Power of the control bars on EU and GU

Attached are the updated charts of EU and GU on 5M. Looks at the price action and look how amazingly the highs and lows of the control bars have worked. EU hit the high of the bar A to the pip and has fallen 50 pips. GU broken the low of the bar B, did a retest and now has fallen 20 pips.

you could have made 50-60 pips over the past 30 mins easily.....

Updated chart with control bar in GU

Attached is the 5M chart of GU...In an earlier post, i had marked A and B as control bars. You can see how the highs and lows of these bars have acted as good support and resistance. Between B and Z, you see a test of its high which acted as resistance and price went down. At Z, you have a break and retest of the low of bar B. A short there would have yielded 30 pips easily. Again at Y and X, you see a retest of its lows which again acted as resistance and price going down. As the market is slow, you dont see big moves at Y and X.

Updated chart with control bar in euro

Its been a quite hour or so in the markets which gives me time to post this updated chart on the euro. I had marked out a new control bar on the euro a couple of posts back and now, i have just drawn lines off the top and bottom of that bar. Look at the price action around the bar. Remember, this is just a M5 chart which is considered by many traders as pure noise.

As the market is ranging , you dont get big moves either side but you can clearly see how the high and low of that bar acts as support/resistance. Something which can definitely be traded for good pips with a very good R: R ratio...amazing...isnt it?

Hourly Control Bar for EURGBP

Attached is the latest hourly control bar for EURGBP with its highs and lows marked. You can see how it has held the pair within the range of the bar and any breakouts have been good for nice pips...

How do u trade this? many ways. Trade the range. Take short when price reaches the high of the bar. Take long when price reaches the low of the bar. Small SL, good returns.

Wait for break and retrace and go long/short on the retrace so that you make good pips on the bounce. This is trading the breakouts.

If you look at the GU hourly bar in my previous post, you can see how the price bounced off 30 pips from the high of the bar. DD ? less than 7 pips...thats the power of these bars..

Over the weekend, i will post the latest hourly and daily control bars for the various pairs and we shall track them for the next week.

Clear Explanation of control bars.

So far, i have tried explaining control bars and how to trade them using M5 charts and these are too fast for me to post and also very tedious...here i present 1H charts which r easier to understand...i have marked off the 2 recent control bars on 1H chart as A and B...

The idea to trade these is to wait and do nothing till the price is within the control bars...If there is a breakout, then go long or short with small SL of 30-40 pips and u can make 100s of pips.

Look at bar B...The next 3 -4 bars after that dont break above it and so you just wait. Then there is a breakout and retest of the high of bar B. You can either enter on the breakout or the retest. You can have SL of 30-40 pips and you would have got in at around 5880 and you have a trade for 300-400 pips. As i said, these bars are noticed as soon as they appear and i am not fixing data after the fact.

Now look at the most recent bar A. Again, a long on a breakout of this would have fetched you close to 200 pips. You are now having a retest of the bar. Would be interesting to see if it bounces up or whether it gets inside the bar A. If an hourly bar closes inside bar A, then the high of Bar A would be a good resistance. Shorts near the high of this bar (after break thru inside the bar) would be good for a move down to the low of this bar. Idea is to take off one half of your trade for 1:1 and leave the rest for 3:1 or 4:1 reward risk ratio...

Control Bars for GU

Attached is the chart for GU with the control bars marked....watch out for PA around the lows and highs..idea is to enter long near the lows if PA is good and short near the top if PA says so...if the bars are broken, go short/long accordingly....

New Control Bar for EU

Juts now noticed my mistake...a new control bar had appeared and i didnt notice...took out my stop when my stop should have been beyond that bar.....sheesh...