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
High-Low Renko Charts
by PRASHANT SHAH -
It must be obvious by now that Renko charts can be plotted with only one price. Charts plotted with closing prices will generate patterns based on the closing price of the chosen time interval. The high-low method of plotting considers either the high, or the low, price made during the day, as follows: If the ... Read more
Pattern Based Trading
by PRASHANT SHAH -
Renko patterns that we have discussed can help us in analyzing various markets and instruments. A trading approach can also be developed using these patterns. This is known as pattern based trading. Thus, you can take a trade based on a bullish pattern and exit when a bearish formation is formed, or take a short ... Read more
