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Trading Using Control Bars

  • #41
  • Jul 15, 2011 8:16am Jul 15, 2011 8:16am
Quoting MikiMax
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

i will try and explain more over the weekend and next week
  • #42
  • Edited 8:47am Jul 15, 2011 8:23am | Edited 8:47am
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?
cause bar A and B are one climatic action bar= a WRB bar on 15 mtf
  • #43
  • Jul 15, 2011 10:05am Jul 15, 2011 10:05am
Quoting kamise
cause bar A and B are one climatic action bar= a WRB bar on 15 mtf
would be nice if u can explain with a chart....wouldnt it?
  • #44
  • Jul 15, 2011 10:36am Jul 15, 2011 10:36am
Ok sir, hope these pics help .
Attached Image(s) (click to enlarge)
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  • #45
  • Jul 15, 2011 11:03am Jul 15, 2011 11:03am
Quoting kamise
Ok sir, hope these pics help .

i believe i can see atleast a couple more such bars...so why would u choose this specific bar as WRB?
  • #46
  • Jul 15, 2011 4:08pm Jul 15, 2011 4:08pm
Quoting ns_karthik
i believe i can see atleast a couple more such bars...so why would u choose this specific bar as WRB?
Cause it is the widest range body bar among them.but from my point of view the *real* WRB bar is as follows.
It is very hard to identify this kind of bar with smaller tf.
Attached Image (click to enlarge)
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  • #47
  • Jul 16, 2011 6:19pm Jul 16, 2011 6:19pm
Quoting kamise
Cause it is the widest range body bar among them.but from my point of view the *real* WRB bar is as follows.
It is very hard to identify this kind of bar with smaller tf.
Respectfully, we are here to look at NSK's Control Bar strategy. Could you please put your WRB into your own thread? I would follow it.

I think this is a box breakout strategy but the key to the Control Bar is the control bar. Havent worked it out yet but all will be revealed. Nice thread.
  • #48
  • Jul 16, 2011 6:41pm Jul 16, 2011 6:41pm
Thanks for starting this thread.

This is my interpretation of your strategy. You look back in the chart to find the Control Bar, which is usually a breakout bar (possibly in association with pivot points, Murray Math Lines, whatever (you havent said.... yet). You then trade the resulting bounce, retest and leave half for another possible breakout. Thats understandable and a good use of available data.

These are just ideas which you may have already answered, but have you done a study on timing of Control Bars? For instance do the best CBs occur at start/end of London, New York, Tokyo? Are solid CBs found at the start of certain H1 candles (or 4H candles)?

Similarly, have you studied how CBs behave around PriceAction points. For instance Murray Math lines, SweetSpots and Pivots.

If you have studied grateful your response when you are able. Thanks again.
  • #49
  • Jul 16, 2011 7:25pm Jul 16, 2011 7:25pm
Quoting ns_karthik
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...


yes, but how do you identify a control bar as opposed to any other bar ? what is the qualifying criteria for it to be a control bar/...?
  • #50
  • Edited 8:03pm Jul 16, 2011 8:02pm | Edited 8:03pm
Isn't this just an inside bar outside bar trading strategy, master candle stuff and what not with some letters thrown in representing support and resistance? Hope it works out, but I see the same thing, am I wrong?
Thanks
Never been vouched
  • #51
  • Jul 17, 2011 12:24am Jul 17, 2011 12:24am
pl explain how to identify a controll bar
  • #52
  • Jul 17, 2011 1:16am Jul 17, 2011 1:16am
Quoting ns_karthik
Control Price points are calculated based on the high/low and close of specific bars...

So..How it is calculated and where is an indicator?
The Market pays you to be disciplined
  • #53
  • Edited 4:21am Jul 17, 2011 4:20am | Edited 4:21am
Very interesting, thank you for sharing. My problem with these bars on lower timeframes such as 5m or 15 m is that often not just 1 bar, but 2 or 3 consecutive bars act as decisive high volume bars ( breaking a previous support or resistance ).

I would be grateful for further explanation on how to detect them. So far, my basic layman´s understanding of volume ( VSA ) seems to point to them quite nicely, but how do you filter them ?

I hope that everyone gives you a fair and decent chance to express yourself without much interruption. Then a basic pdf on post #1 for people new to this thread would be great. Just an idea.

Again, thanks for all you are sharing from your vast experience !


