Animal Farm (Renko system)

I would like to share with my friends this indicator that shows fractals in high and low lines in the exact places where the fractals arise.
see how it works in the image:

HEY WAB,
FIRST, thank you for you continuous effort for helping and contribution .
Secondly , i just want to know what is the best solution to handle cases like that (chart below) with choppy breaks or better than handling it how to avoid them if possible according to your experience

even when we consider the highs and lows? this is your question, kmalex?

I am not sure what you mean because even when we determine high and low it will be difficult to determine what to do and i am asking to clarify things out as i am in learning process. To show what i meant the price breaks the HH so if we have a pending buy as wab suggested we are In for a buy then the market reverse and break through the last HL and supposedly we have a pending sell then, we have another reverse and break through the last HH and in for another buy. I don't know what part of my thinking is right and what's wrong so i 've asked hoping for advise and correction from those with experince so I DON'T understand your tone ????

forgive me for my English. I believe we should look at how it behaves in relation to the MACD trend. beyond that, I'm using two simple moving average of 25 periods, the first in "low" and the second on "high". when the price crosses these averages there is a likely trend reversal. when the market is lateral, the averages behave differently. look in the picture:

again, forgive me for English. I'm struggling .. hehe

which currency pairs you trade with this strategy, WAB?

I had a couple of charts here that I realized were wrong, so I removed them.

Does anyone else experience Median Renko charts that hang up and do not show the swings back and forth?

Thanks for the Fractal support resistance indicator ducka. I have used it before and it is very useful.

I filter choppy markets with the Alligator. When price is in a counter trend (dark red or dark green) the
Alligator tends to be tangled. When price is moving strongly it will be bright green and above the Alligator
or bright red and below the Alligator.

The Alligator and the 5 34 5 MACD are designed to work together.

kmalex,

On your chart there is actually a reversal that you can find like this:

(I would label it to show you but my Renko Chart will not go back that far.)

There is a LL between the last two HL and LL labels.
If you locate that LL then there is a LH between your LL and LH labels. When
price breaks above that you are back in synch with the bright green trend.


Once the choppiness passes it is easy to get the HH HL LL LH count sorted out. Mean time when you see
two HL fractals very close together in price or two LL fractals very close together in price you can be cautious.
Take the most distant one until it sorts out.

In regular charts I go to a higher time frame to solve the choppiness and sort out my HH HL LL LH count.
Larger blocks may help.

Another thing to consider is that bright green is trending and dark red shows counter trends. Because it is
above zero on the MACD the market it trending up overall, even if it it does counter trend temporarily and throw
a reversal pattern in there. The HH HL LL LH sequence is tricky at times like that and the MACD in particular helps sort it out.

I hope that helps. As you run into that situation again and again,you will recognize it and get good at dealing with it.

HH HL LL LH does not lie to us, but we have to listen to it carefully or miss what it is telling us.

Thanks wab for responding and clearing things out .

I didn't understood your explanation about the missing LL in the chart i have posted so if you could clear it more or when your renko chart is fixed attach a picture (sorry for bothering you ) .

And to sum things out about the choppy market we can/better to :
1-Avoid trading when fractals are very close together in price
2-caution with Breaking the CRL when macd is dull Red/Green as it may be just a pullback
3-A look with a larger block size is preferred to avoid such situation

Sorry for repeating what you have just said but i just wanted to make sure i get things right before going ahead
and is the alligator setting is default .

Hi kmalex.

If anyone has a good set of instructions on how to get more M1 data please post it. Thanks.

Sorry the explanation doesn’t make sense. My data only scrolls back so far and I could not get back far enough to bring up that part of the chart to show you what I was trying to describe.



Let’s move on to a similar situation that is current. Look at the area in the ellipse on the chart. The HH HL count gets difficult to sort out there. I have shown the count with hh? and hl? If you look at the MACD in this area you see that it is in a counter trend. This, combined with very close prices for the hh? hh? and hl? hl? Fractals makes it difficult to do our price analysis. Eventually it becomes clear and we change the last hh? To a HH.

It is confusing at first and only gets easier with practice. This particular part of the sequence is what is referred to as a fourth wave in Elliott Wave terms and most losses occur in a fourth wave. Another way to look at that is if you cannot determine the HH HL LL LH count you are likely in a fourth wave and need to stand aside until the count becomes clear again.

