Renkology

Of course if we use bigger bricks we will hear fewer gongs, and make a lot more pips off the same type of SETUP structure.

The idea of Renko is to reduce noise and bigger bricks are a great help there. Yes it means fewer signals. Quality is
always a rare commodity though.

Here we go from a bullish gong to a bearish gong.

E line and U line trades were also available.

Yes I prefer 10 brick size for trading DAX, whereas 5 looks better for GBPUSD and EURUSD.

Handy, most people seem to prefer a ten pip brick. Our brains are wired to deal with tens. We will come back to that later nd discuss the pros and cons of it.

I Noticed an opportunity in the charts that you posted to point out a basic feature of SETUP analysis,; the wheels within wheels, waves within waves curse of Elliott Wave.

To illustrate this, I am going to use three brick-frame views of the same chart. I will start with a 50 point size brick and do the standard SE analysis that reveals a SETUP.

50 point chart.

Attached Image (click to enlarge)

Now let's change our view to a 100 point brick chart and see what the 50 SETUP looks like on that chart.

100 point chart.

Attached Image (click to enlarge)

Let's double it again and go to a 200 point brick chart, still keeping an eye on that SETUP.

200 point chart.

Attached Image (click to enlarge)

Note that you will have to adjust the lines as MT4 moves them when you change time frames or brick frames.
A trend line is not locked to a high or low and you often have to manually realign them.

Study the three charts. there are 3 E lines visible: E, e and E.

The last E line, the green one, is drawn from a wick, which is the E of a smaller brick frame.

This shows us that when we get an opposing wick, (which is of course the T of a SETUP) we can immediately
look for a wick in that structure and locate a wick E line.

Implications?

The wick E line allows us to dial in to the closest entry that we can find.

You will find this structure in any opposing wick, which is a T of some degree.

If you look at the M1 chart you can find an even closer entry on the M1 SETUP.

Some of the wick E lines are easy to pick out others take practice and dialing in and out of different brick frames.

Again it takes practice to train your eye . Always the practice.

So go practice, Pick any brick frame and dial in and out until you get focus on the different degrees of E Lines.
Train your eye to recognize the wick E lines.

Guarantee: master this and you will see SETUP and wick E lines with ease and be far, far, ahead of what other people see in a chart.

Part Five. The Gong Show.

Hopefully you have managed to install the Gong indicator and you have had a chance to play with it.

You can turn on messages and turn off sound, if you are not into the Gong sound.

I personally like the Gong sound alert because it is distinctive and it allows me to do other things while I wait
for that opposing wick and its T to arrive. No need to sit and watch a chart.

My wife laughs when the "Gong" sounds. I laugh when another opportunity, to pick up a very high probability trade, announces itself.

As you study Gong Alert and look for Wick E lines (and other E lines of course) check and see how many Gong Alerts
actually allow you to trade at least one brick beyond the brick with the opposing wick.

We will look at those next. Not all Gongs are profitable, with a bit of support from AO, AO divergence, AC and the Blue Jaws Line of the
Alligator we can really improve our odds on an opposing wick signal. Odds that are already pretty good to start with.

Remember, we want to get one brick beyond the brick with the opposing wick.

Check your charts and focus on the opposing wicks that don't give you that one brick target. Gong will do a pretty good of locating and
marking the opposing wicks.

Do some stats and see how many Gong Trades work without any further analysis on brick frame of your choice.

Train your eye on Wick E lines as you work at this. The more you do the easier it gets as you burn a new circuit into your brain.

Here is a 5 Pip profile for Gong Trading.



All you have to do is be within hearing range of your computer. When you hear a Gong alert, you check to see if the signal agrees with your S E analysis and decide if you want to take a trade or not. Also be on the lookout for E to S trades which will be triggered at an E level with an opposing wick, break of the wick trend line or even the wick E line.

I took a couple of small trades on the GBPUSD and the USDCAD, then I got called away to work.
(My EURUSD is down from testing another method.)

SO why take these small trades?

Two reasons:

The Gong alerts you to opportunities but you need to check all of the tools, AO,AC, Jaws Line and so on so that you only take the best trades.
(Always the practice.)

Small trades can lead to bigger ones such as an E to S opportunity and they build up your capital.

Add profits form a few small trades and when you see a big sure-thing trade you can risk the money that the market has given you with a bigger position.
Always try to use the market's money rather than your own.
There are entire strategies designed to help with that concept.

As for the profile, if you have different Renko generators besides Ovo products you will have to develop your own profile file. This takes up a fair bit of your computers horsepower but it is a neat way to trade multiple Renko Charts without having to jump around from one to other all the time to see if anything's happening.

