rocky reboot: revisiting rockypoint's renko HA with ema method

This thread is meant as a reboot to rockypoint's excellent thread. The reasons I feel this is warranted are that
1) the original title of rocky's thread described a system that has been left behind and replaced by rockypoint with the system that I and others prefer to the original.
2) This has led to much confusion by those who find recent posts on rocky's thread and then, when they go to page 1 to see what they have missed, it looks nothing like the system we are trading today.
3) The title of rocky's thread doesn't at all align with the current system, and this likely discourages some from checking out the new system because perhaps they looked into the original system years ago and found it not to their liking.
4) I believe the current system is robust, and some of those who might be looking for system that may or may not prove to be the basis of a consistently profitable methodology might find it worth studying but given the current bifurcated nature of rocky's thread and the length of it might miss being exposed to this great methodology.

Rockypoint's thread can be found here, and the first 112 pages are devoted primarily to the original system, which will NOT be a subject of this "rocky reboot" thread.
Williams%R, SAR X-over 15 minute candles | Forex Factory

The system we will be working with in this thread in the latest rockypoint system, which rocky first introduced with this post:
Williams%R, SAR X-over 15 minute candles | Page 112 | Forex Factory

I use Ninjatrader for my broker and trading platform. Here is my chart from today showing the entry and target on a long EURUSD trade using the 6E, which is the US futures contract that tracks the EURUSD:



For those who use MT4, you can find the rocky template indicators in thsi post from LiboCop:
Williams%R, SAR X-over 15 minute candles | Page 204 | Forex Factory

For those who use MT5, the indi's for the rocky template can be found in this post from LiboCop:
Williams%R, SAR X-over 15 minute candles | Page 183 | Forex Factory

For Ninjatrader, the main indicator you will need is the Heikin-Ashi indi, which can be downloaded for Free from this source:
Heiken Ashi 8 - NinjaTrader Ecosystem

All the indicators I use on Ninjatrader are Free except for the "MA Crossover by Ninza" which for this system I use only for its "cloud" function, and it is completely unnecessary. I use it for purely aesthetic reasons, and I do not suggest anyone go and buy it for this system. I am not affiliated in anyway with the author of that indi. Here is my complete list of indicators, highlighted in yellow, as I use the rocky system as of June 29, 2023:


You do not need all of these. I have been working on the rocky system for almost a year (maybe a bit longer) and as with any system, I have experimented and added things that I like to use. I encourage anyone who wishes to participate in this thread to likewise experiment and add his or her own customizations to the system if doing so makes trading more comfortable and profitable for you. However ... (there had to be a "however," right?).

However, all you need for this system is ...
1) two exponential moving averages: The 8 ema of the high and the 8 ema of the low, which creates an ema band; and
2) the ability to apply Heikin-Ashi candles to a Renko chart.
These are all free to both Ninjatrader users and MT4 & MT5 users.

I would suggest that if you are new to this rocky system, that you first work on it at its most basic and rudimentary level: Use just the 5 brick renko with Heikin Ashi applied, and the 8 ema bands. rocky uses a swing indicator that highlights short ter support and resistance, and many might find that indicator would be helpful to include right from the beginning as well.

I am not an expert on this or any system. I do not believe that my approach to rocky's system is the best and only way by any means. I welcome experimentation and innovation. If you were to compare my chart pictured above with one of rocky's charts, you will see that I have not been shy about adding various indi's and components. However, anyone familiar with rocky's method would immediately recognize that my chart is 100% based on his method.

I encourage you to trade the market you are most comfortable trading. I only ask that whatever changes you make to the system, that you you do not deviate from the Renko with Heikin Ashi and the ema bands. If you wish to change the settings of the Renko or the ema's that is fine. The only thing I ask is that whatever changes any of us do make, that the result is a system that is still immediately recognizable as the rocky Renko/Heikin-Ashi with ema bands system.

Finally, I wish to thank rockypoint for sharing this system with us, and I hope that going forward that he'll participate here with us as his schedule and trading allow. All credit to him for this system. I am just a follower and take no credit whatsoever. I have nothing but gratitude for rocky and his efforts to help his fellow traders here at FF.

EDIT: This is a very good thread here at FF that has similarities to the method in this thread. Highly recommend:
Roadmap - A Way To Read Markets | Forex Factory

Also by LauraT:
Just A Journal | Forex Factory

I will soon provide an explanation of the various indicators on my chart and how I use them to help me trade the rocky method here.

Here is my current rocky template with all the indicators I personally use with the exception of the swing indi, which is auto draws short term support and resistance. I often times turn it off as the chart can become very cluttered with lines.



The pivotal points I have marked are:
The Daily Open
Yesterday's High and Yesterday's Low
Last Week's High and Last Week's Low

The blue ema band is the 34 ema high-low, and the magenta ema band is the rocky 8 ema high-low

I use the 34 ema as a trend indicator: prefer long signals when 8 ema's and price are above the 34 ema's, and prefer short short signals when 8 mea's and price are below the 34 ema's. I say "prefer, because if price gives a buy signal from a pivotal point, I will take the long. For example, if price gives an 8 ema buy signal from last week's low, I will take the long, even if price and/or the 8 ema's are all still below the 34 ema's.

