PROFITABLE TRADING WITH RENKO CHARTS

 Profitable Trading with Renko Charts

One of the oldest and most popular Japanese charting methods, Renko can be

used to profitably trade all types of financial markets and instruments — and

over any time frame.

Renko charts offer traders many unique and unmatched advantages over

other charting methods:

■ Renko charts are simple to use

■ Trends are easier to identify in Renko charts since the price is always

either clearly bullish or bearish

■ Due to their uncluttered appearance, significant tradeable patterns are

much easier to spot in Renko charts

■ Being objective in nature, entry and exit signals are clearly defined in

Renko charts, making it easier to trade profitably

■ By eliminating insignificant price action, Renko charts help traders

control overtrading — one of the biggest sources of trading losses.

This comprehensive book provides step-by-step guidance, from the basics of

Renko charts to advanced methods of analysis and trading, keeping in mind

Indian market characteristics:

■ What a Renko chart is — and how to plot it

■ How to use the traditional tools of technical analysis on Renko charts

■ Thorough description and analysis of major price patterns in Renko, along

with examples and trading rules for each

■ How to use the unique features of Renko charts to identify strong sectors

and strong stocks to trade

■ How to profit from the unique Renko chart indicators

■ How to effectively use Renko charts across multiple time frames

■ Tested and effective trading strategies for all kinds of markets, with rule-

based entry and exit criteria

■ PLUS: 250+ charts and examples from Indian markets.

With recent advancement in technology making Renko easily accessible on

popular charting software, this book will help both experienced and novice

traders to profit from this very powerful system.

Comments

Post a Comment

Popular posts from this blog

LOG BRICK VALUE

Image
In the earlier examples, we discussed the plotting of Renko charts using absolute brick values, such as 5 or 10. Actually, Renko charts can be plotted with any number. But often a chart moves in a wide range which makes defining the brick value difficult. Take, for instance, a stock like Aban Offshore that was trading at 5,000 in January 2008 and subsequently crashed to 300 in March 2009, and then traded below 200 in January 2016. A brick value of 50, when the stock was trading at 5,000, would have represented 1% of the prevailing price. But if the chart were plotted with the same brick value when the price had dropped to 200, the brick value of 50 would represent 25% of the prevailing price. This example illustrates the problem associated with using absolute brick values for Renko charts, especially when studying a long term chart. There are many examples of stocks moving in a wide price range where it would be illogical to use a single brick value to sensibly capture the price action
Read more

RENKO CHARTS

 Renko Charts Renko is a charting method that belongs to the “noiseless” category, i.e. a chart which is free of relatively minor price moves. Apart from Renko, other noiseless charting methods include Point and Figure, Line-break and Kagi. Renko charts have their origins in Japan where they were used during the 19th century. They were introduced to the rest of the world by Steven Nison who discussed this methodology in his book, Beyond Candlesticks. In Japanese, Renko means brick; that is why Renko charts are also known as brick charts. A Renko chart is categorised as noiseless because it eliminates insignificant price action. Also, the Renko chart is a one dimensional chart because its plotting only takes price into account. On the other hand, popular charts, such as bar or candlestick, have two dimensions — price and time. In two dimensional charts, price is plotted on the Y-axis and time on the X-axis. A new price point gets plotted on the chart when the specified time passes by, i
Read more

BRICK VALUE TWO

Image
  The ninth price (see Table 1.4) triggers a reversal from a bearish to a bullish brick as the price moves back above 120. The next bullish brick level is 130, and the subsequent bearish brick level is 100. The eleventh and twelfth prices remain between the bands, so no bricks. The thirteenth price warrants plotting a bullish brick as the price moved above 140. The fourteenth price doesn’t allow plotting. Table 1.4 summarises the status of the plotting thus far, and Figure 1.10 is the resultant Renko chart . If you have followed the logic behind the plotting so far, the rest of the sequence should be easy to comprehend. The remaining price action is illustrated in the chart in Figure 1.11. The chart shown in Figure 1.11 is actually based on real time daily closing prices of Hindalco between 2013 and 2014. Figure 1.12 is the chart showing the same.
Read more