__________
michael
Be like water.
  • #54
  • Jul 17, 2011 9:42pm Jul 17, 2011 9:42pm
been a bit sick over the past couple of days....need to catch up with FF/twitter/blog...
  • #55
  • Jul 17, 2011 11:09pm Jul 17, 2011 11:09pm
I have been working on the control bars for more than 6 months or so. So far, i have been analyzing, re-analyzing etc etc. and have worked on trading strategies aligned with the control bars and other various aspects of it. So far, it has remained purely my work which i have not shared with anyone nor have i felt the need to see if anyone else has worked on it.

It is only for the last 2 weeks or so that i have put it open into the public forum. To be honest, the response has been much bigger than i had anticipated. My blog used to get about 20 visits per article but it has now been getting more than 300 visits per day over the last few days. They say that with great power comes great responsibility as well.

Putting this into the public forum has given me a lot of power to take this, discuss and teach a lot of people. But i also have the responsibility to ensure that i give out the right information only. Till the time when the control bars were analysed only by me, i wasnt answerable to anyone. I could analyse, trade, make mistakes, commit errors etc and still get away with it. But now that i have thrown it open to the public, i need to be more careful in what i say and how i say it.

The first few posts may not have had a great cohesion for a lot of people and i can see that many are yet to grasp the basics. This is my problem as i just put up all the stuff which i had gathered in my mind without trying to either categorize or structure my thoughts.

Now that there are so many people looking into this, i will ensure that i post things in a more structured manner. I am not one of the so-called analyst who comes into twitter/blogging etc. with a specific agenda in mind. I am a trader and what i have posted so far as just what i see/do on a daily basis. This is the reason for the lack of structure so far.

Anyway, from today, i will try and start explaining things in a better manner. Lets start with the 1H charts as the PA in those charts are slow enough for me to explain things. Control bars work on 5M and 15M as well but the PA is sometimes so that i dont have the time to explain things as it happens.

I will post more charts/examples as we move along.
  • #56
  • Jul 17, 2011 11:56pm Jul 17, 2011 11:56pm
Ok, lets start with the question that is uppermost on everyone's minds. What are control bars? I have a specialised algorithm which calculates the bar to me but as i said, that wouldnt work out when i throw it open to the public forum. Not all people can use this algo and i cannot expect everyone to depend on me for the bars.

So, lets try and come up with a good universal definition for control bars. In my mind, its quite simple to find good control bars. Just open up your chart and choose the bar which has the highest volatility, in other words, the biggest bar. This is a good control bar for everyone to work with.

I can give so many definitions for it but that will only add to the confusion. A simple definition is a bar on your chart which has the biggest size. Simple..I have attached a chart of EURGBP and you can see that i have marked a bar, which is a control bar in my view, as A. It is the biggest bar in my chart and as you can see, it acts as a fantastic control bar as it keeps price within it and once there is a break outside this bar, you can see that there is a good breakout and also the high and low of this bar then starts acting as support/resistance.

I have taken a short using the low of the bar as the resistance. It has less SL and the idea is to take off half of the position at 1:1 and leave the rest for 3:1 or 4:1 trade.
Attached Image (click to enlarge)
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  • #57
  • Jul 18, 2011 12:22am Jul 18, 2011 12:22am
Quoting ns_karthik
Ok, lets start with the question that is uppermost on everyone's minds. What are control bars? I have a specialised algorithm which calculates the bar to me but as i said, that wouldnt work out when i throw it open to the public forum. Not all people can use this algo and i cannot expect everyone to depend on me for the bars.

So, lets try and come up with a good universal definition for control bars. In my mind, its quite simple to find good control bars. Just open up your chart and choose the bar which has the highest volatility, in other...
finally in short is a bar which has extreme spread on it h-l that the system i use too thanx alot for clarifying this
  • #58
  • Jul 18, 2011 12:27am Jul 18, 2011 12:27am
Quoting fxrambo
finally in short is a bar which has extreme spread on it h-l that the system i use too thanx alot for clarifying this
yes thats the easy way to approach this...
  • #59
  • Jul 18, 2011 12:37am Jul 18, 2011 12:37am
Quoting ns_karthik
yes thats the easy way to approach this...
Thanks for the explanation. How do you filter the bars? --because otherwise it seems like a control bar is just the same as a wide range bar.
  • #60
  • Jul 18, 2011 1:24am Jul 18, 2011 1:24am
The good thing about these kind of bars : ranges and directionless trading areas start to make sense.

1. Without watching control bars : ranges and retests look like noise.

2. With control bars or wide range bars : we observe price in the high/low range, and act only after retests or breakouts to either side.

This looks good. Thanks, Hopefully some more examples once you feel better.


__________
michael
Be like water.
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