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Price Action/Renko systems

  • #1
  • First Post: Edited 7:44am Jan 10, 2013 7:12am | Edited 7:44am
This thread is for the experienced and not for the rookie, however rookies are welcome to contribute what findings they have, but moreover to share what has/is working using price action. Of course many of us can learn quickly from peoples achievements here so that the wheel is not reinvented.
I'm going to point out few things from my extensive experience using renko/price charts etc as well as my mathematical knowledge and that is:

1) Trading is all about price movement and how much if any you can predict price movement. So either time charts or renko charts can show this in different number planes.

2) Most if not all indicators are based on moving averages and sometimes moving average of moving averages etc with colours added and other bells and whistles. So rather than using any indicator I use the most suitable moving average which I find that work best on the renko chart I am using but perhaps this will vary for other renko chart sizes.

3) Nothing works 100% of the time, as long as the percentage is well on your side (at least greater than 55% or so) I believe you're heading in the right direction. If you are not using a SL then throw away the system or refine it because it is destructive in the long term, of course in the short term it looks perfect when a SL isn't used. This being said before designing a system ensure the mathematics is on your side and it's not just a guess on what you think might work etc. Do lots of testing and analysing using various situations and keep the system SIMPLE.

Feel free to add suggestions or factual findings.
  • #2
  • Jan 10, 2013 3:05pm Jan 10, 2013 3:05pm
hi

i am using renko with good success since one year .
everything is clearer , trend, range, breakouts, s/r .

i have a simple ea that open a buy if the candle is a "up" one and viceversa .
i use this on the currency ring ...

eurjpy only buy
eurusd only sell
usdjpy only buy

no sl ...we stack position until in profit , and sooner or later it will profit .
I don't have time to stare at the screen many hours, but if i could do it, i would certainly trade a 9 ema on a 20pips renko box chart .
of course i would like to know something about your way of working with renko....but please , don't put lots of indicators on a renko chart that is a good indicator itself....
  • #3
  • Jan 10, 2013 5:57pm Jan 10, 2013 5:57pm
Hi
I am about to run an EA using renko's and will post results. But I agree with you on everything except SL but I can see you are hedging instead of a SL whihc in effect works the same way.
Also I don't recommend too many MA I only use 3.. a long range and two short range for entrance.
I will post a pic or two later on to show how accurate in predicting a turning point using renko, keeping in mind I am only using MA so there is no repainting or anything else.

Tell me more about your strategy because to me you're basing your entry on one bar only.

Cheers
  • #4
  • Jan 16, 2013 4:19pm Jan 16, 2013 4:19pm
hi i've already download renko chart EA and follow the instructions. But why the chart on M2 is still offline. Can anybody help me about this...
Attached Image (click to enlarge)
Click to Enlarge Name: renko chart.jpg Size: 132 KB
  • #5
  • Jan 17, 2013 3:05am Jan 17, 2013 3:05am
It will always be called offline but it actually is online and is active. Why? Isnt yours active and having ticks updated regularly?
  • #6
  • Jan 19, 2013 4:36am Jan 19, 2013 4:36am
Could you please post the Renko chart EA you are using with the instructions. I assume this is a live chart with regular tick updates ?

I've been looking for a thread regarding live Renko charts as I have a few ideas I want to test out so hopefully this could be the place :-)
  • #7
  • Edited 1:53pm Jan 19, 2013 10:47am | Edited 1:53pm
Quoting Willowgal
Could you please post the Renko chart EA you are using with the instructions. I assume this is a live chart with regular tick updates ?

I've been looking for a thread regarding live Renko charts as I have a few ideas I want to test out so hopefully this could be the place :-)
Hi Willowgal..
I'm thousands of kilometres away from my server so I canno't post you the Renko chart v3.2 EA now, unless you want to wait but if you search for it you should easily find it on many sites. Look only for the v3.2 the rest are crap. They should also have instructions otherwise I'll help you with this.
  • #8
  • Jan 19, 2013 12:39pm Jan 19, 2013 12:39pm
I tried messing around with renko charts around a year ago, as they make it relatively easy to see important support and resistance zones. However, one thing I notice that renko charts obviously cannot display is the factor of time. With regards to price action, I find time to be a critical aspect of analysis. How can you tell whether a level was strongly rejected using a renko chart? How can you tell whether price has found a new equilibrium right underneath the chart?
  • #9
  • Jan 19, 2013 2:24pm Jan 19, 2013 2:24pm
I did exactly what you did Kanzler about 3 years ago and turned off them. I am back to them and will not look back. Now I understand them much better and how they operate but back then my understandig of renko's was very little.

