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

Epilogue

This book has explored new ways to increase the power of technical analysis by going beyond candlesticks and applying price break, Kagi, Renko, point and figure, and cycle charts in new ways. It also demonstrates an integrated approach not seen before. These chart types have been in existence for a long time, in many cases for over one hundred years. Now, in combination with new data integration and visualization displays, they can become more powerful tools than ever before. It is somewhat extraordinary that charting concepts that predate computer technology, long abandoned as archaic, can now be resurrected and become more relevant. This is the result of the stages of technological innovation we have witnessed. The first generation of self-directed traders (starting about 1996, with the appearance of the Netscape browser) enjoyed the breakthrough of being able to trade at a desktop computer. This was the start of the online self-directed trading revolution. The second phase of trading started with the arrival of laptop mobility. The third phase of technology is being experienced today with the emergence of low-cost flat screen displays that allow the trader to use multiple screens to enhance the ability to simultaneously scan more charts than ever before. Many traders can now have four or more screens. The next manifestation of digital technology will be homes with trading walls! In fact, "screen" is the wrong term to use. Instead, we should think of these displays as ...