With our somewhat monotonous (Sorry) “Still in cash in the SMA” call let me entertain you with a bit of education about Renko Charts. Much loved by some, not used by many.
Renko charts are non-time based charts that are only concerned with price movement. Renko charts are "time independent" charts that do not have constantly spaced time axes. They are named after the Japanese word for bricks or "renga". Here is a Renko chart of the S&P 500 this morning which has just ticked a sell signal:
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. You could use a fixed movement in cents, or percentage,...Continue Reading