I could truly write a book about this chart, but I will spare those who are only concerned about the next 5 minutes.
Suffice to say that this current bull run in pepsi stock as opposed to coke is quite long in the tooth( average is 41 months as per my notes) and is bumping up against the upper black trend line. If we get a reversal bar at this current trend line, then I would expect a pullback to the lower black line. If we continue on to the convergence of the 2 red trend lines, I would short pepsi and buy coke at the then current ratio without a reversal on the renko chart.
Always trade with the trend except when you don't, and in that case, keep very tight stops.
REMEMBER: The only thing wrong about having been wrong is when you refuse to admit that you were wrong.
Suffice to say that this current bull run in pepsi stock as opposed to coke is quite long in the tooth( average is 41 months as per my notes) and is bumping up against the upper black trend line. If we get a reversal bar at this current trend line, then I would expect a pullback to the lower black line. If we continue on to the convergence of the 2 red trend lines, I would short pepsi and buy coke at the then current ratio without a reversal on the renko chart.
Always trade with the trend except when you don't, and in that case, keep very tight stops.
REMEMBER: The only thing wrong about having been wrong is when you refuse to admit that you were wrong.