Are Points and Figure, Heikin-Ashi, or Renko Charts Worth Using?
By Dave Mabe
Here's a reader question from Dean J. (name used with permission):
Dean J.
Do you or have you used different types of charts, such as P&F, Heikin-Ashi, Renko, in trying to create strategies?
Dave:
I've literally never used any of those chart types.
I'm not morally opposed to using them, I just have never felt the need to use anything other than candlestick charts.
Charting is for efficiently visualizing price action.
Anything that complicates that process needs to be viewed skeptically and justified, with your default stance being to exclude anything that adds complexity.
For this reason, my charts are free of any clutter of indicators that don't have a direct impact on a particular strategy.
Similar to indicators, these fancy chart types would simply be a distraction.
Keep your charts as simple as possible, then look closely and try to make them even simpler.
If I thought any of these chart types would give a perspective that would improve a strategy, I would add a column to my column library that captured that perspective instead.
Adding columns to your column library would be a much better use of your time.
Great question, Dean - thanks for sharing with the list!
-Dave
P.S. Do you wish you had a column library that would tell YOU how to make your strategy profitable? My column library is now included with MabeKit