Does this Chart mean Anything?
Started by
Islander
, Apr 11 2010 07:04 PM
10 replies to this topic
#2
diogenes227
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Posted 11 April 2010 - 07:36 PM
It means the SPX is going up until one of those red bricks appears and then it will be going down until a white brick appears and then it will be going up and so on and so on... It's that simple.
Congrats! You just posted the key to the kingdom. You can buy your private jet any time now and order up a French super-model mistress (I hear their first-lady might be available some time soon), and buy...Virginia or Texas or any state you might want (just tell everyone there's a new landlord in town and they need to move), but you better delete this post immediately before anyone else sees it or you're going to have a lot of competition for all of the foregoing.
Renko charts -- I'm surprised the Japanese haven't bought the entire world by now (or maybe they have?)
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."
#3
Islander
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Posted 11 April 2010 - 08:15 PM
Thank, I suspected it was worth more than it appeared to be.
#4
arbman
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Posted 11 April 2010 - 08:58 PM
On Monday, we will see a new brick UP with the open above 1200, interesting to note. It is also interesting to note that the reversal around 1100 did not hold last January as they did previously at least for a brick to the downside around 1100. However, 1220-1230 is an important resistance zone and if the index reverses before going above 1240s and closes below 1150 next, the next brick will be a red one projecting back to 1100 for the following brick!
#5
atlasshrugged
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Posted 11 April 2010 - 10:00 PM
why isnt it showing bricks down to 666 in march of2008??????
#6
arbman
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Posted 11 April 2010 - 10:47 PM
why isnt it showing bricks down to 666 in march of2008??????
The lowest monthly close was 735, this indicator only works with the closing values and this is a monthly chart.
#7
Darris
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Posted 11 April 2010 - 11:41 PM
Also odd that the chart shows a white brick in May 2008 when you use a closing date of this past Friday, but if you use a closing date of March 31st 2010, the white brick for May 2008 does not appear. Must recalculate all bricks based on the last ATR (1) value for the given month. Not sure how that helps with back testing when the present month ATR is what determines a reversal. I could have it wrong, but that is what I saw. Hummm.....
#8
denro2
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Posted 12 April 2010 - 12:34 AM
To use a logarithmic scale on the vertical price axis is meaningful: equal vertical distances will then be the same percentage gain in price. But I can find no meaning in a log scale on the horizontal time axis: that makes no sense to do that.
#9
relax
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Posted 12 April 2010 - 03:25 AM
To use a logarithmic scale on the vertical price axis is meaningful: equal vertical distances will then be the same percentage gain in price. But I can find no meaning in a log scale on the horizontal time axis: that makes no sense to do that.
denro, maybe it's because volatility varied from month to month
high volatile periods take up more space than low volatile periods, if renko is based on atr
#10
arbman
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Posted 12 April 2010 - 08:28 AM
There is no log scale on the horizontal, it just moves as it adds the new bricks, the dates are simply important dates that managed to add a new brick... Any move that is contained within ATR(1) is not worth noticing for this indicator, however long it happens... This indicator only shows the long term break outs and break downs of monthly charts in a sense... This is not a timing indicator, more like a trending indicator...
