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2015issue C1112-15

Constructing Renko energy bands so support and resistance arrive as pre-marked leans

Support and resistance can be constructed as pre-marked concentrations of chart energy. Flex Renko bricks and higher-horizon energy bands make those leans visible before working bars arrive, so the later choice is whether to join a known reaction.

  • Support and resistance can be constructed as pre-marked concentrations of chart energy rather than as labels applied only after a bounce.
  • A flex Renko bar can be built so each brick is a self-contained energy unit whose color and body sit inside the increment that created it.
  • Energy-band overlays on weekly and monthly horizons can mark upcoming support or resistance leans before the working-horizon bars reach them.
  • The construction task is to make that energy visible in advance so the later decision is whether to join a reaction at a known lean.
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Pre-mark the energy before the bounce

Support and resistance can be constructed as pre-marked concentrations of chart energy rather than as labels applied only after a bounce.

The construction task is to make support and resistance energy visible in advance so the later decision is whether to join a reaction at a known lean.

Invented overlays hide the location

Moving averages and oscillator traces are treated as invented overlays, which makes the location of support and resistance energy harder to read on a conventional chart.

Visual energy construction builds the chart so support and resistance appear as energy contained inside the bars and bands, rather than as separate overlay ideas such as oscillators.

Build each flex Renko bar as one energy unit

A flex-style Renko bar can be built so each brick is a self-contained energy unit whose color and body sit inside the increment that created it.

That flex Renko bar is sized by price increment rather than clock time, so each printed bar is a self-contained unit of directional energy.

Non-price series, including an hourly mood scale from 1 to 10, are used to argue that any bar can be drawn as an expression of energy rather than as a clock interval alone.

Mark the lean with higher-horizon energy bands

Energy-band overlays on weekly and monthly horizons can mark upcoming support or resistance leans before the working-horizon bars reach them.

An energy band is a constructed envelope, often drawn on a higher horizon than the working chart, that marks an anticipated support or resistance wall before price arrives.

A midline through a lower-horizon energy band can serve as a refresh reference after a higher-horizon band has acted as temporary resistance.

The same construction across markets

The same visual construction of energy at support and resistance is described as applying in the same way to stocks, futures, exchange-traded funds, foreign exchange, and options.

Once the chart holds those pre-identified concentrations, later participation can join or reject the lean or wall. Editorial note: that remaining choice is a reaction at a known level, not a claim that the reaction must be taken.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
7 of 14 in the Renko chart track
201812-17 pp.Next on Renko chartFive-rule entries and exits with Elliott waves and Renko bricksA technically based system is described as combining technical analysis, money management and explicit trading rules rather than relying on any one of those pieces alone.
All readings on this track · 14 readings
  1. 2007Renko brick construction and breakout rules
  2. 2014Modified Renko brick size from tick inputs
  3. 2014Renko brick increment and open construction
  4. 2014Modified renko construction with RSI bands and a trend filter
  5. 2014Construction checklist for a brick-chart crossover and same-session breakout
  6. 2015Optimizing virtual bar size as a trend filter
  7. 2015Constructing Renko energy bands so support and resistance arrive as pre-marked leans
  8. 2018Five-rule entries and exits with Elliott waves and Renko bricks
  9. 2018Modified Renko charts as a filter for fake breakouts
  10. 2018V-Trade reversal, retrace, and continuation rules
  11. 2018A finished impulse, a Fibonacci target, and a reversing Renko brick as one test
  12. 2019Brick sampling changes what a volatility envelope can show
  13. 2019A consecutive Renko brick count as a mechanical entry-exit procedure
  14. 2019Renko brick scale as a falsifiable trend hypothesis
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