Wednesday, August 19, 2009

Kiss and tell

Here is a continuation of the Daily SPX chart from, A kiss is just a kiss:

Note it will take a move back up over 999 to return this chart to Bullish mode.

About my time frames:

They all work, commensurate with trading styles. I use 30 minutes and under for intraday Scalping, 60 minutes and over for Swing trading and Daily/Weekly for Intermediate Trends which usually govern what side of the smaller time frame charts I trade. Thus, there are multiple "Sell Signal Thresholds" that are discussed here. Needless to say, a Daily-based Sell (as per above chart) is significant.



Unknown said...

Allan,do you sell your swing positions right away when Blue Wave gives you a sell signal on the daily charts?
Thanks,Ron R.

Anonymous said...


I'm loving the trading ideas from this blog.(I plan on studying your older posts like a book!).

I hope to adapt your Renko ideas to my arsenal. I've been following along observing SPX 60min 1pt box size via

The bricks often change colors/position signaling direction change,enough to signal direction change then revert leaving no evidence.

I realize this is a fast time frame and daily/wkly strategies would work smoother.

However, any suggestions on avoiding whip from these quick changes would be most helpful before I adapt this to my trading platform.

Thanks for sharing.

Anonymous said...


You are right the renko ebbs and flos throughout the day. Upon close the trend can become more clear, especially on the weekly. Like Allan says, it sets his side of the trade until the trend changes again. When I was trading sides, I consistently lost money trading against the weekly trend. Up to you what works best, but regardless of the EW count people have, the trend changes when it wants to. I haven't been able to direct attention to weekly trending using renko in less volatile markets. I imagine that there would be little change in my hypothesis. Exp Moving Avg's help in confirmations, because there are situations looking at the historical data that weekly trends consist of a few or more bricks and then it changes again. You might not be fast enough to profit on the original trend change, but this is up to the individual trader. I have learned that bricks come and go during the day and unless you can devote full attention to it, you could find yourself pulling your hair out. Just some advice from someone who looks to build on my renko trading. Take care.

Anonymous said...

Close above 999 or breach it?

Anonymous said...

Where do you stand on NNVC?