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
Two-Back Patterns
by PRASHANT SHAH -
Two-Back Pattern When a trend resumes after a small correction, it indicates that the underlying trend is strong and thus provides an opportunity to initiate a trade with an affordable risk. Two-back is a pattern where a swing breakout occurs after a correction of just two bricks. Below chart illustrates a bullish two-back pattern. As ... Read more
Anchor Bricks
by PRASHANT SHAH -
A series of consecutive bullish or bearish bricks is called anchor bricks. It is difficult to define the number of bricks for such a series, because it depends on the brick value being used. The general rule of thumb is that there should be a relatively high number of bricks in one direction. For the ... Read more
One-Back Pattern
by PRASHANT SHAH -
We’ve discussed that two-brick patterns are swing breakout patterns with a correction of not more than two bricks. Now, what if the correction is just one brick. One-back is a pattern that gets formed when a swing breakout occurs after a correction of one brick. Below chart illustrates a bullish one-back pattern. In the case ... Read more
Zigzag
by PRASHANT SHAH -
Let’s now discuss the zigzag pattern which is a relatively complicated price pattern that gets simplified by using Renko charts. Zigzag is a pattern that shows indecisiveness. We have already discussed how the Renko chart reamins static if the price consolidates for many days without any significant move. If, however, the price action triggers plotting ... Read more
