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

by Abe Cofnas

July 2010

Intermediate to advanced

275 pages

5h 28m

English

Wiley

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The Decision Path of the Trader
1.1. Building Investor Emotional Intelligence1.1.1.1.1.1.1. Chapter Notes
2.1. High-Probable Entry Conditions2.2. What are Price Break Charts? Basic Concepts2.2.1. Rules for Construction of Price Break Charts2.2.2. Reversing Block Colors2.2.3. Reversal Parameters2.2.4. Selecting the Time Interval2.2.5. Column Shape Changes2.2.6. Pattern of Block Sequences2.2.7. Flip-Flops2.3. Reversal Distances: A Key Metric2.4. Consecutive High and Low Close Sequences2.4.1. Copper (HGN9 COMDTY) Price Break Sequences2.4.2. Histogram of S&P 500 Price Break Sequences2.4.3. Dollar/Yen Up and Down Price Break Sequences2.4.4. Gold Up and Down Price Break Sequences2.4.5. European Currency Up and Down Price Break Sequences2.5. Is the Reversal Serious?2.5.1.2.5.1.1. Chapter Note
3.1. Trading in the Direction of the Trend after a Counterreversal Block3.1.1. Select Prevailing Trend3.1.2. Select Entry Time Interval3.1.3. Detect Counterreversal in Place3.1.4. Place a Buy Stop Order or a Sell Stop Order3.2. Join the Trend after the Appearance of the First or Second Reversal Block3.3. Fibonacci Resistance Confirmation3.3.1. Entry Location3.4. Countertrend Scalper3.5. Always-In Strategy3.6. Flip-Flop Reversal Entry3.7. Momentum Trading—Six-Line Break3.8. Price Break and Volume Data for Equity Charts3.8.1. Stop-Losses, Trailing Stops, and Price Break Charts3.9. Multiple Setting Intervals and Price Break Charts3.9.1.3.9.1.1. Chapter Note
4.1. S&P 500: Price Break Chart Patterns Using the Day Chart4.2. Crude Oil and Price Break Charts4.3. Microdetection of Sentiment Reversals—The Use of Price Break Charts for Momentum Trading4.3.1. Momentum Trading: 6-Line Breaks and Tick-Level Data4.4. Price Break and Tick-Level Price Action4.5. Six-Line Breaks and Fibs
5.1. Cycles and Price Break Charts5.1.1.5.1.1.1. Chapter Note
6.1. Contemporaneous Visual Correlation of Instruments6.1.1. S&P 500, Dow, Cash, and USDJPY6.1.2. Copper and Freeport–McMoRan Copper and FCX6.2. Volatility and Price Break Charts6.3. Price Break Charts and Sentiment Data: Innovative Applications6.3.1. University of Michigan Survey of Consumer Confidence Sentiment6.3.2. ZEW German Confidence Index6.4. Price Break Charts and the Global Financial Crises6.4.1. The Bloomberg United States Financial Conditions Index6.4.2. Senior Loan Officers Survey6.4.3. Philadelphia Federal Reserve Bank Business Outlook Survey6.4.4. The Milwaukee Purchasers Manufacturing Index6.4.4.1. Price Break Charts and Inflation Watching6.4.5. German Business Expectations6.4.6. Japan Tankan Survey of Business Conditions6.4.7. Commodity Markets and Price Break Charts
7.1. Selecting Direction with Price Break Charts7.1.1. Rules for Buying Calls and Puts with Price Break Charts7.2. Selecting the Strike Price7.3. Risk Reversal Price Break Charts Analysis for Currency Traders7.4. Price Breaks and Currency Volatility Smiles7.4.1.7.4.1.1. Chapter Note

