Thursday, July 14, 2011

Analysis of Control Points on EURUSD


Here is a little analysis of the control bar and the control price points on the euro. Attached is the chart of euro 15M with the control bar marked and i have also marked off the top and bottom of the control bar which act as control price points.

As can be seen, the price action has been a bit wayward and we have had price go here , there and everywhere. The one good trade could have been when you caught the price close to the lows of A and then exited at 30-40 pips when price shot up to 4252. This was a clear move as the repeated testing of the low (4187) shows that a clear base was being set up for an upmove.

So, if you had taken that long, you would have made good money. Rest of the trades based on the range or break of that control bar would, at best, have been exited for BE. Overall, no clear price action and hence BE or a few pips today would have been a good trading day considering the conditions.