Quick Updates in the Morning

1. Another wild day in late NY and early Asia. Increasingly looks like markets are being highly manipulated.
2. Moody's threatens to downgrade USA and this news came at when market has low volumes, which makes it easy for manipulation.
3. USDJPY and USDCHF fell like a rock but have recovered somewhat.
4. EURUSD went through the roof and ended up at a high of around 1.4280. Looks quite toppy to me.
5. NZDUSD keeps going up and up and this causes AUDNZD to crash.
6. EURGBP seems the only stable pair at this moment.
7. Market stable for now but could turn violent. Stay out if you cant understand whats happening.
   

Control Prices Still in Play

Attached are EU and GU 5M charts with control points marked. As you can see, you could have made a ton of pips trading off these prices. Look how prices have traded exactly through these control points/prices.

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

Control Price Point that could be traded either way

Attached is the 5M chart. Notice how the control price point at 1.5956 worked. It could have been traded either way. There was a break above and retest of the point and then a move above which could have been traded for 30 pips.

Also, notice point B where a break below and a retest takes place. This can be shorted and you could have made 30-40 pips with a DD of less than 5 pips !! Thats the power of these control bars.

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 !!

Controlling prices for EU and GU

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.

Quick Updates in the Morning

1. Big Stop loss run in USDJPY.
2. This led to big run back to the bottom for EURJPY.
3. USDJPY jumped right back up and EURJPY jumped right back up along with it.
4. Sell rallies is the way to go as far as EURUSD is concerned.
5. China seen selling AUDUSD above 1.06
6. Moody's downgraded Ireland to junk status.
7. Large sell orders at 79.80 for USDJPY
8. Expect lot of volatility during the day.