Yesterday we mentioned gold as an asset on the move. But let's look today with another chart to the evolution of the price of bullion. Where we could add some trend lines to yesterdays graph, we choose a renko-chart to illustrate the positive development.
Renko is about 'bricks'. The system is the same as the point-and-figure charts and permits to distillate in a much clearer way trends. The time factor is not as important as the price action.
We read on the Investopedia-site:
A type of chart, developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for bricks, "renga". A renko chart is constructed by placing a brick in the next column once the price surpasses the top or bottom of the previous brick by a predefined amount. White bricks are used when the direction of the trend is up, while black bricks are used when the trend is down. This type of chart is very effective for traders to identify key support/resistance levels.
This renko chart is calculated on daily values which gives a long term view on the price development.
Sphere: Related Content
No comments:
Post a Comment