G'day GF,
Yeah, the sharp decline on 42 down was a little unusual, at the time I said I didn't like it much, I found it a bit suss.......
Then it bounced back on just 3, which suggested it was in a supply vacuum (which meant that all the supply was bought previously on that downwave).
Then the 75 down which didn't go anywhere (lower), continued to suggest support for a rise in price.
After that price accelerated higher absorbing supply as it came in, firstly on 474, then on 494, with only the tiniest test on 11 down (no selling pressure).
Price then came back and put in an almost textbook retest of the breakout (483), followed by a secondary test on 122, which suggested selling pressure had reduced (compared to the previous downwave), which then set in motion a rise up to 34.50, where a fair bit of selling took place.
Price then came off and then rose back up on 625, which probably should have made a higher high, but didn't or couldn't (because it was being sold...), and then 219 made it nowhere (no extra ground higher), and when it broke lower then upthrusted the horizontal line @ roughly 32.10 on 41, demand appeared exhausted and a short position could have been taken at that point when price had confirmed by turning lower.
cheers
PS- After the 122 down (which was probably absorption of supply), price went up on 521 (mark up), then down on 13 (no supply), then up on 688.
yeah, David thinks Darvis had some good points to make....there are some mentions of him in the Book "Trades About to Happen"
Renko charts are interesting, and worth knowing a bit about.....it is sort of a bit like a modern Japanese version of PnF, where price is built up of bricks, with no time frame.
-- from Investopedia,
DEFINITION of 'Renko Chart'
A type of chart, developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for bricks, "renga". 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. White bricks are used when the direction of the trend is up, while black bricks are used when the trend is down. This type of chart is very effective for traders to identify key support/resistance levels. Transaction signals are generated when the direction of the trend changes and the bricks alternate colors.
http://www.investopedia.com/terms/r/renkochart.asp
