SPDR S&P 500 (SPY)

[learningboutinv]

Gleno,

The only problem that I see with renko is that it's slightly lagging. But it keeps you in the trend and renko is also great in determining the current trend. Putting certain indicators on Renko can make it lag even more so I would advise against it and just trade the bricks aka price. For example, look at the MACD on the QLD Candlestick chart. It has crossed up. However, it has not yet done so on the renko. The way I trade renko is I try to gauge an entry of where I think the renko may print a white brick. Ie- right now it looks like it may print a white brick on QLD and I go in 1/4 or 1/3 position. Qld just has to close above 73.50. Once the brick is printed, and a second brick forms then I add more to my position on any pullback.

$NDX - Notice the MACD cross, the full stock and the higher OBV which started to occur around 7/15.



If you look at the daily renko chart. QLD hasn't printed a white brick yet if you use 1.75 or even 1.5 pts. So renko slightly lags but keeps you in the correct direction of the trade. If you add a 7ma and also MACD and wait for both to cross on the Renko charts it will take even longer and you may have missed a significant % move.

I hope that makes sense and Lefty, feel free to chime in.