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1. Summary
With this article I intend to continue the study of the renko chart that I started in my previous article (Renko charts on the Jforex platform) so that traders and operators can increasingly incorporate the use of this powerful price action tool into their daily lives.
In the previous article we learned how to put and configure renko on the Jforex platform and I put a basic strategy to understand its operation, its operational logic (bottom failure, top failure, price level breach). Understanding this logic is key to knowing how to operate a renko chart.
Now we will go further and deepen our studies and we will use some more advanced understandings for the use of more specific indicators and also the introduction of "Heikin Ashi smoothed" - That's why I call this setup "Renko Ashi".
He whose ranks are united in purpose will be victorius - Steve Nison


2.
Renko chart and Heikin ashi
To continue with the studies we will first make some definitions:
  • "Heikin Ashi": are candles charts that have a different form of calculation for their formation, eliminating the noise of a normal candle in time.
Heikin-Ashi Candle Calculations
HA_Close = (Open + High + Low + Close) / 4…
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al_dcdemo avatar
al_dcdemo 31 Aug.

A great article!

Alexander22 avatar

good job

Dimko1 avatar
Dimko1 1 Sep.

постараюсь изучить вопрос детальнее

Wovch avatar
Wovch 1 Sep.

very nice

Klaudia25 avatar

well done

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36/68
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13Introduction
The forex market is a constant battle between bulls and bears. There is wise saying that “Bulls make money, bears makes money but pigs are slaughtered”. If we do not implement strategic trading considering all the risks, having proper money management and mastering own psychology then the result will be obvious. I often note that in ranging market, one particular strategy always works. It is called “False breakout strategy”. In this article, I will illustrate how I used this strategy. False breakout strategy is based on the major support and resistance levels.
Time Frame and Currency Pair
The false breakout strategy can be implemented in any time frame and any pairs, but for this example, I took 4 hours candlestick chart on USD/SEK currency pairs. This means that each candle on the chart represents 4 H of price movement.
Strategy Concept
In ranging market, the price often reverse after an attempt of false breakout around the resistance or the support levels. This happens because of the buyers and sellers are in hesitant state of mind at tricky levels. (Figure 1 equilibrium condition). Figure 1. In ranging market, equilibrium condition prevai
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brilliant avatar
brilliant 25 Jan.

does it work with majors

Erka_shildeg avatar

Yes, it is the same

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9/66
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Introduction
Traders have an array of indicators to look to when it comes to identifying setups, patterns, trends and reversals. These are all viewed on a price chart, which is arguably the most important piece of information a trader can have. Heikin-Ashi is a charting technique that is often overlooked but offers valuable insights for those who know how to put this derivative of Japanese candlesticks charts to good use. They run smoother, easier to understand, keeps you in the trade longer generally and creates less stress.
I want to show you a reliable price action pattern using Heikin-Ashi candles, Pullback Candle Reversal Pattern is a formation that makes a candle in the direction of the trend, followed by a longer candle that, in this case, set a lower low or higher high and then pulled back leaving a long wick, followed by a third candle that may or may not change color but sets a higher low or lower high and is usually an inside bar, followed by an entry candle that breaks above or below the previous inside bar candle. That is the entry point.
Currencies
  • This pattern works on all currencies.

Time Frames
[list][/list]…
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jsmdfx avatar
jsmdfx 25 Apr.

Is a great analisis, good Job

sicmbg avatar
sicmbg 1 May

http://www.forexfactory.com/attachment.php?attachmentid=538489&d=1283703046

!!!  :):):)

Uladzimir avatar

интересно

Analiticar avatar
Analiticar 25 June

Nice

klizthiac avatar
klizthiac 29 Aug.

Good article

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5/67
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On my last article I've wrote about
price levels. I tried to give basic understanding
about levels and how I classify them. In this article I am writing
about “Price Action” levels and how to trade them. These levels
are found not using any calculations or complex formulas. They are
found only from a chart manually.
What
are Price Action levels
Forex market (the
same as any other market) is driven by supply and demand. If we have
more demand than supply – price rises, if more supply than demand –
price falls. In financial markets large funds, banks or corporations
have interest at particular price – they buy or sell currency. So
they create supply and demand zones. It is not possible to fill a
very large order at the same price – because large orders move
markets. So market movers fill as much as they can at predefined
level and when price moves out of bounds, they stop buying or selling
currency and wait for price to come back. These zones are formed with
stop loss or take profit orders too (basically stop order is also
selling or buying currency).
Correctly found
supply and demand zones always influence price. Even when we have a
very strong fundamental factor, price reacts to th…
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MyiDEA avatar
MyiDEA 21 May

good article...

jonas avatar
jonas 22 May

Agree - levels are important thing. But why not use other indicators. Some of then really helps me.

skaiste avatar
skaiste 23 May

Nice article. Thank you for that.

Furian avatar
Furian 24 May

Briliant article. extremely educational. thanks for any support +1

MyiDEA avatar
MyiDEA 31 May

Nice and Brilliant article.....

