RENKO CHARTS

[leftyg]

ron...I read the two posts you referenced. It seems our trading styles are similar. I have used the Q's for years..but recently have become interested in the mid-cap S&P400. That seems to trend a bit better than the Q's..but that may be changing as that index gets more popular.

I use MVV and MZZ as the instruments. Both are 2X the S&P400. Sometimes I use the UWM and TWM funds which are 2X the RUT.

I don't use a lot of indicators..since most are trend following..and only delay the decision to change direction....one can miss 2 or 3 bricks of trend by doing that.

My favorite indicator of a trend change is a reversal of the bricks themselves. That can mean whipsaws...but it gets one into a new trend quickly. I am open to ideas about minimizing whipsaws..and made a couple suggestions in posts to charger about using 1/2 sized positions on a trend change until there is a confirmation. The confirmation could be a second brick, or the next higher time period confirming the trend change...............for example. If one is trading the daily..then take 1/2 position when the daily boxes reverse..then add the other 1/2 when the weekly changes to the same trend.

I will link a chart so you can see the simplicity of the indicators.......the best indicator is price, imo..and the filling of a price box usually means more than indicators in my use.

Regards.

http://stockcharts.com/h-sc/ui?s=UWM&p=D&yr=0&mn=9&dy=0&id=p03887929457&a=138586803&listNum=1