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Trading Using Control Bars

  • #21
  • Jul 15, 2011 3:36am Jul 15, 2011 3:36am
Quoting ShoppingGuy
Thanks for your strategy. Do you realise that you have not told us anything? Your charts are just charts with an A, B, C.... printed. But what is the strategy? Is it that we wait for you to print an A, B, C...on a chart and then you tell us what that means and that we missed some trade? Its not possible to comment on blank charts. Maybe you should do your magic on the latest EU chart and show us how good your system is in an few hours?

well i was about to explain that.....just give me some time...
  • #22
  • Jul 15, 2011 3:37am Jul 15, 2011 3:37am
Quoting Astroman
It is not a waste a time even if no one gets anything out of it.

You have a belief, at the risk of ridicule and hate you still put them down in black and white for all to see.

Why people should throw hate your way for just stating your opinion/beliefs is beyond me. It is not like you are trying to sell anything or something.

I am going to read the whole thing over this weekend so I can actually concentrate on what you are saying and then if I have any comments or questions I will ask.

Knowing full well that you will more than likely face ridicule...
thanks astro for ur encouraging posts....hope that will be enough tonic for me to keep this thread going...
  • #23
  • Jul 15, 2011 3:40am Jul 15, 2011 3:40am
Attached is a chart where i have marked off the control price points f (all these price points were mentioned in my articles, so i am not stating anything after the fact). The price point mentioned at that time for GU was 1.5930....Look at points A and B and you can see that price retraced exactly to that line. If you had taken a short there, you would be up by 100 pips now. And your DD? less than 10 pips. So your reward:risk is 10:1

later, i had mentioned the control price point as 1.5900 and 1.5880. 1.5900 was not revisited but 1.5880 was indeed revisited, a short there and you would have been up by 50 pips now. DD? again, less than 10 pips. So your reward:risk is 5:1.

Mark off the control price points in your charts (these are just highs and lows of the control bars) and trade between the price points or if its broken, wait patiently for price to retrace and then take a long/short with small SL.

Of course, this would not work 100% but with reward:risk of 10:1 and 5:1, you would make a lot of money with 80% chance of success, which this system has.

You can trade this better by taking half off once u are up by 30-40 pips and trail the rest so that you can make full use. If you had shorted at 1.5930 and held on to half the position and again shorted at 1.5880, you would effectively have 150 pips in the bag !!
Attached Image (click to enlarge)
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  • #24
  • Jul 15, 2011 3:47am Jul 15, 2011 3:47am
Quoting ns_karthik
thanks astro for ur encouraging posts....hope that will be enough tonic for me to keep this thread going...

Keep it going.

I will read the entire thread this weekend.

Multi-tasking is not a strong point for an old fart like me.

  • #25
  • Jul 15, 2011 4:00am Jul 15, 2011 4:00am
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...
Attached Image (click to enlarge)
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  • #26
  • Jul 15, 2011 4:19am Jul 15, 2011 4:19am
Quoting ns_karthik
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...
it looks good sir it seems prices ranges on some bars then the break out tells all.i hope to see more charts and thnx so much is similar to wat hav been trading
  • #27
  • Jul 15, 2011 5:01am Jul 15, 2011 5:01am
thanks for the new approach.
  • #28
  • Jul 15, 2011 5:28am Jul 15, 2011 5:28am
Quoting fxpatt
thanks for the new approach.
I agree.

Whether right or wrong, I like to hear ideas from free thinking people.
  • #29
  • Jul 15, 2011 5:33am Jul 15, 2011 5:33am
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.
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  • #30
  • Jul 15, 2011 6:54am Jul 15, 2011 6:54am
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?
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  • #31
  • Jul 15, 2011 7:19am Jul 15, 2011 7:19am
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.
Attached Image (click to enlarge)
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  • #32
  • Jul 15, 2011 7:31am Jul 15, 2011 7:31am
it is WRB
  • #33
  • Jul 15, 2011 7:34am Jul 15, 2011 7:34am
Quoting kamise
it is WRB
well it isnt....sometimes this control bar and WRB coincide but not always...does bar B look like a WRB?
  • #34
  • Jul 15, 2011 7:47am Jul 15, 2011 7:47am
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.....
Attached Image(s) (click to enlarge)
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  • #35
  • Jul 15, 2011 7:52am Jul 15, 2011 7:52am
new control bar formed on GU 5M....low is 6100....
  • #36
  • Jul 15, 2011 7:53am Jul 15, 2011 7:53am
Quoting ns_karthik
well it isnt....sometimes this control bar and WRB coincide but not always...does bar B look like a WRB?
Yes..but I always respect your efforts and new approaches
  • #37
  • Jul 15, 2011 7:55am Jul 15, 2011 7:55am
Quoting kamise
Yes..but I always respect your efforts and new approaches

well, i have read abt WRBs and by my understanding bar B is not a WRB. bar A might qualify but surely not bar B. Can you tell me why bar B is a WRB?
  • #38
  • Jul 15, 2011 8:02am Jul 15, 2011 8:02am
Quoting ns_karthik
well, i have read abt WRBs and by my understanding bar B is not a WRB. bar A might qualify but surely not bar B. Can you tell me why bar B is a WRB?
could you tell me what is the WRB pls ?
Mind is the King
  • #39
  • Jul 15, 2011 8:04am Jul 15, 2011 8:04am
Quoting MikiMax
could you tell me what is the WRB pls ?
WRB is short for wide range body...these are candle sticks which have long thick bodies....that is WRB in a broad sense but its a separate study in itself...
  • #40
  • Jul 15, 2011 8:09am Jul 15, 2011 8:09am
Quoting ns_karthik
WRB is short for wide range body...these are candle sticks which have long thick bodies....that is WRB in a broad sense but its a separate study in itself...
Thanks
I like your approach at the first glance, but am not yet sure how to trade it correctly...
maybe a short video with live examples would help
I'd really appreciate it, as the strategy seems to be a good one
Mind is the King
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