Trading Renko charts Successful trading is based on trader’s emotionless state and simplicity. Clear vision, simple actions are everything what require in trading. Complicated views, especially predictions, make successful trading very hard task. By successful I mean consistent. My trading method is based on the two lines (and I called it – Two Lines Method). Those two lines are Support and Resistance. Buy support, sell resistance. Time from time is very hard to see clear picture and support and resistance are never just one number, usually there is support or resistance are, which can be 50 pips (FOREX) wide. Renko charts do great job to clear the market’s “noise” and whole picture of the market’s price action very well defined. Take a look at the example (0.1% box; AUDCHF daily chart):
Green area is a consolidation as a base for the new trend up. And trend remained up for few months until clearly visible consolidation has appeared on the chart at 1.0330 levels. Break down from that consolidation led to the ex-resistance at 0.9544 and that area became support and double bottom has been drawn. But after that price did not go very far to the up side and at resistance level 0.9845 turned to the down side, later came back up and back down again. And now price is on the same support level 0.9536. All this looks good, but how to make a trading decision? Should we buy here? Or should we sell? I cannot give an answer in the single article, there are many situations. But I will analyse this current situation to give some idea.