Monday, February 14, 2011

New Momentum Indicator & Renko vs. Range Charts



Questions:
-          Range vs. Renko
-          The range bar measures a set range of price movements and when that range is met the bar prints.
-          13RANGE = 13 TICKS OF PRICE RANGE IN EVERY BAR
-          A renko bar does the same except the range has to be all in one direction for the bar to print.

-          SIMILARITIES:  they both print when the market moves (unlike time or minute)
-          TIME CHARTS show the market moving when it really isn’t.
-          We like to use RANGE for our trading, we make more money when there is a wider range, so why not use range to tell us when to trade.
-          Renko benefits = hold the trade longer, stay in the trend, but you can also stay in a LOSING trade much longer. (disadvantage)
-          You would use another type of chart to manage a stop
-          Range charts show you the activity INSIDE the candle.
-          Did we move up, and then drop?  Did we go straight up?  Or straight down?
-          Bullish/bearish candlesticks, and we DON’T get those with Renko.
-          CANT SEE the activity inside the candle on renko
      
-          JJMomentum Indicator

o    Download the indicator
o    Download the chart templates
o    Open the 13range and load Fast13
o    Open the 21range and load fast 21
o    That’s it!
o    The 21range chart looks at the 13range
o    The 13range chart looks at the 21range
o    How it works:
o    Green = both momentum indicators are pointing UP
o    RED = both momentum indicators are pointing down
o    Does not color if they don’t match
o    Does not color GREEN if overbought
o    Does not color RED if oversold

-          End of March Quad Witching:  the week of march 18th is a bad dream, that cn easily turn into a nightmare.
-          Thursday and Friday will be nasty
-          Wacky Wednesday will be a challenge, but still trade able
-          End of Q1 and the 3rd week of March (quad  witching)

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