RENKO CHARTS

[JLS]

The intraday model buy on FAZ yesterday turned out to be just right, not too cold and not too hot. The limit order to sell (at 22% profit level) has just been cancelled and will be re-entered at a higher profit level at the end of the day providing the trend does not look long in the tooth. The theory for putting in limit orders to sell above price at the end of the day is to capture pops in price that often happen at market opens. As the trend becomes older, those (above price) sell orders will be replaced with trailing stop orders. The theory is that this process increases the probability of capturing the majority of the trend. This is a new system, so we'll see.