Similarly, if price gives a sell signal from a pivotal point, I will take the short.

The yellow shaded area is my trading time frame: I take trades from 8:00 AM EST and do not enter any additional trades after 12:00 PM EST. This is basically what is considered the NY open through the 30 minute post-London close.

I typically take no more than two trades per day: If the first trade is a full profit of 25 ticks or more, I am done for the day. If the first trade is a loss, or results in less than a 25 tick profit, I will take a second signal if I get one. After that second trade, win or lose, whatever my profit or loss for the day, I am done until the next morning.

rocky

Best wishes Vidvad with the thread. I will follow along with great interest.

It's really your thread, rocky. I'm just the secretary!

vidvad, Subscribed, as also using this methodology with more personal approach.

Most of the issues are with MT4 and MT5 Renko placement on the chart. I tried with MT5, it does not work properly(something with the ticks not being kept in history) and it is not the same as with Ninjatrader.

Do you think you can find a way to use it without Renko?

A fuller view of my chart

rocky, I believe, uses the method on Think or Swim platform sometimes using range bars as Think or Swim won't apply H-A to renko. I don't even know if ToS offers Renko.

Have you tried using regular range bars?

It is not the same without Renko as MAs are screwed up, but I will follow alone.

Best of luck with the new thread Vidvad! Interesting to note that you're not using any kind of filter, such as ADX?

Well, I do use "filters," so to speak. As noted above, I added the 34 ema bands to the 8 ema bands, and typically will not enter a long trade unless the price at entry will be above the 34 ema high. Also, the pivotal points are VERY important to me. In today's case, I am long as price had a failed breakout BELOW last week's
low, AND then price had a long entry ABOVE the 34 ema's.

+25 ticks in the bank and an early start to the weekend. I narrowed the candles to show the entry and exit fills. These fills are plotted by the trading platform. I do not annotate them myself.




This is what the profit is when I trade one 6E (EURUSD contract) and close with 25 ticks of profit with one trade after commissions. Not getting rich by any means. But my goal this year is to develop rock solid discipline and then size my trades upward. Easier said than done, as I'm sure many of you have discovered for yourselves.




This is how the chart looks as I trade. The above chart I narrowed the candles to show the trade platform trade executions better. I like it best when the candles are at this width.

I wish I could help you but I'm just not at all familiar with the MT4 or MT5 platforms. Have you reached out to LiboCop in rocky's thread or through a private message? He might be able to help figure out how to fix the problem you're experiencing?

Here is the M60 chart and how I configure it to serve as a reference while trading the rocky ema system. I will also use this same chart template and track the M15 as well during the New York session (8:00 AM to 12:00 PM EDT/EST). I started tracking these levels when I became interested in the work of Stacey Burke.

Now the EU has failed the breakouts of both last week's low and yesterday's low, we should expect price to pump up to Yesterday's high, and above there, even last week's high.

The Stacey Burke Method is NOT the method I am showing here in this thread. However, I will show these charts from time to time as I believe they are an additional source of solid context analysis. Also, once I reach a larger trade size (current goal is 10 contracts), then on days like today, where there is a real "pump" set up potential, I'd like to take 1/2 of the position off at the daily 25 tick target, and then let the other 1/2 run with a trailing stop, targeting profits at yesterday's high and even last week's high.

Good Trades for you, nice..As you show 1 Hour TF, here are my last 2 trades(2 days) using MA Channels for CFD US30 on 1 Hour TF. One Loss and One large win for total of +4% of the account

Technique is different and I am not showing much of it on the image below, but main idea of the Channels is the same.

I talked to LiboCop, MT5 will not work correctly with Renko. While my larger trades are going, I do not mind picking up some smaller trades like you are showing here.

Price "rippin' and reachin'" for yesterday's high. I did not take the second entry that I annotated on the chart. The entry is similar to the initial entry that I did take. The Heikin-Ashi candles print a little "micro" double top, and then a new candle closes above the double top. I enter with a quick market order when that candle closes if I am watching. If I am late and the trade has already triggered. I will set a limit order to one tick above the double top. This morning I had to enter with a limit order as the trade triggered before I got to my desk.

My own personal trading plan is: Take the first trade, and if the first trade is a full 25 tick profit, I am done for the day. If the first trade is a loss or if it is less than a full 25 tick profit, then I may take a second trade if a set up presents itself. After the second trade, no matter the result or my total profit or loss for the day, I am done for the day. This prevents FOMO, over-trading, and a whole host of trading errors that has held me back.

Pullback to the 8ema band, then bull doji, then bull candle (candle after doji). If this second candle after the bull doji closes as a bull candle, that is a new buy signal, and I would be ready with a market order to go in instantly long.

New long signal triggered ... target as noted this morning is at least yesterday's high.

You will find that most people here, on FF, i would say more than 80% most likely using MT4 or MT5. You may want to look into MT4, MT5 if you would like more interactive thread. Here is how your entries look(approximate) on EU6U23 MT5 5 Min TF using HA Candles

Thanks for the heads up. If someone is interested, he shouldn't let the difference in trading platforms discourage him.