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Scalping away with 1/3pip Renko charts

  • #21
  • Jan 26, 2013 4:12am Jan 26, 2013 4:12am
and then price reverses.... (see chart 9)
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  • #22
  • Edited 4:45am Jan 26, 2013 4:15am | Edited 4:45am
Now I look for either
a) Price levels we return to for a bounce (see point B on chart 10) or
b) New mini trends form, retrace and then get in at the appropriate fib levels to get in the continuation of the trend.

Chart 10 shows a good scalp setup at B. We can see previous support at this level on the up move, and it is the first time (very important!) price has got back to that level. Expect a bounce. It was good for about 16 pips.

We exit at C as soon as price stalls because of what happened at point A. This price level show previous Support on the upmove but it was taken out easily at A. This price level is now likely to act as Resistance next time it is visited (once again, first time back there) - as it did at C and I exited the scalp.
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  • #23
  • Edited 4:47am Jan 26, 2013 4:16am | Edited 4:47am
On chart 11 - price gets to D. This is the original 23.6% level 90.80 (see chart 3) I drew and price gets there for the first time again. Sure enough it bounced away for a 25-30 pip move. Price gets to point E (which happens to be the first time it returned to level C) and this level once again resists a further up move. Exit.

Hope that all makes some sense and I would love feedback.

Enjoy the weekend all!!

WG

UPDATE: Ive just noticed that on some of the charts I have mis-labeled some of the retracement levels 38.2% when they were the 23.6% level. I hope that isn't confusing. but it would be a complete pain in the *** to go back and do them all again now!! As long as they are levels, they are levels so the principle is the same.
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  • #24
  • Jan 27, 2013 5:55am Jan 27, 2013 5:55am
Quoting Willowgal
On chart 11 - price gets to D. This is the original 23.6% level 90.80 (see chart 3) I drew and price gets there for the first time again. Sure enough it bounced away for a 25-30 pip move. Price gets to point E (which happens to be the first time it returned to level C) and this level once again resists a further up move. Exit.

Hope that all makes some sense and I would love feedback.

Enjoy the weekend all!!

WG

UPDATE: Ive just noticed that on some of the charts I have mis-labeled some of the retracement...
thanks for your serie of charts explaining in detail about your method, Willowgal!

My primary question is

if the fibonacci needs only a swing high and a swing low to establish its levels, what is the interest to read the Renko charts? (I mean, M1 chart or M5 chart will be fine, too, right? No matter it is candlestick chart, OLHC chart, line chart or even Heikin Ashi chart......)

yours,

shunfeng
The candle pattern is the signal, the inevitability behind it is the key.
  • #25
  • Jan 27, 2013 6:30am Jan 27, 2013 6:30am
Quoting shunfeng
thanks for your serie of charts explaining in detail about your method, Willowgal!

My primary question is

if the fibonacci needs only a swing high and a swing low to establish its levels, what is the interest to read the Renko charts? (I mean, M1 chart or M5 chart will be fine, too, right? No matter it is candlestick chart, OLHC chart, line chart or even Heikin Ashi chart......)

yours,

shunfeng
Yes the 1m or 5m charts will be ok too but the Renko charts show the levels where there has been a real price 'stall' recently - this is often something that cannot be seen just looking at a completed candle over say 5 mins. I am looking for very short term trades generally of 10-20 pips with usually a very tight stop - either a level will hold or it won't so 5 or 6 pips will be enough of a stop most of the time.

It's just the way I like to look at price and the more you watch it moving around in real-time, the more you get a feel for where it is going next (very short term obviously).

That is why I just put this is Journals rather than Trading Systems as there are no rules, it's just a way of getting a real 'feel' for the market.

You start to notice the formations that form when a level is going to hold or get taken out. I am still learning but the more I watch the price move, the more accurate I am becoming at reading whats going to happen next. I am trying to get the charts to tell me where they are going to go at each price level rather than have a 'guess' in advance myself.
  • #26
  • Jan 27, 2013 8:11am Jan 27, 2013 8:11am
Quoting Willowgal
It's just the way I like to look at price and the more you watch it moving around in real-time, the more you get a feel for where it is going next (very short term obviously).
I am still learning but the more I watch the price move, the more accurate I am becoming at reading whats going to happen next.
I see your point, Willowgal!

Actually I've got the same feeling, sometimes I can just "feel" that the price is going to break the previous high or low but the M1 candle stick could not show me the details of the movement (in the body of one candlestick of M1, there could be many up-down movement "inside" it!).

Let's follow with the tick chart and see if this could give us a real edge for the short term trading.

By the way, me too, the same trading style, I have very tight stoploss (4 pips) on the M1 chart.

yours,

shunfeng
The candle pattern is the signal, the inevitability behind it is the key.
  • #27
  • Jan 27, 2013 10:24am Jan 27, 2013 10:24am
I look forward to your feedback tomorrow when you have some live charts to look at.

Regards,

WG
  • #28
  • Jan 27, 2013 10:27am Jan 27, 2013 10:27am
Quoting shunfeng
I see your point, Willowgal!

but the M1 candle stick could not show me the details of the movement (in the body of one candlestick of M1, there could be many up-down movement "inside" it!).
It is amazing sometimes how much actually 'goes on' inside a simple 1 minute candle !!

  • #29
  • Jan 27, 2013 3:53pm Jan 27, 2013 3:53pm
Quoting Willowgal
I look forward to your feedback tomorrow when you have some live charts to look at.

Regards,

WG
I will definitely post some live charts with fib retracement tomorrow!
yours,
shunfeng
The candle pattern is the signal, the inevitability behind it is the key.
  • #30
  • Jan 27, 2013 4:37pm Jan 27, 2013 4:37pm
Quoting Willowgal
Hi all,


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.
Hi, Willowgal!
I've tried with the indicator as the market is opened at 22:00 GMT.
Do you mean that the number of ticks given by the indicator SHOULD BE different from the number of candlesticks in the M1 chart? (As in the same 1 minute, there could be many ticks up and down during this 1 minute. right?)
it is strange that for me until now, they corresponds well. Is it because that the liquidity of the market is not good (only one jump per minute) or I missed some configuration for the indy?
Also, as soon as I change some values in the configuration window of the indy, the historic renko ticks will be disappeared and it will start only from the next candle after the change of the value.
yours,
shunfeng
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The candle pattern is the signal, the inevitability behind it is the key.
  • #31
  • Jan 28, 2013 10:11am Jan 28, 2013 10:11am
I still need other indicators to help me identify some short term trends to trade in the correct direction.
do you apply any other indicator, Willowgal?
yours,
shunfeng
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The candle pattern is the signal, the inevitability behind it is the key.
  • #32
  • Jan 28, 2013 10:59am Jan 28, 2013 10:59am
Hi

I don't use any other indicators. All I use before I start trading is a chart, say the 15 min chart, to show me what is happening.

I actually traded the GJ today early on and then called it a day quickly after I got in on the initial retracement.

Dont have much time at the moment to elaborate but will try to do later :-)

WG
  • #33
  • Jan 29, 2013 9:19am Jan 29, 2013 9:19am
Just gone long GJ at 142.77 SL 142.45
Target 143.42
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  • #34
  • Jan 29, 2013 9:25am Jan 29, 2013 9:25am
25 pips up. Some profit taken and SL set at BE on the rest
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  • #35
  • Last Post: Jan 29, 2013 9:50am Jan 29, 2013 9:50am
Quoting Willowgal
25 pips up. Some profit taken and SL set at BE on the rest
thanks,
enjoy your scalping!
The candle pattern is the signal, the inevitability behind it is the key.
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