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14/58
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Today I want to show you my final step in my trading strategy.Part 4 of 4
All together now
So you know, what Camarilla means.
You know how to draw trendlines.
And you know how to set the Fibonacci Levels.
 
In this step, we let them work together.As you can see on the pictures above, there are different Camarilla Levels,
Trendlines and Fibonacci Levels drawn. So you have important levels for your
trades. In the 1st picture you can see the Camarilla Levels. So you wait for an
trendline, draw the Fibonacci Levels and Camarilla Levels and take a Trade,
where 2 of these Indicators come together. Sure it’s better to have 3
indicators work together, but if 2 of them say yes, take your trade.
Trades in the 1st Picture (Zoom of Picture 2)
e.g Point 7, you have a Trendline and an Camarilla Level, which are
supporting. You just wait, till the price touches the trendline and make your
trade. Entry @ Trendlinetouch, your SL = L4 Level (a little bit below) and TP =
L1 or Pivot. Depends on your opinion.
At point 8, same again. Trendlinetouchdown = Entry, SL = L4 (a little bit below)
and your TP minimum L1 I’d prefer the Pivot Point
And Point 9 you see the H4 Level, which is reached andbroken for…
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Bluedragon avatar
Bluedragon 28 Feb.

very interesting article +1 ;)

TheDarkMatter avatar

very intresting.good luck

Nicco avatar
Nicco 29 Feb.

Interesting! I used copy/paste and I saved your article series to study. Good job!

heaptrader avatar
heaptrader 14 Mar.

Strategy as a whole good, but at a market great speed will work not so well; there will be problems with installation SL, and without it it is possible to lose the deposit quickly.

Panic avatar
Panic 15 Mar.

good one ....

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4/58
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In the past I've wrote an
article about EURCHF setup. We all know that currently this pair is
in a strong downtrend. But we also know that SNB set a floor –
1.2000 - for this pair. So we still have
great opportunities to trade. Currently I am building longs of this
pair. I expect that just after these problems and uncertainties with
Euro end, pair will move up. Also intervention by SNB is probable
too. Rumours about new – higher floor would fast lift the pair too. But also while trading this pair, risk
has to be calculated and stops have
to be used. We cannot be 100% sure if SNB will
defend floor. They can change their minds. In this case we would get
crash of this pair. So all positions should be reversed in this case.
Anyway I think that this scenario is least probable, because now,
when they already set the floor, changing minds would be very
damaging to Frank rate.In this
article I will shortly show the levels and what I am expecting.
In a
chart below is a daily chart of bigger picture. On a regular pair we
could expect a reversal, so with 1.2000 floor odds for a reversal are
even higher.
Below is
a 1 hour chart with uptrend line. There were few nice opportunities
to long from …
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jurga1s avatar
jurga1s 18 Feb.

Not bad. Now the pair is at 1.2087, that is +23 pips from 1.2064. And that level really worked! Just in this case fundamentals means a lot too.

aurelijus avatar
aurelijus 18 Feb.

Don't know, this looks dangerous.

ritesh avatar
ritesh 26 Feb.

perfect analysis.

adask avatar
adask 29 Feb.

Currently the pair is stuck at 1.2050. If we would look at bid line we'll see how 1.2050 is magic. We have to keep in mind this. I think SNB will not allow lower for now. And currently I see some funds forecasting 1.2700, well this is far future.

Bluedragon avatar
Bluedragon 29 Feb.

good luck;) +1

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28/58
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Today I want to show you the next step of my trading strategy. The strategy is made in 4 steps. Here you find the 3rd part of it. Part 3 of 4 Fibonacci 1st you should know, how to draw the Fibonacci Levels Drawing the Fibonacci lines is very comfortable in our Trading Plattforms. Fibonacci Levels are calculated automaticly and then you see the % lines in your chart. Only thing you have to know is, how to draw the Fibonacci Levels and where you have to start your survey. In your chart, the price is moving up and down. If the price is moving up, you have to draw from the lower price level to the upper price level. If the price is moving down you draw it vice versa.    As you can see it in the pricture, the price moved up and then fall back. So you were able to draw the Fibonacci line. It is drawn by connecting P1 and P2. So the price is moving from P1 to P2 and moving back to P3 and climbing up again. This means, the Fibonacci levels are a good place to trade. If you are trading only Fibonacci Levels, you take Buy-Orders at those Fibonacci Lines. Strongest Levels are the 50% and 61,8% Levels.   Perhaps you’ve seen that in the Pic…
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CASPI avatar
CASPI 26 Feb.

Classic is a haze. I got it. Good explained. Quick.

bigbos6969 avatar
bigbos6969 28 Feb.

good+1

bigbos6969 avatar
bigbos6969 28 Feb.

good+1

Panic avatar
Panic 15 Mar.

nice strategy keep it up .

