Sentiment Indicators - Renko, Price Break, Kagi, Point and Figure: What They Are and How to Use Them to Trade

Chapter 11. Integrating Price Break, Kagi, Renko, and Point and Figure Charting

The aim of this chapter is to present a framework for integrating price break, Kagi, Renko, and point and figure charting without needing to view each chart. The result is a useful trading analysis and alert tool. The reader will learn how to combine the power of all these charting methods to identify key price landmarks, multiple entry points, and confirming signals. We will also introduce the concept of the Price Landmark Matrix analytical tool.

Using the Price Landmark Matrix

The best way to unleash the power of simultaneous use of price break charts, Kagi charts, point and figure charts, and Renko charts is to create a Price Landmark Matrix. This innovation, which combines data integration and design, identifies the key signals coming from these four charts. Since many traders do not have access to all or some of these charts, the Price Landmark Matrix concept provides an alternative. It scans the open, high, low, and close price data in the candlestick charts and converts the data, using appropriate construction logic, into multiple alerts in a data table format. This concept allows the trader to have the advantage of using alternative charts without actually having to display them.

Let's explore how this works with data for different instruments. We will demonstrate the Price Landmark Matrix for the EURUSD, gold, crude oil, DAX, and S&P. In principle, we can use it for any instrument.

First, we will ...