In trading one is looking for a direction and time is irrelevant. I have developed my own indicators to use which suit my needs. With these I can predict reversals or turns about 60% of the time but the best thing is that where a normal indicator like stochastic or MACD is in overbought/oversold my indicator applied to price chart can show me some of the fake resistance/support level.

PM me for more info only if you're interested.
  • #10
  • Jan 19, 2013 2:47pm Jan 19, 2013 2:47pm
Quoting tradability
I did exactly what you did Kanzler about 3 years ago and turned off them. I am back to them and will not look back. Now I understand them much better and how they operate but back then my understandig of renko's was very little.

In trading one is looking for a direction and time is irrelevant. I have developed my own indicators to use which suit my needs. With these I can predict reversals or turns about 60% of the time but the best thing is that where a normal indicator like stochastic or MACD is in overbought/oversold my indicator applied to...
I appreciate your reply, but I still don't understand why anybody would want to do this. It's like looking through a pair of glasses when you can see perfectly fine without the glasses. Most of the indicators factor time into their results, so you're basically just using the renko to define the zones but you can do this with a regular bar or candle chart the same way, although with a candle/bar chart you at least get an idea of whether or not a level was supported or rejected quickly by the wicks. Don't get me wrong, I love the aesthetic appeal of renko charts, but I just have a hard time believing there's any real advantage if you know what you're looking for in the first place.
  • #11
  • Jan 20, 2013 1:31am Jan 20, 2013 1:31am
Quoting Kanzler
I appreciate your reply, but I still don't understand why anybody would want to do this. It's like looking through a pair of glasses when you can see perfectly fine without the glasses. Most of the indicators factor time into their results, so you're basically just using the renko to define the zones but you can do this with a regular bar or candle chart the same way, although with a candle/bar chart you at least get an idea of whether or not a level was supported or rejected quickly by the wicks. Don't get me wrong, I love the aesthetic appeal...
I've been where you have long ago and thought the same as you are now. Your lack of understanding of renko leads you to believe what you said which is what I used to think too. Perhaps if you saw my indicator now and understood how to trade it your opinion would change, but stick to what you know best which is time charts, but I don't understand why your here then.

Think about this though...where your indicators (which in my opinions are crappy no offence but the majority of indicators are created using moving averages with the creators preferences) show you shorts and mine show longs which will be correct? Line yours up against mine and see the difference anytime any currency!
  • #12
  • Jan 20, 2013 1:57am Jan 20, 2013 1:57am
Quoting tradability
I've been where you have long ago and thought the same as you are now. Your lack of understanding of renko leads you to believe what you said which is what I used to think too. Perhaps if you saw my indicator now and understood how to trade it your opinion would change, but stick to what you know best which is time charts, but I don't understand why your here then.

Think about this though...where your indicators (which in my opinions are crappy no offence but the majority of indicators are created using moving averages with the creators preferences)...
I rarely use indicators, I'm more of a supply/demand zone trader and use the PA I see at those zones to make a call on whether it will probably hold or not. Certainly I can agree that most indicators are complete bollocks and the ones that are worth something are incorrectly used by the vast majority of traders (particularly as entry or exit signals).

I'm not here to pick a fight, but I am interested in finding out the rationale for why one would want to obfuscate the time factor. I am fairly familiar with renko in that you specify your block size and the chart will only print a new block once it's gone a certain number of pips one direction or the other, which helps reduce market noise and hide minor corrections. There is certainly some benefit to this, in terms of clarifying S/R analysis as well as helping reduce psychological stress as a trade progresses. What did you find that took you away from regular charting types to renko? What are the benefits? If possible let's ignore the external indicators and focus on the charting method itself. I strongly believe that any system or method should have a good grounding in reality for why it works.
  • #13
  • Jan 20, 2013 4:59am Jan 20, 2013 4:59am
Tradability , i actually don't understand why we have to pm you to get more details...

i did it and you sent me a chart of an indicator...telling me how good it was, altough i sent you the ea i use for trading renko i did not have anything in return.

