The other day a member asked me to look for some small time
frame GDX renko charts. So I sent him this 15 min Renko chart
that's been working well for the last month or so, and it went on a
sell signal yesterday. I sent him a chart via private
message, but darn it I forget to post it on the blog! so here
it is
GDX - 15 min Renko, 0.30 box size, went on
sells signal yesterday, this one can flip over back and forth
quickly
How can you use both of these?? One idea might be to use the 15
min in conjunction with the daily Renko chart. For example,
let's say that you were long GDX via the daily Renko chart, then
once the 15 min Renko chart went on a sell signal yesterday instead
of shorting GDX, you would only sell your long position and go flat
because the Daily chart was still on a buy.
again just throwing thoughts out there, I don't know if this is
the best strategy or way to use them, just throwing out some ideas
to try
I think I am missing something with the renko charts. On the
daily chart, with a box size of 0.6, and GDX down 1.76 as I type,
shouldn't we see at least 2 bars down at this point ? What would
happen if it exceeds 1.8, 3 bars... It's not the first time I see
such behavior and I cannot explain it yet. Thanks for anyone who
can clarify this one. I have read on renko charts but obviously not
the right articles...
I believe the calculation is off the low of the prior bar so the
GDX closed at 60 even on 12/1 which would make the low 59.40.
So to get two bars the GDX would have to be 1.20 below 59.40 or
pressing below 58.20 which we are very close to but have not yet
breached. Hope that helps. If someone watches the GDX
and refreshed the Renko to check that I would appreciate an update
if I am correct.
I read this article before and did google search on the subject.
This part is of interest:
It's important to note that prices may exceed the top (or bottom)
of the current brick. Again, new bricks are only added when prices
completely "fill" the brick. For example, for a 5-point chart, if
prices rise from 98 to 102, the hollow brick that goes from 95 to
100 is added to the chart BUT the hollow brick that goes from 100
to 105 is NOT DRAWN. The Renko chart will give the impression that
prices stopped at 100.
In our case with a 0.6 box size and now a change of -1.80, I
would expect to see at least 2 boxes to the downside (if not 3) but
the chart still hasn't turned to the downside yet. And it's not a
question of chart updating at night either. I've seen the same
behavior before and the chart was the same the next
morning.
Just saw the reply from Tom. Makes sense. I will check for next
time. Have a good week-end !
GDX renko charts
Posted by matt on 2nd of Dec 2011 at 11:46 am
The other day a member asked me to look for some small time frame GDX renko charts. So I sent him this 15 min Renko chart that's been working well for the last month or so, and it went on a sell signal yesterday. I sent him a chart via private message, but darn it I forget to post it on the blog! so here it is
GDX - 15 min Renko, 0.30 box size, went on sells signal yesterday, this one can flip over back and forth quickly
GDX - daily chart still on a buy signal for now
How can you use both of these?? One idea might be to use the 15 min in conjunction with the daily Renko chart. For example, let's say that you were long GDX via the daily Renko chart, then once the 15 min Renko chart went on a sell signal yesterday instead of shorting GDX, you would only sell your long position and go flat because the Daily chart was still on a buy.
again just throwing thoughts out there, I don't know if this is the best strategy or way to use them, just throwing out some ideas to try
Hi Matt, I think I am
Posted by atlantis on 2nd of Dec 2011 at 03:08 pm
Hi Matt,
I think I am missing something with the renko charts. On the daily chart, with a box size of 0.6, and GDX down 1.76 as I type, shouldn't we see at least 2 bars down at this point ? What would happen if it exceeds 1.8, 3 bars... It's not the first time I see such behavior and I cannot explain it yet. Thanks for anyone who can clarify this one. I have read on renko charts but obviously not the right articles...
Thanks !
Atlantis
I believe the calculation is
Posted by tom on 2nd of Dec 2011 at 03:48 pm
I believe the calculation is off the low of the prior bar so the GDX closed at 60 even on 12/1 which would make the low 59.40. So to get two bars the GDX would have to be 1.20 below 59.40 or pressing below 58.20 which we are very close to but have not yet breached. Hope that helps. If someone watches the GDX and refreshed the Renko to check that I would appreciate an update if I am correct.
looks like we won' get
Posted by tom on 2nd of Dec 2011 at 03:56 pm
looks like we won' get a chance to verify.
Hello Atlantis,try Stockcharts.com writeup on
Posted by matt on 2nd of Dec 2011 at 03:33 pm
Hello Atlantis,try Stockcharts.com writeup on this, perhaps it will list something, and also try a google search
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:renko
Hi Matt, thanks for the
Posted by atlantis on 2nd of Dec 2011 at 03:51 pm
Hi Matt, thanks for the reply.
I read this article before and did google search on the subject. This part is of interest: It's important to note that prices may exceed the top (or bottom) of the current brick. Again, new bricks are only added when prices completely "fill" the brick. For example, for a 5-point chart, if prices rise from 98 to 102, the hollow brick that goes from 95 to 100 is added to the chart BUT the hollow brick that goes from 100 to 105 is NOT DRAWN. The Renko chart will give the impression that prices stopped at 100.
In our case with a 0.6 box size and now a change of -1.80, I would expect to see at least 2 boxes to the downside (if not 3) but the chart still hasn't turned to the downside yet. And it's not a question of chart updating at night either. I've seen the same behavior before and the chart was the same the next morning.
Just saw the reply from Tom. Makes sense. I will check for next time. Have a good week-end !
GDX Swing System
Posted by lsherrer on 2nd of Dec 2011 at 01:41 pm
Am I interpreting the readings correctly on the BPGDM? Are we setting up for a buy signal?