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Animal Farm (Renko system)

  • #21
  • Dec 29, 2013 7:40pm Dec 29, 2013 7:40pm
... later.

The chart is cooperating nicely and allowing me to illustrate:

Attached Image (click to enlarge)
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The DMTL has changed. Its previous position is noted with a black line.

Price went down and formed a fractal and a supply DTML line formed there.
Price then went back upwards to form another up fractal.

Now look at the up fractal. At the peak of the fractal (middle block or block three) there is a wick.
If you were watching, a block later, the DTML conditions are satisfied and the DMTL is re-drawn to its present position.

A short entry below the wick block is good. Two blocks later out fractal is verified. Also an entry if you like, but not as good as the wick entry two blocks earlier.

The arrival of the DTML line on the wick is like a confirmation of an entry.

We are taking short trades because the overall LL LH trend is intact and we keep a stop loss above the last up fractal.
  • #22
  • Dec 29, 2013 7:54pm Dec 29, 2013 7:54pm
And the action continues. THE DMTL adjusts. More wicks form a block before the DMTL forms and up to two blocks before a fractal is verified.

Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm6 dtml adjusts 3.jpg Size: 154 KB


We monitor the last LL and if price moves lower we have a confirmed LH.

( I have to go show rings to my customers. No time to trade right now.)

Hopefully you can begin to see the potential here. As soon as I am able, I will enter a trade or two.

Meantime monitor that potential LH, which will be confirmed with a break below the last LL. Watch for the wicks and then the DMTL and the fractal following behind them.
  • #23
  • Dec 29, 2013 8:27pm Dec 29, 2013 8:27pm
Interesting thread. I have one question, how do you enter with a strong move, when price moving fast there is renko candle is popping one buy one ?
How do you identify range market, HH and HL in range will be a killer ?

I had some experience with renko, it was interesting, but problem was when market was moving to fast. I called one point reversal, you marked it as fractal. It worked in the range, losses was small. You have one candle reversal, wait for the second to close, buy, SL as on the chart. TP or close loss when two candle close against you. Like on the chart
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Even though I walk through the darkest valley, I will fear no evil
  • #24
  • Dec 29, 2013 8:35pm Dec 29, 2013 8:35pm
Sorry for bothering you with a questions, what about this situation ?
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Even though I walk through the darkest valley, I will fear no evil
  • #25
  • Dec 29, 2013 8:53pm Dec 29, 2013 8:53pm
Looking at your chart, you have a series of HH HL so buying at any of the previous up fractals would get you in.

You also have wick signals on three of the first four HL fractals so buying on a retrace and a wick signal is possible,
but the swings are small so the advantage is minimal.

Entering where you placed your buy line is great. Entering at the previous block, which shows a wick, would be one block better.
Again, a minimal advantage in a strong bullish chart.

We can't see the chart to the left, maybe a DMTL entry would also have shown up.

Your TP is good but I would not label the last up fractal as a LH. Price has to break a previous HL fractal first and form a LL fractal before
it can rally to form a HL The new HL fractal can't be confirmed until price then breaks the LL fractal.

This is an important concept and I will come back to it repeatedly. It will all come clear in time with more examples.

Something else I will get to, is how do we manage trades like this and get that to that TP with out sitting at the monitor?

We are just getting going. Thanks to everyone for dropping in.

I found out along time ago that the best way to learn something is to try and teach it to someone else.
  • #26
  • Dec 29, 2013 9:06pm Dec 29, 2013 9:06pm
monocor, if you look at post 8 it shows the correct way to approach a HH HL LL LH count. If you can post your second chart again, without all the labels, I will show you how I do it.

If I can quote myself:

"This is an important concept and I will come back to it repeatedly. It will all come clear in time with more examples."
  • #27
  • Dec 29, 2013 9:13pm Dec 29, 2013 9:13pm
Quoting Wab
Looking at your chart, you have a series of HH HL so buying at any of the previous up fractals would get you in. You also have wick signals on three of the first four HL fractals so buying on a retrace and a wick signal is possible, but the swings are small so the advantage is minimal. Entering where you placed your buy line is great. Entering at the previous block, which shows a wick, would be one block better. Again, a minimal advantage in a strong bullish chart. We can't see the chart to the left, maybe a DMTL entry would also have shown up....
I didn't market those labels, I just dropped the indicator from first page. I wasn't looking at labels. I am just saying, that I used to trade, in that way, move up, one candle red, two green after that buy, and wait for two red candles one by one to close. But problem was with a speed, as renko doesn't have time for the close. Some times market is moving so fast, that you can't get in the trade.
Even though I walk through the darkest valley, I will fear no evil
  • #28
  • Dec 29, 2013 9:22pm Dec 29, 2013 9:22pm
Quoting Wab
monocor, if you look at post 8 it shows the correct way to approach a HH HL LL LH count. If you can post your second chart again, without all the labels, I will show you how I do it. If I can quote myself: "This is an important concept and I will come back to it repeatedly. It will all come clear in time with more examples."
Here is the chart. Thank you for your help!
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Even though I walk through the darkest valley, I will fear no evil
  • #29
  • Dec 29, 2013 9:38pm Dec 29, 2013 9:38pm
Quoting Magix
{quote} I look forward to a fresh new market perspective.

