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
Fundamental analysis
by PRASHANT SHAH -
I am a firm believer in fundamental analysis. One should study valuations and invest only in companies which have a strong management and a distinctive competitive advantage. But it is very difficult for Individuals to keep track of macro- and micro-environments on a frequent basis. Price setups are often a lead indicator and help identify ... Read more
Position Sizing
by PRASHANT SHAH -
Position sizing is a key determinant of the returns returns that a trader can generate on his capital. Position sizing is nothing but a logical way to determine how many shares or how many contracts of an instrument should a trader buy or sell in each trade; in other words, what is the correct size ... Read more
Learn from Abhimanyu
by PRASHANT SHAH -
Let’s now consider four charts of the same instrument. Take a pause after every chart and answer the question posed. 1% brick value daily Renko chart of Vakrangee The above chart shows a strong trend line breakout and the price is moving in a strong uptrend. But it has already moved quite a bit. Would ... Read more
