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Scalping away with 1/3pip Renko charts

  • #1
  • First Post: Jan 22, 2013 6:33am Jan 22, 2013 6:33am
Hi all,

I decided to start a journal with a method that suits my style of trading and doesn't involve any indicators, just a bit of general trading 'common sense', respecting previous SR and putting some fibs on a recent move.

I am trading, amongst other, the EURJPY using a Renko chart in a different way to the norm.

Rather than set a Renko chart up to have 1 box equal to a number of pips (10,20,50 whatever), with the attached indicator I can almost 'tape trade'

The chart below is set with the Renko chart settings: BoxSize 3, BoxWidth 8 (this can be less to more to suit your eyes! The lower number the narrower each box drawn will be). I open the M1 EURJPY chart and add the Renko Ticker. I then move the indicator to take up most of the screen as you can see.

Please ignore the times on the chart as this is NOT the time of the move as the Renko chart does not move with the candles in the minized candle chart at the top.

There was a down 'trend' from 118.67 (11:15am to check your charts) to 118.382 (at 11:35).

On noticing this was retracing I then put the standard fibs on the indicator chart as you can see.

The 118.50 level looked very interesting as it was virtually bang on the 50% retracement level of the down move and also had some 'previous' with the down move. As the down move had broken this level I was expecting it to be a resistance level to the current retracement.

So I went short with a 12 pip SL.
Attached Image (click to enlarge)
Click to Enlarge Name: entry-118.51 short EJ.jpg Size: 235 KB
Attached File(s)
File Type: ex4 Ticker Renko Box.ex4   8 KB | 778 downloads
File Type: mq4 Ticker Renko Box.mq4   6 KB | 908 downloads
  • #2
  • Jan 22, 2013 6:36am Jan 22, 2013 6:36am
The trade went as I hoped and bagged 16 pips at the Take Profit level.

If you want to load this onto your charts, you need to set it up and let it run for a good half hour before thinking of trading as the data builds up over time from scratch in the window.

I will post some more charts later.
Attached Image (click to enlarge)
Click to Enlarge Name: entry-118.51 short EJ e.jpg Size: 221 KB
  • #3
  • Jan 23, 2013 4:03am Jan 23, 2013 4:03am
Quoting Willowgal
Hi all,

I decided to start a journal with a method that suits my style of trading and doesn't involve any indicators, just a bit of general trading 'common sense', respecting previous SR and putting some fibs on a recent move.

I am trading, amongst other, the EURJPY using a Renko chart in a different way to the norm.

Rather than set a Renko chart up to have 1 box equal to a number of pips (10,20,50 whatever), with the attached indicator I can almost 'tape trade'

The chart below is set with the Renko chart settings: BoxSize 3, BoxWidth 8...
how long have you been trading this ? with what results.

can you attach the renko blocks please.
  • #4
  • Jan 23, 2013 5:03am Jan 23, 2013 5:03am
Hi

I am still learning ... I've been trading a few weeks using it and it is a case of 'teaching the eye' to read the price action at various levels. It's quite interactive which I enjoy.

The indicator is in the first post.
  • #5
  • Jan 23, 2013 6:06am Jan 23, 2013 6:06am
Quoting Willowgal
Hi

I am still learning ... I've been trading a few weeks using it and it is a case of 'teaching the eye' to read the price action at various levels. It's quite interactive which I enjoy.

The indicator is in the first post.

can you explain your entry and exit using a chart example, giving reasons why ?

thanks
  • #6
  • Jan 23, 2013 6:21am Jan 23, 2013 6:21am
A nice GBPJPY set up earlier today:

Entry Long @ 139.98 - 50% retracement of up trend, and also the price level showed 'action' on the way up. Expect this to become resistance to the retracement down.

Target: Swing High of 140.42
Attached Image (click to enlarge)
Click to Enlarge Name: 1301230 GBPJPY long entry at 50 pc retrace.jpg Size: 253 KB
  • #7
  • Jan 23, 2013 6:26am Jan 23, 2013 6:26am
Worked out well - first profit taken at Swing High, +40pips.