Why is it that everyone keeps "looking forward to a fresh new market perspective" when
supposedly, they were making great profits with their "same 'ole" perspective.



Same shit. Different day. Human nature I suppose.
When the Joker is in the deck.. fear not and play it well
  • #30
  • Dec 29, 2013 9:42pm Dec 29, 2013 9:42pm
Quoting Slim Buffett
{quote} Why is it that everyone keeps "looking forward to a fresh new market perspective" when supposedly, they were making great profits with their "same 'ole" perspective. Same shit. Different day. Human nature I suppose.
Old is gold !
For me it's new. I am trading sonic + my own system. And never worked with fractals. If you had experience, you can always share
Even though I walk through the darkest valley, I will fear no evil
  • #31
  • Dec 29, 2013 9:42pm Dec 29, 2013 9:42pm
Quoting Slim Buffett
{quote} Why is it that everyone keeps "looking forward to a fresh new market perspective" when supposedly, they were making great profits with their "same 'ole" perspective. Same shit. Different day. Human nature I suppose.

Yeah...some people never change...
  • #32
  • Dec 29, 2013 9:43pm Dec 29, 2013 9:43pm
Okay - sorry I missed the real question there. A lot of people use that two bar approach on Renko and it works well enough. There is a You Tube Video where the trader tests it over along period and it is interesting.

Inserted Video


The speed at which a strong move develops is an issue for sure. One solution is using bigger blocks and pending orders if you can figure out where to put them. We will work on that.

I am using small blocks to get lots of examples. Part of what I find useful is getting an understanding of the trend by doing the HH HL LL LH analysis.

Here is my version of it on your previous chart.

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You will notice a lot less labels. Mastering this type of trend analysis is critical. Once you know how the market is climbing or descending stairs it gets a lot easier to make sense of it.
  • #33
  • Dec 29, 2013 9:45pm Dec 29, 2013 9:45pm
Whoops I noticed a mistake ... the second to last LL should be one more fractal /circle to the right. (Told you mastering this is critical.)
  • #34
  • Dec 29, 2013 9:55pm Dec 29, 2013 9:55pm
Let's see how that EURUSD is doing. I have marked WE (wick entry levels) and FC fractal (confirmation levels) as they have occurred.

Attached Image (click to enlarge)
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Now what will happen at the lower DMTL? A wick or a break?
  • #35
  • Dec 29, 2013 10:01pm Dec 29, 2013 10:01pm
Than you for your help! I get used more to the swings, it is hard with fractals.
What would you do in that sircle area, there would be a loss ?
And where do you take profit ? Do you wait for Sl, or you cut your losses before price get SL ?
May be you can show some trades for better understanding.

Thank you!
Best regards !
Attached Image (click to enlarge)
Click to Enlarge Name: reply AUDJPY.jpg Size: 221 KB
Even though I walk through the darkest valley, I will fear no evil
  • #36
  • Dec 29, 2013 10:39pm Dec 29, 2013 10:39pm
Quoting Slim Buffett
{quote} Why is it that everyone keeps "looking forward to a fresh new market perspective" when supposedly, they were making great profits with their "same 'ole" perspective. Same shit. Different day. Human nature I suppose.

Question is, why do you feel the need to pollute every thread in ff with your worthless bullshit?

Dude is getting a start on his thread, if you have nothing to add, why bother posting?

As a fellow Canuck and Albertan...I like to chat with folk close to home, and haven't seen this approach.

Ergo, different shit, different day.

Now, move along.

Wanker.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #37
  • Dec 29, 2013 11:10pm Dec 29, 2013 11:10pm
monocor I would need to see more of the chart to the left to determine how the market structure was working.

At a glance I would say that it is in a wave four and those are where most people give back their profits as the market chops back and forth.

If you can determine the HH HL sequence in there it will keep you out of trouble. If you know where it confirms a breakout and wait for it it saves a lot of grief.

Thanks for defending a fellow Canuck Magix. What part of Alberta?

Slim, maybe I can show you something or maybe not. It is very early in the game here. I hope that you make a million man.
  • #38
  • Dec 29, 2013 11:26pm Dec 29, 2013 11:26pm
OK here we go. Price breaks the DMTL and closes below it. No block color change, wick or fractal forming.

It also breaks the last LL fractal and confirms the new LH fractal in the process. Trend is still down.

Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm6 first sell.jpg Size: 207 KB
  • #39
  • Dec 29, 2013 11:45pm Dec 29, 2013 11:45pm
Quoting Wab
What part of Alberta?
In Calgary.

Figured when you said you were MST, you were a little closer.

Still a pretty close neighbour.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #40
  • Dec 30, 2013 2:09am Dec 30, 2013 2:09am
Half of Calgary is here to ski and the conditions are just ice.

My stop was hit. If it breaks above the last LH it is reversing. I should have has the stop there but broke my own rule.
In front of an audience too.

Doing this live on line, is going to be tough.

Now I have to watch it go back towards the LH and look for an entry when it turns - if the LH holds.

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Stop is at the LH. Let's see how this does. I will leave a trade manager to trail a stop at each fractal. Way past my bed time.
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