Selecting Brick-value
by PRASHANT SHAH -
Selecting appropriate Brick-value All trading methods that we have discussed thus far are applicable on all brick values and time frames. Your trading style and trading time frame decide the brick value that you will use. Learning the patterns and other methods of analysis gives one a better understanding of using the appropriate brick value. ... Read more
Brick Values for Long Term Trading
by PRASHANT SHAH -
Brick Values for Long Term Trading Generally speaking, an investment is made keeping a longer time horizon in mind. I recommend tracking 3% to 5% brick value charts on daily time frames for long term horizons, especially for mid cap and small cap stocks. Breakouts from horizontal formations on these charts are a very useful ... Read more
Brick Values for Short Term Trading
by PRASHANT SHAH -
Brick Values for Short Term Trading For shorter term positional trading, I would recommend brick values between 0.25% and 1% on daily time frame charts. Let us study some examples. Below is a daily chart of Yes bank with a 1% brick value. Trend line and extension analysis on a 1% brick value daily Renko ... Read more
Brick Values for Very Short Term Trading
by PRASHANT SHAH -
Very short term trading, such as intraday trading, requires a special skill set. There is so much noise from minute to minute that it is so very easy to get led into overtrading. The best advantage of Renko for very short term trading is that such charts reduce the number of trading signals. For very ... Read more
Index Trading
by PRASHANT SHAH -
A stock and an index are different in terms of their underlying volatility. An index captures the price of many stocks. Typically, stocks can easily see a daily price movement of 5% to 10%, which however is very rare for an index. A stock can get delisted if the company concerned goes bankrupt, but an ... Read more
Options Trading
by PRASHANT SHAH -
Options are a useful derivative instrument and they can be traded using technical analysis without having to understand the Greeks associated with them. Renko charts of options can be plotted and every Renko technique that we have discussed is applicable on them as well. One way to trade options is to form a view on ... Read more
