Regular renko favors the trend and what you are asking for favors consolidation, so what you’ll get will look very different than what you see on your picture.
How about the Pope?
You seem to start veering off the path of decency a bit and maybe you should just reign in your loose mouth and concentrate on your trading.
The best advice is to think before you speak. Consider how it comes across to the reader. What comes naturally between friends, does not when you write a letter to the public.
I accept your apology, but you should really apologise to Matt for having tarnished his Thread. He is a great guy and will forgive you no doubt.
No context with the previous messages but I took some time to read many threads by Matt, and tried backtesting. However when backtesting MT7_RenkoMetaRsiEA.ex4 featured in the first post of this thread, I get the following error :
AND FINALLY, THE DAWN IS ABOUT TO BREAK ON THE ARRIVAL OF OUR BRILLIANT MENTOR AFTER A WELL-DESERVED REST.
WELCOME BACK Matt7 - I am sure you are brimming with ideas and keen to share them.
In your absence, an equally gifted friend of mine ( Engineering qualification ) shared an idea with me and I want you to see this before anything else takes precedence in your schedule, please.
I asked him to put it into his own words so that nothing gets lost and this is what he wrote:
I would like to know whether one can produce an "indicator" (what I call an indicator is technically an EA for MT4, anyway), which compresses all your bricks in order to filter false reversal signals.
I mean (and for such a purpose, I guess my picture will clarify what I am trying to ask you), in this Renko representation, you will have single bricks which confirm a trend and double bricks which give a signal of reversal and obviously of range as well... So is it possible for you to make two consecutive double bricks cancel each other such as represented in the picture attached?
I am sure it is not that simple but when you compare the upper chart and the lower chart, you will note that the second filter much better false reversals and it could drastically change the behaviour of many indicators... The way to process it as a Non-gap or a Rail to rail representation is up to you of course.
So, dear Matt, this seems the right challenge at the start of a new trading year?
Looking forward to hearing from you with bated breath at your kind convenience.
I haven't had time to read this entire thread so I hope we can still introduce new ideas. What I have read on this thread looks like it has focused more on short term scalping and completely automated EA's.
I have been manually demo trading this strategy but since it depends on longer term trades and entries that can happen 24 hours a day it has been a struggle. When I focus I can do pretty good. If the EA would just take all trades I could manage them and I believe be pretty successful. I have paid 2 programmer's a couple hundred bucks but they both quit on me prior to finishing the EA Below. Currently it does not take trades.
I would be more than willing to contribute to anyone willing to get this thing working. I would also love input on any modification I can make to improve this strategy. I do not want to junk it up with crazy indicators or complicated ideas. I believe the entries and filters I do have could be very successful with proper money management.
Here is a Chart and the inputs on the currently nonworking EA.
ja_The_Legacy_Trader_Notifications (Provides Indicator on the Chart and notifications of "Change of Trend"
MA In Color w applied Price (Used as a filter and to frame up price a bit) 20 simple or EMA
15 to 25 pip brick size. I have manually back tested both.
The basic idea is to use the Legacy Trader (Modified Parabolic Sar) for entries.
Stop loss either at the Dot of the Legacy Trader Signal or some point past it. (see EA Inputs)
Or Fixed Stop loss. I have been using the ATR as a reference.
Money Management your preference. (I like to take 50% off at 1 to 1, Break Even then trail the second half of the trade by a little more than 1 brick.
If I get stopped I may re-enter in the direction of the trade when the first brick prints in the direction of the trade. (See Screenshot for retrace entry).
I think to be successful with this strategy it will have to be a combination of auto entries, auto trade management IE Partial Close, BE and Trailing Stop. Then some judgement for filtering trades.
I use the 20 moving average to avoid obvious areas of congestion. I also check the daily charts to find these areas. A few trend lines are also used to avoid congestion. There are times I will only take buys above the MA and Sells below. Or draw a box around congestion and wait for a break out.
One idea I have had is for the EA to have a setting to turn off auto trades if it takes x amount of losses in x amount of bricks or inside of x range. IE when a loss is taken the EA counts that price level and won't take another trade within x pips from the loss. Or counts back and avoids trades if the Legacy Trader has signaled within x range of bricks. I would also be fine with just shutting off auto trading and sending a notification so I can get to the chart and set up a break out trade.
I wrote this up pretty quick so hopefully it makes sense. I would love to discuss it further. Please tell me if I'm crazy. I know there is nothing revolutionary here but that was by design. I think keeping it as simple and clean as possible is the way to go.
As will all systems this will take loses but remember with the higher brick size the majority of these trades go well into profit. On the chart above each brick is 25 pips.
MA in Color_wAppliedPrice.ex4
MA in Color_wAppliedPrice.mq4
I ran out of space on the previous post for attachments.
I use the Alerter indicator to send a push Notification if price hits a line drawn on the chart. Someone here made this for me long ago and its been one of the best tools I have.
Just change draw a line on the chart and change the description to alert_1 and when price gets within 1 pip of the line it will send a push notification.
Alerter - dzf.ex4
Alerter - dzf.mq4
Anyone using Renko to identify and trade S&D zones? Interested in sharing ideas, Cheers, Dave
The same price movement that makes candle sticks or bar charts generates the Renko Bricks. The main difference is there is only a new Renko brick generated when price changes by your Renko Brick pip size. Where as bar and candlestick charts are generated by the time period you choose.
Basic answer is the same support and resistance zones appear on all chart types since they are identified by price. How you are using the chart is very valid. I believe it is a little easier to find good zones on Renko Charts. They tend to print more historical price data on the screen especially at higher brick sizes and since it lays out in a grid ie the size of your bricks it is very easy to identify good zones.
Many thanks for your reply. I've traded S&D zones on H1 bar charts in the past but wanted to see if it might be applicable to Renko. When I started to learn about S&D zones I read that there can be many zones during the day that are not always easy to identify. I don't know if the author was correct in stating that, but if that statement is correct then maybe Renko is better at identifying "micro" S&D zones (at small brick size) that aren't so obvious on H1/H4 charts.
I haven't compared my results with an H1 chart yet so I can't really comment on any correlation. I'm a bit besotted with the DAX at the moment so I haven't tried this on any currency pairs!
Best wishes, Dave
Found a very nice indicator in which to apply to renko. Its a sort of moving average half trend but faster.
Ive been using a HMA trend filter change settings to 89 & 1
Enter a soon as the dot appears. or wait for candle close optional but not quite as fast & follow the trend
Be good to see what you guys could create with this one
T3 high-low activator mtf 1.01.mq4
Hull moving average speed control.mq4
Your system looks easy to make. Only question, when do you exit? Is your plan to have an "buy-sell" "sell-buy" program?
Also, do you wait for brick to close? This would mean that the buys and sells will lag by one brick.
In this example, would you want it to close once the trend indicator (with dots) changes. Or when your long term line changes? This can close ALL trades, and you should have a net profit.
In essence, an exit indicator would be a good filter. If you do "exit when new opposite brick forms" then you won't be able to stack.
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