You always want to trade with the major trend - the trend is your friend. Renko charts differ from traditional price charts because they ignore the passage of time and focus on price action and trend. Other types of charts with a similar perspective are Point and Figure, Three Line Break, and Kagi charts.If you want to learn more about these, I recommend the following book: Technical Analysis from A to Z, 2nd Edition
Let's take a look at some $GOLD Renko charts:
Use the weekly chart to filter trades using the daily chart to ensure you are trading with (not against) the longer term trend.
Let's take a look at $XAU and $HUI:
Daily Renke Charts
Now, let's step way back and see the big picture for GOLD using a monthly Renko chart:
The long term trend is still secure. Use the weekly charts to identify the dips and daily charts to time the trade execution.
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