So how do u formulate a trading strategy based on the control bar analysis ?as mentioned before, the control bars appear in all timeframes ranging from 5M to the weekly. So first of all, decide which time frame you are comfortable trading in. Some are comfortable trading in 15M while some are comfortable trading the daily...choose which timeframe you want to trade in. I suggest that for day traders, you choose 15M and for those who work on other jobs, you can choose the daily timeframe.Once u have chosen a timeframe, stick to it and trade that timeframe. Dont keep changing the TF depending on how the trade goes....stick to it...
once u have chosen the TF, mark the control bars. These are bars with the highest ranges/volatility (between the high and the low) and mark the high and low of these control bars. For 15M, take the bars from the past 2 mnths. For daily, take bars from past 6 mnths. You should get about 6-8 control bars. Mark the high and low of each. You should get good support and resistance areas.....will discuss step 2 later...
once u have chosen the TF, mark the control bars. These are bars with the highest ranges/volatility (between the high and the low) and mark the high and low of these control bars. For 15M, take the bars from the past 2 mnths. For daily, take bars from past 6 mnths. You should get about 6-8 control bars. Mark the high and low of each. You should get good support and resistance areas.....will discuss step 2 later...
