PnF , Renko , Kagi , TLB, etc.

Discussion in 'Technical Analysis' started by Sundog, Mar 4, 2007.

  1. Sundog


    I would like to start a thread about those chart types.

    Is anybody using them or other exotic chart types for their analysis or even trading ?

    I think with those chart types you are more forced to be more specific about a continuation or reversal of a trend, because you need to define a reversal amount.

    If you use those charts, how do you define the amount ?

    Is ATR a good figure or do you use some percentage of the STDEV or just trial and error to define the reversal amount ?

    I am using Metastock. Which proggys do you use to plot those charts.

    I think it is a good experience to use them and a good prep to take the next step into systematic or mechanical trading.



    Kagi Chart Example

    <img src=>
  2. Sundog


    Look at this.

    <img src=>
    • kagi.gif
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  3. One consideration for all of these charting styles is they usually compute on a close to close basis (ignoring high-low's) Stops & MM have to account for this in yr trading plan!

    They would be more useful, imo, if they could work off highs & lows to determine swings.
  4. I have been studying alternative price charts for the past 3 years and after extensive tests and programming hour ...the winner is 100% renko charts for all different time period. Very short, intraday swing and even long term trend following as the noise that this specific filters out is very powerful and improves most any indicator ever developed.

    We have developed a Rendle which is a combo of of Candle and Renko and have good tick resolution mixed with nice trend and counter trend price action that smoothes out any price action chart.

    Add some volume filter and than some market profile and Volume profile and you have a very nice set of tool.

    Do some work and you can find many more advantages of this representation of price action.
  5. Star Dust,

    You can use set times of 10 second to mins to hours and it changes the chart considerable and taking that close price into consideration will add slippage and most charting programs do not backtest and calc that correctly. The BT numbers will always be better but there are custom solution To get the proper prices and use the slippage and noise reduction to your favor if you think about the set period, and some smart execution algorithms.

    There is always bad with he good but using multi time frames to help filter out the bad will help your results.
  6. This has the best of both worlds. The Noise filtering of price spikes that do not stick or set and the abiity to see the bricks' low and high.

    You will not see this on any other program as this was a custom build and used for in house traders only.

    <img src= width=800>
  7. Sundog


    Thank you for sharing.
    That´s a really decent picture . Thinking outside the box pays off.

  8. We are adding some tick delta and some shorter term filters to profile and give even more tick resolution and some volume analysis to offer a better probability of prices moving to the AREA of least resistance.

    Trade well........This price action and volatility is great the last week and this Sunday move is Asian is leading to more climatic action in the US.

    Vol = Profits for our price action systems.
  9. Very nice Wyckoff. The rendle is an interesting innovation combining the all important "tails".

  10. TraderD


    cool stuff
    #10     Mar 6, 2007