{"id":61309,"date":"2014-10-02T13:08:18","date_gmt":"2014-10-02T17:08:18","guid":{"rendered":"http:\/\/countingpips.com\/?p=61309"},"modified":"2014-10-02T13:36:06","modified_gmt":"2014-10-02T17:36:06","slug":"audjpy-renko-analysis-a-puzzle-in-the-making","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/10\/audjpy-renko-analysis-a-puzzle-in-the-making\/","title":{"rendered":"AUDJPY Renko Analysis \u2013 A puzzle in the making"},"content":{"rendered":"<div id=\"inves-3920312361\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">October 2, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By RenkoTraders<\/strong><\/p>\n<p>I was a bit too early in my <a title=\"AUDJPY Renko Analysis\" href=\"http:\/\/renkotraders.com\/renko-charts-analysis\/audjpy-renko-technical-analysis-11082014\/\" target=\"_blank\">previous analysis of AUDJPY<\/a> and the trade in fact chugged along to make new highs. That said, I got back to looking at AUDJPY and currently the Renko technical analysis makes for an interesting puzzle, especially if we combine the different strategies mentioned in the <a title=\"Renko Trading Strategies\" href=\"http:\/\/renkotraders.com\/renko-trading-strategy\/\" target=\"_blank\">Renko Strategies<\/a> section.<\/p>\n<p>So what\u2019s cooking with AUDJPY and what makes it such as an interesting puzzle?<\/p>\n<p>First, we look to the 25 pip AUDJPY fixed pip Renko chart shown below. For the sake of clarity, I\u2019ll mention all points as a bullet list.<\/p>\n<p><a href=\"http:\/\/renkotraders.com\/wp-content\/uploads\/2014\/10\/audjpy-25pip-renko.png\" rel=\"prettyphoto lightbox-0\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-251\" src=\"http:\/\/renkotraders.com\/wp-content\/uploads\/2014\/10\/audjpy-25pip-renko-600x276.png\" alt=\"AUDJPY 25 Pip Renko Chart\" width=\"600\" height=\"276\" \/><\/a><\/p>\n<ul>\n<li>Price broke the long term trend line and is trading near a support zone, so we could expect a retracement back to the break out zone at 96.35<\/li>\n<li>Based on the trend line break method, if price does retrace back to 96.35, we get the downside target to 93.6<\/li>\n<li>The problem with 93.6 is that it is 25 pips below the lowest low of the divergence, marked on the chart<\/li>\n<li>We know that when price breaks the low, there is a good chance for the correction to fail and thus price could head lower.<\/li>\n<li>This means two things\n<ul>\n<li>Price will reach the low of 93.6, invalidate the divergence set up<\/li>\n<li>Price will fail to reach the low of 93.6, the target of the trend line break method and therefore the divergence set up will be valid<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Now the puzzle gets interesting when we zoom into a 50 Pip Renko chart for AUDJPY<\/p>\n<p>Here, we find the same pattern playing out, the trend line break method. What\u2019s interesting in this method is that the break out of the trend line gives a downside target to 93.35, which forms a good support level as can be seen in the first chart above.<\/p><div id=\"inves-2600767060\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p><a href=\"http:\/\/renkotraders.com\/wp-content\/uploads\/2014\/10\/audjpy-50pip-renko.png\" rel=\"prettyphoto lightbox-1\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-252\" src=\"http:\/\/renkotraders.com\/wp-content\/uploads\/2014\/10\/audjpy-50pip-renko-600x276.png\" alt=\"AUDJPY 50 Pip Renko\" width=\"600\" height=\"276\" \/><\/a><\/p>\n<p>So this brings to question.<\/p>\n<ul>\n<li>Will AUDJPY invalidate the divergence set up and target 93.35 and drop to more lows?<\/li>\n<li>Or will AUDJPY invalidate the trend line break method reversing before 93.35?<\/li>\n<li>Or will AUDJPY break to 93.35, and resume its uptrend?<\/li>\n<\/ul>\n<p>As I said, this is quite a puzzle that\u2019s worth keeping an eye on.<\/p>\n<p>The post <a href=\"http:\/\/renkotraders.com\/renko-charts-analysis\/audjpy-renko-analysis-puzzle-making\/\" rel=\"nofollow\">AUDJPY Renko Analysis \u2013 A puzzle in the making<\/a> appeared first on <a href=\"http:\/\/renkotraders.com\" rel=\"nofollow\">Trading with Renko Charts<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/renkotechnicalanalysis\/~4\/9gACOnclEuY\" alt=\"\" width=\"1\" height=\"1\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By RenkoTraders I was a bit too early in my previous analysis of AUDJPY and the trade in fact chugged along to make new highs. That said, I got back to looking at AUDJPY and currently the Renko technical analysis makes for an interesting puzzle, especially if we combine the different strategies mentioned in the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-61309","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/61309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=61309"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/61309\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=61309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=61309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=61309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}