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
Principle of Polarity
by PRASHANT SHAH -
The polarity principle is a very popular concept in technical analysis. The phenomenon of a prior support turning into resistance when broken — and vice versa — is the essence of the polarity principle. Polarity is applicable on Renko charts, too. The polarity principle provides an effective pull back trading method and Renko brick reversal ... Read more
Retracement Pullback Zone
by PRASHANT SHAH -
Fibonacci is a popular theory for retracements. We discussed Fibonacci ratios in Chapter 1. There are multiple theories to calculate retracement. Retracement ratio varies from 25% to 66%. We can refer to retracements between 25% and 66% as a retracement zone. It’s important to remember that there has to be a significant trend to start ... Read more
123 Pullback Pattern
by PRASHANT SHAH -
Bullish 123 Pullback During an uptrend, if the price retraces below the previous bullish swing breakout zone and then forms a reversal, it is a bullish 123 pullback pattern (see below chart). Bullish 123 pullback pattern: 1 — Bullish swing breakout at Point B is followed by at least three bullish bricks; 2 — A ... Read more
