Get started

Renko

A Renko Strategy for Trading - Part 3This is intended more as educational material on a strategy for using renko charts. To begin with, I'll be using USOil in the examples but will include other markets as I continue through the series. The material is not intended to prescribe or recommend actual trades as the decision to place trades is the responsibility of each individual who trades as they assume all risks for their own positions and accounts. Chart setup: (Part 1) Double Exponential Moving Average (DEMA) 12 black line Double Exponential Moving Average (DEMA) 20 red line Parabolic SAR (PSAR) 0.09/0.09/.23 blue circles Simple Moving Average (MA) 20 blue line (Part 2) Stochastics 5, 3, 3 with boundaries 80/20 dark blue/light blue Stochastics 50, 3, 3 with boundaries 55/45 red Overlay these two on one indicator. Refer to 'Part 2' as to how to do this (Part 3) True Strength Indicator (TSI) 14/4/4 dark blue/ red Directional Movement Indicator DMI 14/14 ADX-dark green, +DI-dark blue, -DI-red
FX:USOIL
by mxb1961
LTC Renko decending wedge shows potential bottom and priceLooking first to the left on this daily extending back, there isn't much left to the imagination on the left side. The real question is whether a higher low here will signal a breakout above the wedge. Whether this happens may depend on how much truth there is in the BTC parabola. It's not shown here, but if memory serves, if we range from this point for a couple of weeks, and if the market behaves as the parabola says it should, the tangent will raise the bottom for all coins regardless. Failing that, this wedge at least provides a view of a long term trend support which, though very low against expectations for this cycle, will likely, for what it's worth, remain unchallenged.
by latticephreak
BTC Daily - Renko, MA (20,50,100,200) & DMIOverall Summary: Overall I am bearish. Bitcoin is trading in the $3600 to $4200 range during the last week, 81.5% down from the ATHs, with a market cap of $63 billion. The chart indicates a continuation/consolidation/reversal of the current X trend. The price is closest to the 50 MA with a trend towards the 50 MA. The volume has decreased over the last week, which is supporting the current price action. During the period the ‘dominant’ DMI switched over and it is now the -DMI and a weak trend strength ADX of 19. Detailed Summary: This chart uses weekly Renko Candlesticks with 4 MAs (20, 50, 100 & 200) & DMI. Renko candlesticks are great for trend trading. Renko means ‘brick’ in Japanese because the candlesticks represents only price movements. Although some price action is missed, Renko makes it very easy to identify key trends and support and resistance areas. This chart style is often used along with Heikin Ashi candlestick charts for greater confluence. As you can see, there is very little ‘noise’ in this style of chart, allowing traders to ignore short term trends. I set the security at $50 per block so that every block represents a $50 price move. During the last week the price has ranged by $500, opening at $4100 and closing at $3600. The price has decreased over the period which is a continuation of the long term price trend. Moving Average are also used on this chart to help identify major areas of S&R and general price trend action. I prefer to use simple Moving Averages on the daily time frame. The 200 MA is red, the 100 MA is orange, the 50 MA is yellow and the 20 MA is green. The choice of colours helps me to read the chart and see if price action is bullish or bearish. For example, if the red is on top and the green is on the bottom, it is clearly bullish. It is also important to note that the longer the Moving Average period, the stronger the support and resistance. During the last week the price is closest to the 50 Moving Average and during this period it has trended towards/around the 50 Moving Average. The 50 Moving Average is currently acting as resistance while there is no MA acting as support. The key Support area is $3300 and key Resistance areas is $4200. I forecast in the next week that price will test the next support area. Volume is a key indicator that I use to understand past, current and possibly future price action. Unfortunately a majority of the exchange volume is fake ‘wash’ trading so it is important to rely on data from reliable exchanges like Binance and BitFinex. Volume that supports price recent action helps strengthen my belief in a specific trend. During this period volume has decreased in convergence with the recent price action. On a longer term time frame, the volume is in convergence with the long term trends. I forecast in the next week that volume will decrease and this will support a decrease of price. DMI (Directional Movement Index) is a popular trend trading momentum indicator that measures Moving Averages and is able to identify trends while ignoring ‘noise’. It is used on combination with other trend indicators to build confidence about price actions and trends. Look for divergence and convergence between these three lines: Green is the +DMI or +DI, represents bullish action, Red is the -DMI or -DI, represent bearish action and Yellow is the ADX , is an average of the above two and sums up the MA trend. At the start of the period, the ‘dominant’ DMI was the + DMI, at 41 while the ADX was at 18. During the period the ‘dominant’ DMI switched over and it is now -DMI and the ADX is 18. This indicates a convergence with the long term price trend and a weak trend. I forecast in the next week that the that ‘dominant’ DMI will increase and this will support a decrease of price. References: Renko summary - www.investopedia.com Moving Average summary - www.investopedia.com Support and Resistance summary - www.investopedia.com Fake exchange volume summary - www.blockchaintransparency.org DMI summary - www.investopedia.com
BITFINEX:BTCUSDShort
by CarbiArbittrage