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BUILDING A CHART "BRICK BY BRICK"What is it Renko? Renko charts were invented in Japan, just like regular candlesticks, many years ago and they are called Renga, which means "brick". They display charts symmetrically and are effective for identifying major trends and structural support and resistance levels. Renko charts are very well suited for trend trading as they are visually appealing, making it easy to screen out noise and highlight trends easily. Renko charts show a trend in a way that bars and candlesticks charts cannot. They are able to filter out the noise and create the sameness underlying the trend. In order to understand what a Renko is, let's remember what candlesticks show on our charts? They are the fluctuations in the price of a particular currency pair over a certain period of time: price and time. The main difference is that Renko charts show only the change in price, neither trading volumes nor time intervals are taken into account in their development. The principle of building Renko bricks is based, as already mentioned, only on price fluctuations. In order for the chart to be displayed correctly, first of all, it is necessary to set the size of one brick. For example, many traders use a simple rule: 1 brick equals 10 pips. In other words, for a new brick/block to appear on the chart, the price must change by at least 10 points. Candlestick chart: Renko bars: This is the feature of the Renko chart: it is extremely smooth and clear. All blocks have the same size. At the same time, if the price has changed by only a few points, it will not be displayed on the chart. There are two types of brick size assignment methods: traditional and ATR-based. It measures the volatility of the asset, i.e. the values will be different at different periods of the trading period and on different time intervals. If you use this method, the value of the Renko bar should be equal to the ATR value. Main Advantages and Disadvantages Like any other graphical display of price changes, Renko has its pros and cons. Advantages of Renko: • This principle of construction allows to eliminate almost all noise from the chart as mentioned above. • Renko shows itself perfectly in work with most indicators. Let's remember the main problem of some popular indicators - they output data with some delay (information is substituted into the formula only after the candle is closed). And since Renko is not tied to time, the indicator displays more real information as a result. • Renko indicators show themselves perfectly in intraday trading. The trader does not need to wait for the candle to close. The Main Disadvantages of Renko are as Follows: • The chart does not work with most volume indicators. • A new brick is built only when the trend increases/decreases by a certain number of points (which is equal to the size of one block). That is, the chart can remain unchanged for a long time if the market is consolidating. • Renko chart does not show consolidation and impulse moves as seen on regular charts. • In order to be aware of the likely measurement of trend direction, it is necessary to constantly monitor the market with other charts. Examples We will use a simple strategy based on the moving average with a period of 20 on the 15 minute timeframe. The sell and buy signal will be pinbar. Enter the trade when the pinbar is created near the moving average. Of course you can create your own strategy. You just need to spend some time with the chart and you will know if it will work for you or not. EURAUD USDJPY GBPUSD (Sometimes Renko chart gives really beautiful and clear signals.) Conclusion Renko charts are quite convenient and practical because they display symmetrical candles and are effective for identifying major trends, support and resistance levels by filtering out noise. They can also be used in combination with other indicators to improve trading results. Renko charts allow you to identify various reversal patterns and see price structures in the market. However, they are mainly suitable for intraday trading.
Education
by DeGRAM
24
EURUSD is trending downSterling GBPUSD rose to a three-week high of $1.2296, while the euro. EURUSD last bought $1.0606, not far from Tuesday's more than two-week top of $1.0620. "The Fed is shifting away from further rate hikes, and its tightening bias too may be dropped by December," said Thierry Wizman, Macquarie's global FX and interest rates strategist. U.S. Treasury yields have similarly tracked lower following the dovish Fed comments, with the two-year yield (US2YT=RR), which typically reflects near-term rate expectations, hitting a one-month low of 4.9260% on Tuesday. It was last at 4.9675%.
Short
by FalCol_TradingMaster
1
GBPUSD is trending downThere is now a near-consensus perception that the Fed will leave rates on hold at its Nov 1 meeting, following recent comments from senior Fed officials supporting a pause. The CME FedWatch Tool prices an 85.4% chance that rates will remain at 5.25%-5.50% versus 53% a month ago. The signals from the Bank Of England are less consistent. Deputy Governor Ben Broadbent and policy committee member Catherine Mann have conflicting views. This suggests that yield spreads could tighten, though both central banks remain driven by upcoming data. Technically, the rising 5 and 10-day moving averages, combined with a close above the 21-DMA, which had capped the GBP/USD downtrend, are strong positive signals. A test of the next major resistance at 1.2442-60 is viable; 1.2442 is the 200-DMA and 1.2460 is the 38.2% retracement of the July-October slide. A close below the 1.2195 10-DMA would however undermine the idea of a major corrective bounce.
Short
by FalCol_TradingMaster
NzdCad could see a new trend heading up on dailyCould be starting a new trend upwards on daily. looking for pullbacks or opportunities for long **Find out more from my Tradingview Stream this week** *************************************************************************************** Hello there! If you like my analysis and it helped you ,do give me a thumbs ups on tradingview! 🙏 And if you would like to show further support for me, you can gift me some coins on tradingview! 😁 Thank you! Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. The author/producer of these content shall not and will not be responsible for any form of financial/physical/assets losses incurred from trades executed from the derived conclusion of the individual from these content shared. Thank you, and please do your due diligence before any putting on any trades!
