How to use Renko Charts

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.

$XAU Mayan Time Cycles - Galactic

According to the Mayan Calendar, we are currently in the Galactic Underworld, which is the 8th Underworld. An Underworld is a major period in the Mayan Calendar with it's own purpose. I know there is a lot of talk about Dec 21 2012 - that is not the Mayan  Calendar. The Mayan calendar actually ends on Oct 28, 2011. The Mayan Calendar is not about the end of the world. It is about the "birth" of humanity. There are 9 Underworlds - think 9 months to give birth  ... I digress ...

Now let's see how the 13 Heavens of the Galactic Underworld overlay over $XAU. Each Heaven maps to a 1/2 "day" -  there are 7 days and 6 nights in each Underworld.

If you are curious, Night 6 ends on Nov 2, 2010. Day 7 (fruition) begins on Nov 3, 2010. Using the human birthing process as an anaology, time is accelerating. The contractions get closer together (time cycle period shortens) and the contractions intensify. But don't be scared. Don't let the media scare you. The only thing to fear is fear itself. The final outcome is the birth and a new life. It is darkest before dawn, and just like the birthing process we need to support each other to use all our energy for that final thrust.