Renko Trading Discussion

Im new with renko trading. Is it possible that you might have a renko moving average crossover ea

I haven't looked through every page on this thread but it seems most peopple are using renko charts on mt4/5.
Is anyone trading using the renko charts on trading view? Where you can incorporate time and ATR into the chart bricks?
I find them much better than the pure/traditional renko charts.

I tried the Tradingview Renko and it was quite frustrating, could you demonstrate how it works so we can learn?

The tradingview renko is a bit confusing the 1st time you use it, and one drawback is that you need a paid subscription to be able to use it properly.
It defaults to the ATR brick size setting, this means if you open a renko chart and set the timeframe to 1 hour, it will set the renko brick size to whatever the current ATR value is on the 1 hour candlestick chart. There's plenty of youtube video's explaining all this. I take the ATR value and then change the chart to 'Traditional' and use the same brick size.
Anyway, I use it mainly as a direction filter but I have built a few strategies around it too.

For example, below chart is gbp/usd from the last couple of months. The current ATR value for 1 hour is 20 pips, so the chart is set to Traditional with 20 pip brick size and 1 hour timeframe. The difference is that new renko bricks will only be printed at the close of every 1 hour candle, unlike pure renko charts which print new bricks solely on price movement regardless of any time aspect. Including a timeframe into the renko equation makes the price action alot smoother and I find the signals to be more reliable compared to a candlestick chart.
I made a simple indicator which I call a Fractal Break, the red and green arrows simply show when the most recent fractal up or down was broken. As soon as this happens that is my direction bias until a new arrow appears. I will look for trades on a candlestick chart when a new arrow appears, or later when renko flips from bearish to bullish or vice-versa while still being in agreement with the fractal indicator direction.


Here a couple of strategy examples, use an offset Donchian channel as a breakout and stop loss indicator...




or just a simple cross/bounce of a moving average....




I believe simple is best :-) and also I'm a single parent with a full-time job so I need strategies where I don't need to be in front of a screen all day and I can just act on signal alerts.
There are some nuances with this kind of chart, sometimes more than 1 brick will be printed at once, after a news event for example, so you need to use some discretion too. My stops will be in the region of 2-3 renko bricks, so basically you can only lose small, and the wins will vary from small to huge.

DAX long, +103 pips, 15 pip bricks:

Hi Bandajulian9, You asked a question in response to one of my posts last week - apologies I completely missed it! I don't have an EA that you are looking for. If you are new to Renko you might want to start out going completely naked (?) - I mean no indis or EAs. I think I've tried most indicators on Renko but come to the conclusion there is more information to be had without them. Less is more, or as Piprocket73 said - "simple is best". Cheers, Dave

DAX short BE +2. 15 pip bricks. Missed the morning session, nice open long at 19100 I think would have been worth a punt:

DAX long from 19153, managed 28 pips then reversed convincingly so closed for +3, which is just as well. 15 pip bricks:

Approximately 280 pip short on the DAX from London open, now in some slow consolidaion from which I have managed to extract +13 pips it will break but I'm bored with this, enough!

This mornings effort; DAX short +31 pips. (opened trade at 18999.9) Given how whippy the DAX was this morning I should have closed it at 18900 for ~ 98 pips, but I thought it would extend past 18900 to find support 20 pips below - hey ho. 15 pip bricks:

Hello David,
I hope you are well. Its good to see your charts. Did you take 2 lines intersect, the horizontal resistance and the tops of the highs descending and choose that as entry point ?
Also is your normal renko 15.
thank you,
PG

Hi PG, thanks for your comment.I always use 15 pip bricks for DAX, although I do occasionally look at a 10 pip chart. 15 pips is probably too big to trade of for most currencies, but might be useful as a "1H/4H" chart equivalent, maybe.

I've expanded the chart; As you can see a reverse brick dropped through the 19000 level, then tested that level before forming the next brick. It then tested it a second time before dropping to the 18950 level (DG3) which is often an S/R level on the DAX. It tested 19000 a 3rd time on the reverse brick which is where I opened (virtual 10 pip SL). The green line below 18900 is 18875 which is a potential support zone (unfortunately off this chart shot) which is what I was aiming for. I got it to 100 pips short, went to do something, and when I came back the market had done a rapid retrace, so I panicked and closed it, which on reflection probably wasn't too bad. Sorry for the long-winded detail, I hope this helps. Cheers Dave

it helps a lot. I signed up to a 'teacher ' (I'm wincing) who advocated SR levels and it all made sense but realtime live it just fell to pieces.

I know you have been posting for a while and DAX renko is something I am most comfortable with. tended to review on box size of 1000 (I call that 10).

Will be here regularly now as of next week

Hi PG,
Looking forward to it, I don't post everyday because of other commitments - I should really concentrate more like I wasn't today but I am trying to do it more often again after a break for a while. It is very difficult to follow someones "teachings" - I have also been there a long time ago and it didn't have a great outcome - I wouldn't presume to teach anyone about trading! I just post a few trades and if they are useful to someone for ideas then that's a good thing. This thread is a secluded spot away from some of the madness and posturing of other threads, looking forward to your posts! Cheers, Dave

helo david,

Very interesting with your renko trading consistency here. But I still couldn't figure out your entries based on.
Do you use SL? How many bricks is your stop loss? Because I saw your entries here, many of them will touch your SL if you use only one brick SL.
What is your renko setting price? bid, ask or (bid+ask)/2. Did you change setting if you are going to buy or sell?

Best

I'm finally giving the Non-Gap Renko a try, I like the way it spots divergence. Everyday is replete with winning Divergence signals

Hi Sixs, thanks for your comment. I'm very selective about the trades I take, my entries are based on tests of various levels, usually three tests and tend to focus around major numbers. I don't use an SL, I apply a "virtual" SL of 10-15 bricks. I only trade the DAX, and I find that you can "get to know" what the intention of the market is - which is why I pull out of a trade very early if I am not happy with the development of the trade. Once I've got a reverse brick (30 pips, or near enough) in place I apply a SL at BE and go from there - its either going to go or it isn't! I don't get too many stops, although yesterday I took -6 hit, which was the right decision as it turned out, then a +9 win, hardly worth posting. Not a massive amount of movement on the DAX yesterday.
I use bid/ask/2 always, is there an advantage of changing it given that the spread on the DAX (for me) is quite small? Hope this helps, Dave

Slow DAX at 10am (UK) ~200 pip channel of S/R, 15 pip bricks. Back later

2 x buy orders today. On demo so probably would not have taken second on live account. Closed half at +9, SL to BE and trailing so its a free trade now.

A new strategy I am testing so caution would have been becuase its at the 19400 level. In fairness anyone could have opened a buy today and got a result.

I was a little disconnected but we are closing the month with these two entries my forex strength strategy and renko candles.
I had this account with 10 dollars and I hope to close it with at least 50 dollars of profit.