One thing I noticed after switching from candlesticks to Renko is that divergence becomes much easier to read because a lot of the time-based noise disappears.
I don't use divergence as an entry signal by itself, but as a warning that momentum is fading.
For me the most useful situations are:
I don't use divergence as an entry signal by itself, but as a warning that momentum is fading.
For me the most useful situations are:
- RSI divergence near a strong Renko support/resistance zone
- Divergence after an extended one-direction brick run
- Divergence combined with slowing Renko progression
The divergence itself is not the signal. The context around it is what matters.
Curious how others filter false divergence signals on Renko charts.
GDS Renko Research Studying Renko market structure, XAUUSD behavior