- are you trying to sell something ?
- are you trying to get information for free pretending you have the only grail ?
- why you open a thread if you don't share any knowledge ?

i believe your behaviour is something stupid ....
  • #14
  • Jan 20, 2013 5:35am Jan 20, 2013 5:35am
Quoting tarrini65
Tradability , i actually don't understand why we have to pm you to get more details...

i did it and you sent me a chart of an indicator...telling me how good it was, altough i sent you the ea i use for trading renko i did not have anything in return.

- are you trying to sell something ?
- are you trying to get information for free pretending you have the only grail ?
- why you open a thread if you don't share any knowledge ?

i believe your behaviour is something stupid ....
Did I sell you something or even say anything is for sale?
What information could you possibly have that I dont know?
If the chart i sent you means nothing to you what does that say about your understanding of price charts or even trading?
I did share knowledge with you but your stupidity is bigger then your understanding hence no matter what knowledge nor thing I give can't help you...as for your EA I have seen it around for a long time, all you are doing is cycling using hedging nothing new. If your point of entry was much better you wouldn't need to cycle.

The last thing I'd like to add is if you claim you make so much then you wouldn,t be here looking for answers so from my perspective your behaviour is a scamming idiot....
  • #15
  • Jan 20, 2013 6:18am Jan 20, 2013 6:18am
ok

try to say something smart and new instead of asking to pm you ..i will post my excuses, but i don't think you can do it
  • #16
  • Jan 21, 2013 12:59am Jan 21, 2013 12:59am
Here you go: http://www.top-forex-systems.com/str...-systems/renko

My only suggestion is to use larger block sizes (50+ pips) if you do not want to stare at a chart for hours waiting for exit & entry signals.
  • #17
  • Jan 22, 2013 3:15pm Jan 22, 2013 3:15pm
Quoting Kanzler
I rarely use indicators, I'm more of a supply/demand zone trader and use the PA I see at those zones to make a call on whether it will probably hold or not. Certainly I can agree that most indicators are complete bollocks and the ones that are worth something are incorrectly used by the vast majority of traders (particularly as entry or exit signals).

I'm not here to pick a fight, but I am interested in finding out the rationale for why one would want to obfuscate the time factor. I am fairly familiar with renko in that you specify your block...
Hi Kanzler

I understand what so far you have said and my conclusion is your still missing how the renko's work especially in your favour. You haven't studied them enough to make a precise conclusion about how helpful they can be and I'm not saying time based don't work. If time frames is what works for you then fine but renko's if used correctly remove much of the noise you can't see and clarify movement. Please look at the comment i leave tarrini
  • #18
  • Jan 22, 2013 3:22pm Jan 22, 2013 3:22pm
Quoting tarrini65
ok

try to say something smart and new instead of asking to pm you ..i will post my excuses, but i don't think you can do it
I dont care what you think I'm not here to care what people think. If you can add value then do it or leave but don't try to scam me thinking your better idiota.
I think you have no clue about renko's and the fact I can pin the turn much better then you when you use time frames, reason is my renko charts IF used correctly will show the turns at least ONE bar before you see it on the "time frames", especially if you use TF higher then 5 m.
In saying this I am saying you have to understand candle formation with renko.

There thats something most haven't said lol and not smart but educational.
However I will not give out the secret to use renko's successfully unless I have a reason to.
  • #19
  • Jan 22, 2013 4:51pm Jan 22, 2013 4:51pm
ok

, so you have an indicator, that predicts the future and you won't give it to anyone .

what a thread you started .....

good bye
  • #20
  • Jan 22, 2013 5:08pm Jan 22, 2013 5:08pm
Quoting tarrini65
ok

, so you have an indicator, that predicts the future and you won't give it to anyone .

what a thread you started .....

good bye
Once an idiot always an idiot I even posted something new fool yet you chose to ignore it so back back to your cockroach hole and stay there and read and read
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