Attached are the charts of EU and GU 5M with the control bars marked (ABC in EU and AB in GU). I have also drawn lines through the high and low of these control bars so that it is easy to watch the price action at these points.
In EU, we have 3 control bars within the price range 1.4037-1.3988-1.3968. As the ranges are big, we can play within the range. We need to wait for the price to approach these price points and go long or short accordingly. If price nears 1.3988, for eg., then we can go long with very small SL and a TP of 25-30 pips (as it is the Asia session). If 1.3988 is broken downwards, then we wait for retrace and then enter short with small SL for move to 1.3968. This is how the control prices are traded. In case, this range is broken on either side, then we wait for price to retrace to these control price and go long/short accordingly. The challenge is to wait patiently for prices to test these control price points. It will happen, Just that we need to wait patiently.
In GU, there are only 2 bars and i have marked off the control price points on the chart. On first look, it might look as if i have marked off the price range but as i said, the control bars can be identified immediately after their close and its not that i have plotted the range. You can see then that the price has traded beautifully within the control price range and just by trading this range, you could have made 30-40 pips already, as I did. I started trading these bars immediately after they appeared and i am posting these bars only now. As i write, price has broken thru the bars. I will wait for price to retrace to the control price point (1.5925) to take a short with small SL.
As noted yesterday, these bars might change during the course of the day and i will post them as and when they appear. Do keep your eyes on my twitter and the blog for updates.
I look forward to a bearish day for euro and GU. Keep this in mind while trading.
