Monday, March 22, 2010

USD Renko Strategy

Let's first look at some UUP candlestick charts:

On the intraday chart, UUP gapped up on the open, but was under pressure all day closing lower. However, it did find support at the previous gap. This could be a possible bull trap. If the uptrend line is broken on the daily chart, the next support level is at 23.28 - at the 38.2% Fibonacci retracement level. The weekly chart also shows that UUP has run into resistance as well. We are at yet another decision point. What side of the trade should you be on? Renko charts can help you with that ..

Short Term - Bullish

Medium Term - Bullish

Long Term - Bearish

The long term dominant trend is still down on the monthly Renko chart. However, the weekly Renko chart shows that the USD is still in a medium term up trend. Wait until the weekly Renko trend reverses before rejoining the USD bear camp. If you plan to short the USD, then use the daily Renko to fine tune your trade.

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