Apologies for not posting earlier but had been tracking some nice entries and hence was busy with that.
Today, we had 2 very good examples for CBA. Look at the attached 15M chart of the euro. i have marked off the 2 control bars that i see from today. Both of them have high ranges and are hence easy to locate. I have marked off the high and low of the 2 bars using red lines.The low of A acts as good support and you can see that once the low was broken, the price never came back above the high of A, which acts as resistance. If you had taken a short on break of the low at 4512 with the SL above the high, you would be up by about 50 pips now. Or, if you prefer a smaller SL, notice the price action after the break of the low of B. Price retraced exactly to the low of A at 4512 and this was a very good signal for short (break of support and retrace) and you would again be up by 50 pips by now. The DD for this trade would have been less than 2 pips..I took this trade, closed half at 20 pips and am still holding the rest at BE.You had another opportunity to short, with very low SL, at the low of B at 4498. Doesnt it look beautiful ? How exactly has price retraced exactly to support identified by CBA.
You would notice that price has been struggling to break through 4475. Reason? Look at the hourly chart and if you notice, the high of the control bar A, marked in the hourly chart, comes in around 4475. Hence this region is strong support and so the price was struggling to break thru till now.
Today, we had 2 very good examples for CBA. Look at the attached 15M chart of the euro. i have marked off the 2 control bars that i see from today. Both of them have high ranges and are hence easy to locate. I have marked off the high and low of the 2 bars using red lines.The low of A acts as good support and you can see that once the low was broken, the price never came back above the high of A, which acts as resistance. If you had taken a short on break of the low at 4512 with the SL above the high, you would be up by about 50 pips now. Or, if you prefer a smaller SL, notice the price action after the break of the low of B. Price retraced exactly to the low of A at 4512 and this was a very good signal for short (break of support and retrace) and you would again be up by 50 pips by now. The DD for this trade would have been less than 2 pips..I took this trade, closed half at 20 pips and am still holding the rest at BE.You had another opportunity to short, with very low SL, at the low of B at 4498. Doesnt it look beautiful ? How exactly has price retraced exactly to support identified by CBA.
You would notice that price has been struggling to break through 4475. Reason? Look at the hourly chart and if you notice, the high of the control bar A, marked in the hourly chart, comes in around 4475. Hence this region is strong support and so the price was struggling to break thru till now.
