I recently watched Alphonso Esposito’s New Mastery Series at TradeSmart University regarding the Wide Range Bar (WRB) strategy. It seemed awesomely simple and straight forward, and seems to give good signals to boot, so I decided I would make it even easier for my fellow ThinkOrSwim users to add this strategy to their arsenals. Basically you look for these wide range bars, as defined by Alphonso in the course, and buy on an subsequent retracement of approximately 40% (with custom tweaks explained in the course) back into the range of the bar.
This set of ThinkScripts lets you scan for these types of setups, and additionally it comes with a chart study that plots a signal whenever a WRB setup appears, and plots the 40% line as well.
Most of the parameters can be customized, but are set by default to those explained in the course, except for the minimum volume multiplier, which I just set myself since no specific rule was stated in the course.
The rules are pretty straightforward, but if you want to learn more about how to trade this strategy, you’ll need to sign up for the class at TradeSmart University.
UPDATE — I’ve been especially productive lately and decided to go ahead and code this into a mechanical strategy that can be backtested on any chart you want! That file will be included now as well.
UPDATE 2 — New ALERTS and also options to extend the retracement line plot have been added to version 2.0 of the indicator, as well as (?) tooltip hints for each input setting!