RENKO CHARTS

[leftyg]

learning..I think it wise to learn from any more recent market action (as well as the historical, of course). For those of us trading indexes using daily renkos...and taking into account the increased volatility swings intraday..it seems like the weekly chart smooths the whipsaws, and yet captures the primary trend.

For instance..on a given Monday, the index (2X) jumps up 2%..the next day there is a 3% drop..Wednesday, there is a jump of 6%..Thursday is up 2%..Friday is a drop of 4%.

The net effect is a rise for the week of 3%..but the daily has probably given a whipsaw brick..less likely for the weekly. Yet, when the weekly trend is established, it probably is more likely to be a trend, and not a whipsaw.

I am looking at a brick size of 1.5 on MVV, using that size on both the daily and weekly. Comments welcomed.

http://stockcharts.com/h-sc/ui?s=MVV&p=W&yr=1&mn=0&dy=0&id=p09699286921&a=145237717&listNum=1