Update on the euro control bar

Attached is the hourly chart of the euro. Around noon on Friday, i had pointed out the control bar for the euro and had also posted an article of where i would be looking for longs on the euro. This is an update on the chart. As in the previous article, i have marked the top of the control bar, and you can clearly see how the price came to the exact same support region and then bounced more than 40 pips.

I had called for a long around 4325-4330 and if you had taken that, it would have been a cool 40 pips for a DD of less than 10 pips. Thats the power of the control bar.

Where to re-establish longs in EURUSD ?

Attached is the hourly chart for EURUSD. It is easy to locate the control bar in this chart. I have marked off the top of the control bar and this should act as a good support. I would be looking for new longs at around 1.4330 and this aligns with the top of the control bar and is also a good area of previous support/resistance. Keep it simple.

Control Bar for EURUSD

Attached is the hourly chart of EURUSD. A control bar has formed and i have marked the high and low of the bar. This is a very big bar and hence easy to identify. We can see how the low of the bar acted as good support and has caused a bounce of about 40 pips now. The top of the bar comes in around 4230 and this area should act as a very good resistance now.

This area of resistance will be further supported by the previous resistance in the same price range as can be seen on the left of this bar. I believe this should set us into a good range for the next few hrs. Rest will depend on what outcome the euro summit, that is currently going on, comes out with.

Control Bars for GBPJPY

Attached is the hourly chart for GBPJPY as requested by one of our beloved readers. We have 2 control bars on the hourly chart with basically similar highs and lows. So, consdering both the bars , i have marked off the high and low. You can see clearly that so far, despite deveral attempts, there has not been an hourly close above the high of the control bars and it has acted as good resistance.

The pound is proving to be a stubborn customer in all its crosses and has been pretty range. I expect GBPJPY to go down and so would be looking to short with a SL above 127.9. Why 127.90? Thats where the high of the daily control bar resides. As you know, the daily is usually more powerful than the hourly and thats why the SL is above 127.90.

Control Bars for GU

Attached is the hourly chart of GU. This pair is just meandering with no specific direction. It has been ranging for quite sometime with good support from below but has not been able to make a break to the upside. Again, i have marked the high range control bar from 2 days back and you can see that today morning, the high of this bar, acting as support now, was tested and the price has since bounced about 30 pips.

This pair looks quite weak and hopefully, today's MPC meeting minutes should give it a specific direction. I expect it to go down but lets see.

Control Bar in EURUSD

Attached is the hourly chart for EURUSD. Yesterday we had a very
choppy day with no clear direction and the euro was moving up and down.

So we did not get any big range control bars yesterday. In the chart, i have marked
off the control bar from the day before. You can see that the price is currently
testing the high of the bar and so far, the high has held. Considering the fact that
this pair has not fallen much, i would expect this resistance to be broken and we might
be making a move towards 4270.

Control Bar on 15M in GU

Attached is the 15M chart of GU with the control bar marked as A. It is the bar with the highest range and as you can see, ever since it appeared , it has kept the price within itself. You can see how the high and low of this bar has acted as good resistance and support.

So, for this trading, all that you need to do is identify control bars. For now, just have a look at your chart and choose the bar with the highest range. That should be your control bar and then trade off it with small SL and TP.

Control Bar on GU

Attached is the 1H chart of GBPUSD. The control bar has again been marked as A. It is very simple and easy to locate. You can see that the price has kept bouncing off the highs of the control bar. The high of the bar serves as a good support after it has been broken. It has bounced 3-4 times now and each time , you could have easily made 30-40 pips. I had taken a short on EURGBP and long on GBPUSD as per the control bars and have already closed each of them for 40 pips. Had taken them with a SL of 20 pips. Easy !!

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?

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....

Analysis of Control Points on EURUSD

Attached is the chart for EURUSD 5M. In the morning, during the asian session, i had indicated bars A B and C and marked the control price points as 3968, 3988 and 4037. After bar C, 3968 was never tested again but 3988 was broken and tested as can be seen from the chart. This gave a us from 3988 to 4037 for 45 pips with DD of less than 5 pips.

In the London session, i had tweeted that the next control price point was 4057. Just before point D, you can see that price being broken and then being retested at point D. At the retest, we enter a long for a 50 pip ride to 4110 with a DD of 7 pips !! Great trades again.



There we

Beautiful long off Control Price Point in GU

Attached is the chart now which shows price retracing to control price point (5956) and then rushing up again by 35 pips so far....35 pips earned with 0 DD !!