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Rank: Newbie
Joined: 11/2/2008
Posts: 7
Location: SC
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http://stockcharts.com/h-sc/ui?s=$SPX&p=15&b=5&g=0&id=p64423532689&a=148382908 On volatile days often the best system is a simple crossover. This is a system that has been used effectively using a simple 7ema crossover of the 18ema on a 15min Renko chart available at stockcharts of the SPX. Your trading vehcle is the SPY. Chart from this past Friday, fairly typical. Does a nice job of keeping you in a trade. As you can see, stops will be about .60 so position size accordingly. The 30min chart works well also, especially for multiple day trades, stops will be a little larger however. Good trading racer
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Rank: Advanced Member
Joined: 8/14/2008
Posts: 314
Location: Memphis
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racer,
What an interesting looking chart! I've never seen a "Renko" chart before.
I found out how to get one, and I'll be looking into this kind of chart more.
I see what you're trying to get at here.
This is for longer type trades that follow the trend, and the moving average crossovers are your buy and sell signals?
But it looks to me like the MA crossovers are a bit lagging.
Wouldn't it be better to use the Parabolic SAR as a faster way to see the trend change?
I tried to get your chart to post in this message, and for some strange reason it won't show up no matter what I do...hmmmmmm...
Happy Trading,
zz
 www.stock-market-lessons.com
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Rank: Newbie
Joined: 11/2/2008
Posts: 7
Location: SC
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They are a bit lagging by design. The problem with using the SAR is that because of the 15min candle I suppose, you get a lot of false readings w/o the 18 if you just use the 7ema and SAR. Now on 30min they work fine, but with the 15min you'll get a lot of false readings. Keep it open one day on the 60sec refresh and you'll see what I mean. Of course on a day like today, can get chopped up some either way.
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Rank: Advanced Member
Joined: 6/22/2008
Posts: 51
Location: Santa Clara
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Racer,ZZ Can one of you help us understand how to read this Renko chart? What do these 2 blue lines repesent? A possible breakout? That is too dramatic for a breakout.
netbacker attached the following image(s):
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Rank: Member
Joined: 8/13/2008
Posts: 19
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netbacker
Is that interactive Renko chart available on the basic membership to stockcharts, or do you have to have the upgrade?
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Rank: Advanced Member
Joined: 6/22/2008
Posts: 51
Location: Santa Clara
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Duke, I believe it is available w/o membership too as I don't have one at stockcharts.com
Here's the link
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Rank: Member
Joined: 8/13/2008
Posts: 19
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Thanks netbacker, I was thinking I needed the membership to get the 15 minute interval, but it was the box size I was really looking for. Thanks again.
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Rank: Newbie
Joined: 11/2/2008
Posts: 7
Location: SC
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Sorry for the delay in getting back to you guys, have been out of town for past week and just catching up.
Netbacker, if you're talking about 2 vertical lines on right side of chart, have no idea where they came from. Not on original I posted.
Duke, I have the in between memembership called the Extra, costs about $20/mo. Stockcharts is good to use if you do a lot of posting because easy to copy and they also have a lot of charts that typical brokers don't have, for example ratio charts and these renko.
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