I set the Renk charts going for a couple of hours of a few pairs and then look for one with an obvious trend. Then I put simple fibs on the move and look for likely retracement turning points. If there has been a lot of action at either the 50% or 61.8% levels they normally hold well to a good trade to at least the previous swing high (or low in down trend)
Attached Image (click to enlarge)
Click to Enlarge Name: 1301230 GBPJPY long RESULT at 50 pc retrace - up 25 pips.jpg Size: 233 KB
  • #8
  • Jan 23, 2013 3:06pm Jan 23, 2013 3:06pm
A good example of how reliable the short term S/R levels are for a couple of 10 to 20 pip scalps

Here is a GBPJPY chart that hits perfectly on a previous resistance price level that has become support
Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPY resistance become support.png Size: 20 KB
  • #9
  • Jan 24, 2013 3:17am Jan 24, 2013 3:17am
Nice start to the day with a 25 pip trade long on the EJ.

The key is to wait for an impulsive trend to identify itself, and then wait for the retracement to reach one of the levels. Safe target is the previous High (UT) or Low (DT).

The other target I often go for (depending on recent S/R levels to the left) is the 161.8% level from the initial move. The 1M candle chart of the same move below shows it well. This resulted in a near 60 pip move from the initial entry.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 240113 - EJ Long at 50 retrace.jpg Size: 240 KB
Click to Enlarge Name: 240113 - EJ Long at 50 retrace - CANDLES.jpg Size: 249 KB
  • #10
  • Jan 25, 2013 10:19am Jan 25, 2013 10:19am
Quoting Willowgal
Hi all,

I decided to start a journal with a method that suits my style of trading and doesn't involve any indicators, just a bit of general trading 'common sense', respecting previous SR and putting some fibs on a recent move.

I am trading, amongst other, the EURJPY using a Renko chart in a different way to the norm.

Rather than set a Renko chart up to have 1 box equal to a number of pips (10,20,50 whatever), with the attached indicator I can almost 'tape trade'

The chart below is set with the Renko chart settings: BoxSize 3, BoxWidth 8 (this...
thanks for your sharing, Willowgal!

I appreciate a lot your chart, I will follow your thread as we share the same idea for entry and exit.

could you tell me where can I get the Renko chart (the tick chart, right?) to see the details of the price movement?

yours,

shunfeng
The candle pattern is the signal, the inevitability behind it is the key.
  • #11
  • Jan 25, 2013 5:27pm Jan 25, 2013 5:27pm
Hi shunfeng,

Just put the mq4 file attached to the first post in your MT4 indicators folder. I think you just need the .mq4 one.

Open a chart and add it as you would any other indicator. Set the BoxSize to 3 and BoxWidth to 3.

Drag the indicator box to cover most of the screen and leave it at least an hour for the data to chart to build. A new box (a dot really!!) will form for each 1/3 of a pip moved (blue up, red down).

IMPORTANT: Once, you have the indicator up and producing data in the window, dont change the Timeframe of the chart when the Ticker_Renko_Box indi has built up data or it will start again from nothing!!

I'll put some more charts up soon. As they are generated in real time you cant back test this.

WG
  • #12
  • Jan 25, 2013 5:46pm Jan 25, 2013 5:46pm
Quoting Willowgal
Hi shunfeng,

Just put the mq4 file attached to the first post in your MT4 indicators folder. I think you just need the .mq4 one.

Open a chart and add it as you would any other indicator. Set the BoxSize to 3 and BoxWidth to 3.

Drag the indicator box to cover most of the screen and leave it at least an hour for the data to chart to build. A new box (a dot really!!) will form for each 1/3 of a pip moved (blue up, red down).

IMPORTANT: Once, you have the indicator up and producing data in the window, dont change the Timeframe of the chart when...
thanks for your reply, Willowgal!

the market is closed about two hours before.

I will check the indicator next Monday.

Please do post more charts, I would like to post some too if the indicator works well on my MT4 platform. It is a pleasure to share with someone of the like-minded.