8.1. What is Renko Charting?8.2. Tactical Trading Rules for Renko Charts8.3. Key Components of a Renko Charts Trade8.3.1. Fear and Renko8.4. Step 1: Renko Chart Setting Sizes and Time Intervals8.4.1. Gold and Renko Chart Variations8.4.2. Crude Oil and Renko Chart Variations8.4.3. Dow Jones Cash8.4.4. U.S. Treasury Notes8.5. Step 2: Select Chart Time Interval: Use Three Time Intervals8.6. Step 3: When a Trade Enters the Average Target of Profitability, Turn On the Renko Charts8.7. Time and Bricks8.7.1. The Silent Doji8.7.2. Bricks per Minute or Bricks per Tick8.8. Renko Charts and Economic Data Release Trading8.8.1. Renko Charts and Economic Data Releases: Trading Strategy Variations8.9. Using Renko Charts to Enter Positions8.9.1. Renko Charts and Parabolic Curves8.9.2. Renko Charts and Fibonacci Resistance Lines8.9.3. Renko Charts and Bollinger Bands8.10. Renko Charts in Multiple Markets8.10.1. Gold8.10.2. Crude Oil8.11. Renko Charts and Six-Line Break: Tools for the Scalper8.11.1. EURJPY8.12. Renko Bricks at the Tick Level8.13. Renko and Volume8.13.1.8.13.1.1. Chapter Note
9.1. Kagi Chart Basics9.2. Buy and Sell Signals with Kagi Charts—When Yin Turns to Yang9.3. Kagi Charts: The Keys to the Turn of Sentiment9.3.1. Alternative Settings for Kagi Turnovers9.4. Quantifying Kagi Charts9.5. Kagi Versus Candlesticks—Which Is Better?
10.1. How Point and Figure Charts Work10.1.1. Reversal Settings: When to Vary Them10.1.2. Setting Box Size as a Basis for Stop Strategies10.2. Variations in Settings in Selected Markets10.2.1. Gold Day Chart Compared to Ten-Minute Chart10.2.2. Crude Oil and Point and Figure Charts10.2.3. The Horizontal Count10.2.4. Fibonacci Resistance Levels and Point and Figure Charts10.2.5. The Dollar Index and Point and Figure Charts10.2.5.1. Strength of Direction10.3. Combining Chart Types10.3.1. S&P 500 Cash Day Chart10.3.2. Multiple Views of Gold10.3.3. Multiple Views of Oil10.3.4. Multiple Views of S&P Cash One-Minute Charts10.3.5. One-Minute Example10.3.5.1. Chapter Notes
11.1. Using the Price Landmark Matrix11.1.1. Components of the Price Landmark Matrix11.1.1.1. Section 1: Raw Price Data11.1.1.2. Section 2: Price Break Chart Components11.1.1.3. Section Three: Kagi Chart Components11.1.1.4. Section 4: Renko Chart Components11.1.1.5. Point and Figure Chart Components11.1.2. The Price Landmark Matrix Map: A Visual Path Analysis11.1.2.1. EURUSD11.1.2.2. Gold Price Landmark Matrix11.1.2.3. Crude Oil11.1.2.4. The DAX and the Price Landmark Matrix11.1.2.5. S&P 500 and the Price Landmark Matrix11.1.2.6. The SPX Price Landmark Map11.1.3. Conclusion on the Price Landmark Matrix
12.1. Decreasing Frequency Comparison12.1.1.12.1.1.1. Comparison of Ben Bernanke's and Jean-Claude Trichet's Speeches: A Cross-Sectional Analysis12.1.1.2. Words Shared between Ben Bernanke and Jean-Claude Trichet12.1.2. Text Mining of Federal Open Market Committee Statements12.1.3. FOMC Minutes12.1.4. Comparing Trichet Testimony with Bernanke Testimony12.1.4.1. Chapter Notes
13.1. Cycle Detection and Projection13.1.1. What is a Wave?13.1.2. Methodology for Generating Cycle Waves13.1.2.1. Fourier Analysis13.1.3. Cycles and Volume Data13.1.4. Wavelet Cycles Are Coming13.1.4.1. Chapter Note

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

About the Author

Abe Cofnas is a leading forex trainer and analyst. Since 2001, he has been Futures magazine's forex trader columnist, writing over 100 columns and providing strategies and tactics on mastering forex trading. He has conducted seminars throughout the United States and in London and Dubai on fundamental and technical analysis tools for understanding currency for the Online Trading Academy and related markets. In 2001, Mr. Cofnas founded www.learn4x.com to provide online training on forex trading, including innovative techniques in the use of price break and Renko charting. Cofnas recently formed www.fxdimensions.com, a company that develops behavioral finance algorithms that generate trader performance analytics and apply risk and leverage controls for trading teams. He was a technical analyst consultant to Weiss Research Inc., has served as an equity broker, and traded both futures and forex markets. Cofnas holds two master's degrees (in political science and public policy) from the University of California at Berkeley. He is the author of The Forex Trading Course and The Forex Options Trading Course. He resides in Orlando, Florida.

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

by Abe Cofnas

About the Author

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Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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