to take notes, because this is one of the events that our traders use to pull money out of the markets every single day. They are plentiful; they are reliable; they are real! Enjoy!
Download | Duration: 00:21:14
Re: Oliver
Sometimes an article will state that a podcast is available, but I don't see the link. e.g. Wide Range Bar article, couldn't find the podcast link. Any suggestions?
By the way, I've just discovered your 'blog'. What a great way to share your views and receive input from traders. Thank you.
Reply to this
Wanda:
Thank you so much for the kind words. I'm glad you find the start of the blog informative. If all goes according to plan, it will only get better. As for the podcasts, nothing is wrong on your end. They are simply not recorded yet. To be truthful, I have not officially launched the blog to the public as yet. Before I do, I hoped to get some decent content posted so that those who joined immediately after the official launch would have numerous articles and podcasts to read and listen to, not just one. Shortly the missing podcasts will be recorded. I promise. Just stay tuned.
Happy Trading!
Reply to this
i did not see the podcast answer to what the 3 wrb show
Reply to this
The pod cast is forthcoming. Stay tuned.
Reply to this
Mr Velez:
Thank you so much for taking the time to share your thoughts in this blog!
Reply to this
You're quite welcome. It is my pleasure to do so. Stay tuned.
Reply to this
For those of us who can't afford the cost of your seminars,your notes and your teaching here is invaluable.Keep up the good work Oliver.Thank you very much.....
Reply to this
Thank so much for your kind words. Its remarks like these that make the sleepless nights worthwhile.
But as for the cost of my seminars, I believe people can't afford NOT to take them. I know this may sound a bit self-serving but in truth it is not. Think of it this way. What is $10,000 amortized over a lifetime? What's the cost per year, per month or even per day? Almost nonexistent right? My students pay a one time fee and get trained by me for the rest of their lives. That is why I call it Trade for Life. They Also receive all my paid for services free for life. What's more, I feel so confident in my methods and the students who decide to embrace them that I personally fund each one with $50,000 of my own money. And I'm prepared to even do that for life. So when you factor in the lifetime aspect of the teaching nd mentoring, along with the funding, I'm actually working too cheaply. Geeze! Wait a minute! Maybe I should second think this and RAISE the price even more <smile>. Kidding! Thanks for allowing the mini commercial.
Reply to this
Oliver - Deeply informative and beautifully presented as always. In connection with WRBs that ignite a series of moves, I would like to ask you to consider addressing trailing methods on a trade like the one above. In addition to bar-by-bar and 8ma / 20ma trail methods that you teach during the 2-day course, could you also discuss and showcase trailing on a 5-minute, 2-minute, and/or 1-minute pivot, a technique often used in the Live Trading Room? Learning how well these different techniques work is of course a matter of experience, analysis of trades taken, and refinement of one's trading plan and toolkit. Nonetheless it would help to see and hear your perspective.
I appreciate all the detailed precise instruction that you and VCM offer and look forward to your thoughts -
Michael
Reply to this
Michael:
I'm delighted that you found the piece on WRBs informative, as they are one of my favorite market events to exploit for profits because what they say and reveal to the astute chart reader is so unmistakable and powerful. As for the laundry list of things you'd like me to go over, all I will say now is "in due time." I plan to, over a period of time, make this blog representative of every thing my traders as I do each day in the markets to profit. Stay tuned.
Reply to this
Hello Oliver, thank you for your reply. Since I wrote that question a few weeks ago, Paul has shown the pivot trail method daily in the Live Trading Room. But even more profoundly, he has encourged me to take every one of these concepts that VCM teaches and define it for myself in my own trading plan. That process is helping to actively internalize the information and make it my own. Kudos to you for not only providing a plethora of educational tools through multiple channels, but also encouraging self-development and ultimately self-actualization in the realm of trading.
Reply to this
Michael:
As you undoubtedly know, there are several levels of mastery that must be obtained before one can say that he/she has arrived at a permanent state of achievement in trading. Those much needed levels are:
1) Educational Mastery
2) Technological Mastery
3) Experiential Mastery
4) Psychological Mastery
These four levels of mastery are greatly focused on by us and we do all we can to help our traders work through each one. Most are not even aware of what is needed to become a successful trader. These people will simply forever be lost. Many others who have a vague glimpse of what is needed don't have the proper guides and mentors to help them along the way. I'm so glad and appreciative that you have recognized this in us and call VCM your home.
Stay the course and keep up the good work.
Reply to this
This is fabulous! -- and I can hear it over and over again till it becomes part of me! GREAT! Thank you! (I'm going to try to find this setup tomorrow!)
PS- I don't know why I could not hear the audios before but now this came through with no snags. Thank you)
Reply to this
Carmen:
I'm glad you are finding the blog helpful. the best is only yet to come. Stay tuned.
Reply to this