Carrying on with my goal of having a nice clean screen: On the previous couple of charts I have posted a simple method I call Red vs Blue. The red and blue bars that the renko crossed were Smoothed Heiken Ashi set at 2,25,3,2. These give a nice indicator of the trend.
The method is simple, if the blocks are above the SHA, the SHA are blue and a blue renko block appears, go long. Under the SHA, the SHA are red and a red block appears, go short.
Works pretty well, gives you a good feel for the trend and you only trade in the direction of the trend at hand.
Here is another similar simple, clean set up:
Renko blocks are 100 (5 digit broker) and the only other indicator is a 200 period Exponential Average applied to close. When the blocks are above the 200EMA go long on a blue block. If the blocks are below the 200EMA, go short on a red block.
Let me know what you think. To me, it is simple, clean and clear. You are trading in the direction of the dominant trend, thus the raising probability of a win. Using 100 pip blocks keeps losers small.
Just started another thread in addition to this one. This one will continue to focus on trading renko with as clean a screen as possible. The other one is as clean as it gets: Trading only price action with renko.
It's Monday already! Where did the weekend go? It seemed to blaze past so fast. I have the day off work today, thought I would make it a bit of a long weekend. Off to the city soon for some shopping then back later on to check in on the charts to see what is going on.
D'oh. Stopped out. I would normally have moved my stop loss to lock in a little bit of profit once that blue block formed after my entry, but I was posting on another thread and missed it. Such is life.
Just got back from being out for a couple of hours. I had set a trailing stop, but it didn't activate for some reason. I now have profit locked, and a target set. Whatever happens, we are walking away with pips tonight!