I placed support and resistance lines based on rejections and bounces. Look at how they matched up to the volume profile. I just started reading on Renko charts today, but to put it simple:
Renko does not chart out every single unit of time hence why you dont see much squares on the chart despite being a daily chart; it is more reliant on price movement. A new square will develop if there is significant price movement, this makes it easier to track the actual movement/sentiment of the price. Im still experimenting but i found it great since it clears out alot of noise; a very good attribute to have in this market.
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Full on japanese here:
Added the ichimoku; using this chart is showing heavy resistance at the 6800 level. Lagging span is below price which indicates weakness, we are also under the cloud and below both moving averages. My guess is we will test the blue average and resistance level at 6800.
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Worse case, we dont follow through with the square and drop down back to 5900 or lower after support retest.
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Only thing we got going for us is the cross over of the MAs taking place at the moment. Could be a fake out.
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Correction: No positive crossover at this moment. Full on weak.
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Just for clarity: I have not messed with the settings, they are all default. ATR is set at 14. I will study up on the settings and present a different chart when im feeling confident. This is looking like a great way to trade. :) Enjoy and have fun!
So the basic settings go like this: You can set the Renko chart to paint a square two ways:
ATR (average true range) -- means if the average between the high and the low of the day is greater than what you set, it will paint a square.
Traditional -- paints a square based on a dollar amount you set. For example: Every 10 dollars of price movement, it will paint a square.
It does all of this independent of time. In other words if the price never moves outside of your parameters, you may have what looks like an incomplete chart. The image below shows ATR set at default 14 and 100.
rickyricardo531
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LOL realized i updated on the comments. Anyway, want to correct what I said on the ATR, I misspoke. ATR does calculate the high/low, but not dependent on they day, just the current price.
ATR (average true range) -- means if the average between the high and the low of the day is greater than what you set, it will paint a square.
Traditional -- paints a square based on a dollar amount you set. For example: Every 10 dollars of price movement, it will paint a square.
It does all of this independent of time. In other words if the price never moves outside of your parameters, you may have what looks like an incomplete chart. The image below shows ATR set at default 14 and 100.