Renko charts are helpful to clear out the market noise and look at the price action in a smooth way. We see a head and shoulders top forming, this can give us a good probability to think that if we break lower than recent lows around 1820, then we are going considerably lower. A bear market will be in place. You can just trade the break in the long term Any opportunities to short from the upper blue line give great risk:reward ratio even if the lower blue line (H&S neckline) doesn't break. Shorting a break of the lower blue line is also possible, but perhaps more prudent to wait for price to retrace and retest the line as support and then either enter or add to short positions.
You can more or less see this shape with normal candles on a weekly resolution. It's just more skewed, but you can pick out the same areas of S/R, and even draw a more slanted neckline (which is traditional) for the H&S. There's a few points of solid support on any attempt to break 1820 so obviously bear those in mind as entries and exits when trading short in the near future. Really to be taking any serious long positions, I want to see us break above 1980 convincingly. Here's a look at it with some normal candles and some extra S/R drawn on (Red) and the Neckline (Yellow)
You can more or less see this shape with normal candles on a weekly resolution. It's just more skewed, but you can pick out the same areas of S/R, and even draw a more slanted neckline (which is traditional) for the H&S. There's a few points of solid support on any attempt to break 1820 so obviously bear those in mind as entries and exits when trading short in the near future. Really to be taking any serious long positions, I want to see us break above 1980 convincingly. Here's a look at it with some normal candles and some extra S/R drawn on (Red) and the Neckline (Yellow)