Nice weekend!

yours,

shunfeng
The candle pattern is the signal, the inevitability behind it is the key.
  • #13
  • Jan 26, 2013 4:00am Jan 26, 2013 4:00am
Here is how I traded yesterday's USDJPY pair (Friday 25 Jan 2013)

Around 8.50am UK time set the Renko Ticket Box indicator off (on a USDJPY 1 minute chart) to build price background data (I would usually start this off around 6am to get at least a couple of hours of data to analyse before starting trading).

1st Step: Determine whether the pair is in a trend or going sideways (in a channel).

You can see a mini uptrend which appears to be from 90.57 up to 90.90 followed by the start of some retracement of the move.
Attached Image (click to enlarge)
Click to Enlarge Name: uj 1.gif Size: 24 KB
  • #14
  • Edited 4:19am Jan 26, 2013 4:01am | Edited 4:19am
I checked the candles chart at this stage to see if 90.57 was the real low of the move. As you can see in screen 2 it wasn't - the move actually

started around 7:19am GMT at price 90.45. So this was a mini 45 pip Uptrend before it retraces.

(this only has to be done once at the start of the day, as from then we will have the Renko price data to use to determine future levels, highs,

lows etc.)

Once I have established the Low and High of the mini uptrend I draw the standard fibs on the chart with the crucial points being:
23.6% = 90.80
38.2% = 90.73
50% = 90.68
61.8% = 90.62
78.6% = 90.55
Attached Image (click to enlarge)
Click to Enlarge Name: uj 2 - candles.gif Size: 35 KB
  • #15
  • Jan 26, 2013 4:02am Jan 26, 2013 4:02am
Then, I go to the Renko chart and draw these price lines in manually (rather being able to use the fib tool to do it for me). Then mark off which of these levels have shown previous 'interest' on the upmove. Both the 50% and 61.8% levels did this, so in my mind I am now looking to go LONG when price retraces down to one of them.
Attached Image (click to enlarge)
Click to Enlarge Name: uj 3 - draw retrace levels.gif Size: 27 KB
  • #16
  • Jan 26, 2013 4:04am Jan 26, 2013 4:04am
On screen 4 we can see that price, having respected the 38.2% level on many occasions, has now retraced down to approach 90.68, the 50% retracement (or Pivot) level. Time to closely start watching price action ....
Attached Image (click to enlarge)
Click to Enlarge Name: uj 4 - price approaches 50%.gif Size: 31 KB
  • #17
  • Jan 26, 2013 4:06am Jan 26, 2013 4:06am
After briefly falling through this level, price quickly reacted and this is where I go Long at around 90.69.

1st Profit Target: Swing High 90.90 (21 pips). Stop loss 3 pips below 78.6% retracement level 90.52 (17 pips)
2nd Profit Target: 45 pips + 90.68 ie. initial upmove to be repeated following the retracement ie. 91.13
Attached Image (click to enlarge)
Click to Enlarge Name: uj 5 - long entry.gif Size: 33 KB
  • #18
  • Jan 26, 2013 4:07am Jan 26, 2013 4:07am
We hit the first Profit Target in screen 6. I then watch price action and also look on the candles chart to the left to see if there are any obvious levels of resistance which are likely to stop the move going much further.
Attached Image (click to enlarge)
Click to Enlarge Name: uj 6 - first profit target.gif Size: 36 KB
  • #19
  • Jan 26, 2013 4:10am Jan 26, 2013 4:10am
To have a look at the 'bigger picture' I go to the 1 minute candles chart (everything is relative!!). As we can see nothing to the left as far I let the long trade ride, moving my stop a few pips below each subsequent higher swing low in the move.

If there had been one or more highs to the left I would usually take half profit and watch the rest closely. This looked a good opportunity though with no worrying levels just above current price.
Attached Image (click to enlarge)
Click to Enlarge Name: uj7 - no obvious r levels.gif Size: 42 KB
  • #20
  • Jan 26, 2013 4:11am Jan 26, 2013 4:11am
Second Profit target is hit (see chart 8).
Attached Image (click to enlarge)
Click to Enlarge Name: uj8 - second profit level.gif Size: 40 KB
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