You may have noticed on the last chart that the bar colors are green when AO ands AC are both green and ged when AO and AC are both red.
When AO and AC (Momentum and acceleration) are out of synch the bricks are grey.

If you get a Gong and its direction agrees with both the AO and AC colors, it is pretty much a sure thing.

The indicator is a Bill Williams indicator that identifies the Zone.

BW Zone is attached.

Pretty Much Agree by your Quote here Wab, "Learning new stuff makes my brain hurt"... i m on it

Point taken kd1. I have put a lot of info up here l already. This far, I would hope that anyone following along is able to spot the S E structure and find the SETUP structures. If you are able to get the Gong indicator working on your offline Renko charts, check it our each time you get a gong sound, If you have six open Renko charts as I illustrated in post 125 you will have lots of alerts to respond to.

On that note, I am going to post two different brick frames of the same pair. The lower brick frame gives you 42 gongs, while the higher brick frame gives you only 1 single gong alert.

I call it "One Gong to rule them all."

Both charts start at the same low and I have shown the 50 brick E line on the 200 brick chart. Both charts how the same 32 hours since that bottom Gong alert sounded.



Now think about this. Are you finding life happy with 42 alerts that require you take make a decision, or just One?

You can scalp the 5 pip or or 10 pip bricks using the Gong alerts, or you can enter an enormous trade using a lower brick frame E line when it coincides with the higher brick frame Gong Alert.

Best of all, is in this instance, we had an E to S trade and look how many 200 pip bricks that caught.

Furthermore: if you entered a trade at every new 200 point brick and just went the distance to the top of the next 200 point brick, that alone is an interesting thought.

The grid is a 100 point grid which is a handy reference between the two brick frames. Keep the grid on your charts, get used to it. Grid will soon become a very important part of our bigger strategy.

honestly saying Wab i have already read this thread twice and now again starting to page 1 and i know its worth giving time to such huge ocean of knowledge base.... Appriciate your efforts and the way you are trying to clarifiy this method ....

can you share the latest template which incluedes gong/zig zag and every stuff that you have just shown on above chart.. i have downloaded everything but it seems like few things are missed for my end...

Thanks Again

#Peace

kf1, the up -to-date template for the offline charts is now attached on the first post.

Time permitting, I will give examples of its' use this week. I know it's a steep learning curve so it's time to give lots of chart examples.
Once we get some charts up, it will get easier to spot the patterns we will use.

Thanks to everyone who is still on board. If you have hung in this far, your work is about to start paying off.

Thanks Wab

This is how my Updated Renkology Chart looks like... i have removed few things which doest suites my eyes like profit tracker, hotkeys shortcuts .. please lemme know wab if i m missing something crucial here..

I am using 10 Pips Box here on my every chart... Gong is Working like a Real "GONG"... its time to train our eyes to find good/Correct "SETUP"

Thanks Again Wab

#Peace

Looks good kd1.

You might want to adjust the displacement on the gong arrow to make it it a bit easier to see the wick end. I have mine set to 0.2.

Thanks for Responding Wab...I m using default setting for GONG and arrow displacement set to 0.2 already...may be due to screen resolution it looks like this....

#Peace

All right. Lets look at a live chart.
We will use all the tools we have so far.


Prospector and Off Line Renko.

And off we go. A classic break of the lower triangle line, with a pullback to test it on the M5 chart.



Is this a good trade? My only reservation is the Jaws line (blue moving average.)

We might just bounce off that line, if we break it in style, I will add another trade.

Monitoring the potential E line on the M5 chart.

Note how the green wick line is drawn through each successive wick on the Renko Chart.

We will move the potential E line when we get a new low and verify our new E.

And we move the tend line on the M5 chart to match the new potential E line.
The second trade is also opened with a sell stop order as we move through Jaws.

Attached Image (click to enlarge)

While I wait to move the potential E line again, A few things to look at.

On the M5 Chart I have added the full Alligator. If you are a scalper, the lips (green line) of the Alligator, makes a good trailing stop.
Mostly I monitor the blue Jaws line as it is the balance line and has a special place on the chart structure.
There are whole threads devoted to balance line trades. Sadly, none of them with balance line on Renko Charts. (at least none that I have found.)

On the offline Renko chart, I have just added the Gong alert. It will sound off when we get an opposing wick.

I will continue to redraw the tend line on the M5 chart as each new potential E line arrives.

If you have very sharp eyes, you may see that I have adjusted that trend line slightly at the last potential E line.
This is necessary form time to time, if the next bar is a bit our of phase. Be area of that as it can be quite significant.

The Stop: I am keeping it two bricks back on the offline Renko Chart.

The big picture is always important. Don't forget to zoom out and check it.