SPDR S&P 500 (SPY)

[learningboutinv]

Euterpe1,

Sorry for the late reply. Been so busy today didn't really have a chance to look at the markets.

In terms of Renko, it's an Interim term/daily system where there's no indicator expect for price itself. Renko is lagging btw. Anyhow, I use the daily renko charts as an End of Day/market close type system. You can front run it by 15-30mins before the close if it looks like the renko chart is reversing trend and the price will stick at the close.

But, yes, there are possible whippage with renko just as there are with any system. If you take the 1st box reversal, it is always prudent to put a stop 2 boxes below or a certain percentage of what you are comfortable with.

For example on QQQQ, at 33.60, a green CIT (Change in trend) brick was printed. If you enter in around 33.60, put a stop at or slightly below 32 (each box is .80) so a 2box reversal is $1.60 and would be another change in trend back down.

This is a hypothetical example since QQQQ closed up with two green boxes. So a CIT to the downside would now be 32.80. If QQQQ closes at or below 32.80, a new trend has emerged to the downside.

I have been looking at trying to minimize the whippage by confluence of other charts/indicator. If you take a daily candlestick chart of QQQQ and look at the MACD, notice that it has not crossed to the upside so I am a bit weary about this latest renko reversal to the upside.



http://stockcharts.com/h-sc/ui?s=QQQQ&p=D&yr=1&mn=0&dy=0&id=p64854739407