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27/58
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My trading strategy
I want to show you one of my trading strategy. The strategy is made in 4
steps. Here you find the second part of it.
Part 2 of 4
How to draw Trendlines
 
1st Question you have to answer:
What are Trendlines and what is the sense on drawing them?
 
Drawing trendlines on an FX Chart is
a little form of art. That means, that everyone of us has an unique way of
drawing them. You just have to follow a few rules, but you should know, that
there is no ideal way to draw them.
Never make the mistake and draw lines
like you wish they should like, that you CAN interpret better results for your
mind.
We draw trendlines, because we want
to see different support and resistance levels. As you can see on the chart
below, the trendlines which you may see, show a „Resistance Level“ (grey and orange)
and an „Support Level“ (green)
 
How to draw trendlines?
The trendline in grey is made by
connecting Point 3 & 5.
The orange trendline is made at step 6
connecting Point 1 & 6.
The green trendline you are able to
draw at point 4, connecting 2 & 4. You connect the upper candle tops (line of
resistance) respectively the lowest point of the candles for supporting trendlines.
 
So you hav…
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NagarajaAdiga avatar

should have given more chart examples of trend line. good article though. keep up writing.

WyMe avatar
WyMe 23 Feb.

One picture isn't loading; had troubles on upload the pictures, sorry :)

CASPI avatar
CASPI 26 Feb.

Labor health. Effort is beautiful. Have not had the test. A sensible strategy.

bigbos6969 avatar
bigbos6969 28 Feb.

good+1

Panic avatar
Panic 15 Mar.

good one ...

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28/65
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EURCHF is one of the unique pairs. It's action is always interesting and regular analysis not always works on this pair. It's because Switzerland doesn't want strong Frank. Why is that? Because they export a lot and weak currency compared to others, means that products are cheaper. And we all like to buy cheaper products. So from time to time SNB (Swiss National Bank) intervenes (sells a lot of Franks, so weakens it). This is the reason why it's hard to trade on regular technical analysis. Also sometimes it's enough for rumors about intervention to come out and everybody starts to sell CHF.  Obvious and recent intervention happened at 2011 Septemper 6th. That day EURCHF pair moved ~1000 pips. Yes yes - 1000 pips in one direction and in several hours. 1 hour chart below (links to the full-sized images are listed in the end of this article).There's also a very unique thing about this pair - SNB said that bottom for this pair will be 1.2000 and they will do everything to defend this level. I do not remember any currency pair to have a bottom. It's a very big advantage, we should use in our favor. Besides, rumors are that they will set a new bottom - 1.3000. But this is not confirmed, …
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LinnuxFX avatar
LinnuxFX 24 Nov.

Nice Trading approach, good luck for this article, and for the trade if you enter on it...

jonas avatar
jonas 24 Nov.

Good article. But now euro/frank looks in sooo downtrend! Do you think SNB will intervene again? I would be afraid to long now.

adask avatar
adask 25 Nov.

Thanks LinnuxFX. Jonas - I know that longing eurchf doesn't look good now. But I think we'll get a good trade soon. I will long at 1.2230, 1.2130 and if needed at 1.2030.

adask avatar
adask 25 Nov.

Besides there's eurchf chart - http://twitpic.com/7jba74/full
I think a nice entry level forming. But we need euro strength.

ksalam avatar
ksalam 26 Nov.

Interesting and useful post. thanks.Good luck +1
Visit my article & give me your feedback.

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2/73
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This article is about one of my trade setups. I'm trading this since 2010. I have 73% winners and 27% losers. My average winning trade is 14.2 pips (including those at BE), average loser is 13.1 pips. Total 1661.4 pips won and 576.4 lost. So I am +1085 pips on this current setup. I like this setup because it doesn't take much time. Using this setup I have to watch market no more than two hours per day. I came across this setup because I always switch on my charts at 5 am GMT. It's a good time for me to start a day. I have time to read all news, analyze Asia market moves. Sometimes I make trades, but this is not part of the setup I am talking here about. As we all know London opens at 7am GMT. And my trade happens just after that. What do we need? First let's agree that all time in my article will be in GMT (Greenwich Mean Time) and AM (morning). It is convenient that Dukascopy time is GMT. So we have to start watching charts from 6:30. Sometimes even 6:55 is enough, but let's do 6:30. We will watch EURUSD chart. This setup works on GBPUSD too, but let's talk only about EURUSD. I am always watching 1 hour and 15 minutes charts. Sometimes switch to 5 minutes. But 1 hour is always o…
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adask avatar
adask 31 Aug.

Charts are here: http://twitpic.com/6dvunl and http://twitpic.com/6dvujq

thepipswizzard avatar

very interesting..I haven't noticed until now...thanks for sharing +1

adask avatar
adask 1 Sep.

Not sure if I can post anything. But today I'm looking for a long. For now very nice one forming. 7:52

adask avatar
adask 1 Sep.

Had trade -10 pips.

ritesh avatar
ritesh 6 Sep.

Where's MasterFreak gone?

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