I'm trashing Semibizz's work

Or maybe not. Just an experiment really in re-application of Semi's principles using Renko. See what you think.

I like how Renko charts can incrementalize prices and snip out small price ranges with high volume concentrations. Thus the volume is confined to a price range (horizontal accumulation) rather than a given candlestick (vertical accumulation). I've isolated the highest of two such ranges here.

BTW, I entered a box size of 1.68 for $SPX because the channel I'm defining for this uptrend is accumulating an average of 1.68 points per day. Oddly, that entry into a Renko chart sizes the boxes as 3.45. Can someone explain how this works?

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&st=2008-03-07&i=p08087379954&a=139024882&r=6304.png

I don't know much about Renko. And since my tools work for me pretty well, I'm lazy to learn. I'm not interested in a RANGE, I try and determine an exact POINT, wherever I can. (via Price, Time, Volume) Accumulation POINT. Distribution POINT. to determine where the MONSTERS (Big Money Players) have their BUYS, SELLS, and STOPS. A range is too gray for me, I need black and white.

I don't know much about Renko.

And since my tools work for me pretty well, I'm lazy to learn.

I'm not interested in a RANGE, I try and determine an exact POINT, wherever I can.

(via Price, Time, Volume)

Accumulation POINT. Distribution POINT.

to determine where the MONSTERS (Big Money Players) have their BUYS, SELLS, and STOPS.

A range is too gray for me, I need black and white.

See, I told you I was trashing your work . But it's nevertheless interesting to me to see what, if any, S/R effect there would be on price for "consolidative" volume. I don't see that type of volume really accounted for in TA. This is just a weekend experiment.

[ Re box size, did you change spec from ATR to Price? Renko is a new SC option. I have detected several bugs in the tool so far, and I've asked RogerDodger to comment. Inquiry placed indirectly with SC too. One is that for me, various ATR settings don't alter box size. Two, I've seen where boxes are sometimes missing at the lows. Ie, the actual swing low is more than one full box below the Renko labeled low. See my post to RD from Friday AM for an example wrt CCJ. I've found numerous cases, but it doesn't happen every time. P

[ Re box size, did you change spec from ATR to Price?

Renko is a new SC option. I have detected several bugs in the tool so far, and I've asked RogerDodger to comment. Inquiry placed indirectly with SC too.

One is that for me, various ATR settings don't alter box size.
Two, I've seen where boxes are sometimes missing at the lows. Ie, the actual swing low is more than one full box below the Renko labeled low. See my post to RD from Friday AM for an example wrt CCJ. I've found numerous cases, but it doesn't happen every time.

P

I did change the box to price from ATR. And it is pretty "buggy" still. But I'm looking into applications for it nevertheless.

[ Re box size, did you change spec from ATR to Price?

Renko is a new SC option. I have detected several bugs in the tool so far, and I've asked RogerDodger to comment. Inquiry placed indirectly with SC too.

One is that for me, various ATR settings don't alter box size.
Two, I've seen where boxes are sometimes missing at the lows. Ie, the actual swing low is more than one full box below the Renko labeled low. See my post to RD from Friday AM for an example wrt CCJ. I've found numerous cases, but it doesn't happen every time.

P

I did change the box to price from ATR. And it is pretty "buggy" still. But I'm looking into applications for it nevertheless.

I don't quite know what's going on at SC with this charting. Every time I try to apply a saved chart style with my own personal renko setting, it reverts to ATR 14. I can manually change that on each chart to a different setting but styles don't seem to cross over from on chart to the next. Hopefully, they'll get it worked out. I also see users at Trade Station have been asking in forumes to have renko charting incorporated into TS. TS claims to be looking into it and may have it in future releases (heard that before).

Besides, I'm having a hard time getting my head around this kind of charting.

But what really bothers me about renko charting is that it looks too good to be true.

This renko charting looks as if it has the potential to make everything else irrelevant . This looks as simple as it gets -- just buy when the box turns white and sell or sell short when it turns red. No more wacky wave counting, no more looking for volume and price spikes, no more fundamentals. Might be able to keep trend lines, and overbought/oversold and support/resistance but who cares? Volume studies, these renko boxes don't care about no stinking volume studies. Forget black and white and gray. Just buy white, sell red. Everyone always seems to want to over complicate (I once had 14 indicators to tell me if the price was going up or down and it took me years to just look at the price chart). darn, what are we going to do with our time? Where's the fun in this? Just buy when the box turns white and sell or sell short when it turns red. Boring!

Follow this red-and-white brick road and before long one might have to find fun elsewhere -- like buying a Gulfstream V to go to Pebble for a round before returning home for dinner. White bricks, red bricks -- hell, why not buy Pebble? or Monterrey County? or CALIFORNIA?! Talk about diversification! Wait a second -- won't need no stinking diversification either!

What a nightmare! ...Fortunately, it's obviously too good to be true.... Obviously...



Obviously:


http://stockcharts.c...0140&r=9620.png

http://stockcharts.c...0127&r=5994.png

http://stockcharts.c...0126&r=3107.png

It is just a better way to view a P&F chart. Like all charting, each serves a purpose. Each has a pluse and minus depending on what you are trading and when. mss

It is just a better way to view a P&F chart. Like all charting, each serves a purpose.
Each has a pluse and minus depending on what you are trading and when.
mss

True. I think it's better because you can (theoretically) segregate volume for each "X" (positive) and "O" (negative), due to the diagonal stacking. From the appearance of the volume on my Renko chart, hpwever, it's obvious that the volume function is yet another SC bug that needs to be corrected by SC. I must say that my chart is for demonstration purposes only... I don't trust the beta version at all. But you can at least see some imaginiative possibilities fot the SC Renko chart if/when they get it functioning properly.

On Renko, those volume spikes do not necessarily mean increased activity. Rather, they can indicate that we have been hanging out in the trading range represented by the brick, i.e., consolidating, and the volume is just adding up for that range (brick). Typically, there is a move after a consolidation (by definition) so one would expect a Renko volume "spike" to associate with a leg change.

Edited by selecto, 12 May 2008 - 10:45 AM.

On Renko, those volume spikes do not necessarily mean increased activity. Rather, they can indicate that we have been hanging out in the trading range represented by the brick, i.e., consolidating, and the volume is just adding up for that range (brick).

Typically, there is a move after a consolidation (by definition) so one would expect a Renko volume "spike" to associate with a leg change.

Thanks, Mr. Selecto. That helps to clarify the idea.