Long
by Shadowing_The_Big_Boys
XAUUSD is trending downAfter Hamas' surprise military attack on Israel last weekend, safe-haven demand for gold increased sharply. Thereby, December gold price increased by 18.40 USD, to around 1,863.40 USD/ounce. Besides, the gold market is also being affected by US macroeconomic data about to be published this week. Meanwhile, Marc Chandler, CEO at Bannockburn Global Forex, said the market The gold market needs more economic data to confirm the sustainability and clearer direction of the market. According to Chandler, currently the gold market is still mainly affected by the strength of the USD and bond yields, not the gold purchasing activities of central banks. He believes that gold will have to move above the level of 1,833 - 1,835 USD/ounce to stabilize the current trend. OANDA:XAUUSD SELL 1863-1865 ✔️TP1: 1858 ✔️TP2: 1853 ❌SL: 1868
OANDA:XAUUSDShort
by FalCol_TradingMaster
XAUUSD is trending downWorld gold prices tend to increase in the first trading session of the week. Wall Street analysts and retail investors are evenly split on the outlook for gold prices this week. After a series of days of losses since the US Federal Reserve (FED) kept interest rates unchanged on September 20 and after the US employment report pushed spot gold prices to a new 7-month low of 1810.46 USD, gold is finally showing signs of positive recovery. Meanwhile, Mr. James Stanley - senior market strategist at Forex.com said that gold will maintain its recent price range but cannot increase in price, and the precious metal may even probe its low level this week. This. XAUUSD SELL 1850 -1852 ✔️TP1: 1844 ✔️TP2: 1838 ❌SL: 1856
OANDA:XAUUSDShort
by FalCol_TradingMaster
1
TRADING SESSIONS CHARACTERISTICSIn this post, we will look at the three major forex sessions and their features to understand when and where we can expect volatility and movement in the forex markets. This will be helpful for those who want to associate their forex market trading as a day trader. Main Sessions in the Forex Market When trading currencies or indices, there are three main sessions that occur every day. We all know that the currency market is open 24 hours, but during those hours when the markets are open there are spikes and lulls in volume and volatility that we need to be aware of. Asian Session The Asian session comes first. The reason why the trading day starts with it is that it opens the trading week as early as Sunday, at 8:00 am in Tokyo and 9:00 am in Sydney. This session is usually marked by very volatile price action, with the exception of some pairs (JPY, AUD, NZD) occasionally showing volatility during the Asian session. In addition, there is usually little volume or manipulation by banks and financial institutions at this time, resulting in very organic and slow price movements. Liquidity at the Asian Session There is one interesting feature here. This thing is that a little volatility in the Asian session is created naturally, because of this over the range of the session, above and below, liquidity is created. As the London session begins, the price moves strongly to one side. When day trading, you must realize and consider that that liquidity above and below the Asian session range is highly likely to be absorbed almost immediately after the London session opens. London Session Following the Asian session, the London session opens. This time is the main trading time in the UK and Europe. Why do people love the London session? Asia tends to accumulate liquidity in or around its range, the further out, the more volatile the market gets. When trading opens in Frankfurt or London, there is a huge volume of orders coming into the market. This creates ideal trading conditions, especially for those who want to capitalize on large intraday movements. Before London Opens The official opening starts at 8:00 am local time. The London session is characterized by high volatility for the first 2-3 hours, after which this volatility starts to slow down as both retail traders and financial institutions start having lunch. London time is great, especially if you will be trading major pairs, European indices or equities, because London movement is real movement. Lull in London Session From about 11:00 to 12:00 (noon), price fluctuations quieten down a bit as the major movements in the London session come to an end. This does not mean that the trading day is over and there is no more volatility, from three o'clock and up to an hour before or after the opening of the New York session you can see it rising again. Most traders who trade both sessions take a break, and those who trade only the London session may call it a day. New York Session Next we have the New York session, which is a favorite for those living in North and South America, as well as for Europeans who are just too lazy to get up early for the London session and prefer to start trading at 13:00 local time zone. The New York session is special because it also includes the opening of the US stock market, which leads to volatility in certain asset classes that forex traders can trade, including indices. Before the Opening New York Session As with the opening in Frankfurt before London, the hour before the session opens is worth devoting some attention to trading and analysis. There is usually a bit of a lull with volatility during this time frame as well. This is something to be aware of and remember, as a good trader, that normal movement will soon begin again. Opening of New York Session Next, the New York currency session opens at 8:00 am EST, which is usually accompanied by a lot of volatility, but not as consistently as the hour or two of the London session. During the New York session, you will usually see a big spike in volatility across the major pairs and North American indices, and sometimes a little volatility into the evening. It should be noted that the London session closes at 4:00 p.m. local time, which means lower volumes from London banks and other financial institutions. The Highs and Lows of the Day The day's highs the day's lows are key liquidity levels that can either be consumed or used as target liquidity to drive movement. Typically, you will want to mark the highs and lows of previous days to get an idea of what liquidity is being harvested where, as well as the current day's high and low if globally you are in a price range. Traders, If you liked this educational post, give it a boost 🚀 and drop a comment
Education
by Lingrid
14
EURUSD is trending downSupport for lower EUR/USD remains in early 4Q but becomes less clear in November and December, when seasonality indicates a weak USD and positive risk appetite, SEB Research analysts say in a note. "However, in October, the relative rate spread tends to be supportive of a lower EUR/USD," they say. Current macroeconomic trends also support a stronger USD, with the soft-landing narrative and "higher for longer" monetary policy stance having a strong hold on markets, they say. The euro trades 0.1% lower at $1.0538.
Short
by FalCol_TradingMaster