Bibliography
by PRASHANT SHAH -
— Aby, Carroll D. J. Point & Figure Charting: The Complete Guide. Grinville, SC: Traders Press Inc., 1996. — Bollinger, John. Bollinger on Bollinger Bands, New York, NY: McGraw-Hill, 2002. — Bulkowski, Thomas N. Encyclopedia of Chart Patterns. New York, NY: John Wiley & Sos, Inc., 2000. — Carney, Scott M. Harmonic Trading, Volume One: ... Read more
Swing Breakout Patterns
by PRASHANT SHAH -
In the previous chapter we discussed how all the conventional chart patterns are workable and relevant on Renko charts as well. In this chapter, we will discuss patterns that are unique to Renko charts. The formation of bricks is a unique feature of Renko charts which no other chart category possesses. The different combinations of ... Read more
Multi-brick breakout patterns
by PRASHANT SHAH -
Let us now consider multi-brick breakout patterns. We discussed double top and triple top resistance and double bottom and triple bottom support patterns in the earlier chapter. Multiple bricks at the same level represent an area or zone of either support or resistance. When the price breaks out from those important levels, it triggers a ... Read more
Moving Average
by PRASHANT SHAH -
Moving average is the most basic indicator that we use in all types of charts. It can be applied on Renko charts, too. A 20-day moving average on a bar or candlestick chart calculates the average of the latest prices, usually the closing price. Similarly, a moving average of the last 20 Renko chart bricks ... Read more
RSI
by PRASHANT SHAH -
Relative Strength Index (RSI) Developed by J. Welles Wilder, Relative Strength Index (RSI) is perhaps the most popular and widely used of all indicators in technical analysis. It is possible to plot RSI on Renko charts. The formula for its calculation remains the same but the underlying logic differs. Below is the formula of calculating ... Read more
Which Price to use
by PRASHANT SHAH -
There is a practical issue with regard to trading patterns — and breakouts occurring at the end of the day — on closing price basis. This is an issue common to all kinds of charts, not just Renko. A bar or candle gets locked at end of the day but a candle pattern seen during ... Read more