I have put the Alligator (default settings) on the chart to show how it works. In Impulse, or trend moves, price stays well clear of the Alligator - above it in a bull move. The correction or count trend dips back into the Alligator. This corresponds exactly with the 5 34 5 MACD. Each dip gets a little deeper and then we get a trend reversal as the MACD goes below zero.

It does not do it without a fight. The price may cross the Alligator and the MACD may cross zero then pull back up for a re-test, which is possibly the situation we have here. I added a ? to show the idea of the re-test. Of course if goes higher than the last HH … we have to work with that.

We can’t predict the future we just try to understand where we are in the present.

Our last Green Wick Arrow may be a new HL or the first LL if price rallies then breaks below it.
A new bright red bar here will signal a down trend.
A new red WE, somewhere around the ? would also be a good short entry that I would take.

Finally I want to point out the last down fractal. I extended a violet line to the right from it and labeled that line as the BW (Bill Williams) fractal. This is the first fractal which is broken by a lower price and it is also below the Red Alligator line when it is broken.

I will not go into the BW fractal at this point because we have a lot going on here. Watch for it at a future time. When it shows up it is a good indicator of a trend change. I will explain it in due course.

Again, if anyone has a good set of instructions on how to get more M1 data please post it.

My M1 data goes back to Nov 27th any ideas on how to get more?

I'm trading with FXDD.
Today my MT4 platform updated to Build 574.
Now my offline charts have stopped working.
I am able to select FILE > OPEN OFFLINE > and the desired currency pair.
However, when the chart window opens, the following message appears- Waiting for Update.
The Journal tab shows- HistoryBase: invalid database header.

Is there a new process for opening an Offline chart with Build 574??
Thanks.

Sorry Michael. I haven't had to fix that yet. If you or anyone else finds a fix please post it.

****************************************************************************

Back to our chart:

Once again the bars turned bright green and confirmed a HL.
Note that the Alligator is back open and price is once again well above it.



Each of these impulse waves can be traded nicely.

Please help me..

I have installed the RenkoLiveChart_Betterv3.301_fxkred.ex4 and it is shown in the custom indicator of Navigator window but unfortunately it won't show up into the chart when i drag it to the chart.
I saw the tab Journal which says " Expert 'RenkoLiveChart_Betterv3.301_fxkred' is not custom indicator and will be removed".
Anybody has the same problem with me? How to solve it.

thanks

Hello Brother, actually you put this renko builder in wrong folder, RenkoLiveChart_Betterv3.301_fxkred.ex4 is EA type of renko builder and not custom indicator, so you must put 'her' in MT4/Expert folder instead of MT4/Expert/Indicator, then activate her just like you use an EA..

Hope it help and happy trading.

Hi My Friend Wab, I always following your thread with big interest since i'm also renko lover..
About maximize your M1 source data for offline renko chart, do you already change your Tools/Option/Chart for maxbars in history and maxbars in chart ?, also do you use real account for your renko source data ?, if yes then your data will limited to your opening account date. but if you use demo then you can get maximum M1 source data. You can also download historical data from other source to your real account history folder, but this will ruin your original broker tick data, and sometime make 'mismatch' error when you use strategy tester.

And, also little suggestion to all of you, most of renko chart builders program with EA, Indicator, or script type, that build with MT4 build 509 compiler, will not work with new MT4 update. even if you have mq4 version, so better not update your MT4 for a while, until some one can change the program structure to create offline chart with the new set of program code from metaquotes, for myself, it is really painful to change hundred of my personal indicators,script and EA..

Hope it help and happy trading..Brickers
MTH

Hey wab ,
I will read your post and come back to you if any question raised but first i may be able to help with your renko chart problem

1- open Tools>option>then go to chart caption and increase you (max bars in history ) and (max bars in chart)



2-open Tools>History center> then choose forex >then the currency you want but make sure to select m1 then download



3-Last step you should allow the increase in your renko chart data by opening the renko EA proprieties of M1 data feeding chart then switch to input caption and increase you Number of candle to what ever suits you best in relation to how far you what to show but be careful not to increase it very much as it may slow down your chart



I hope that will help you with your problem waiting to hear from you .

Wab hello, thanks for listening!
I have a question at this time. I'm checking some peers and emerged an intriguing moment in GOLD.
Ps:. GOLD is a metal that moves and behaves very well with the Renko chart.

the image is intuitive, but it would be better to wait for the definition of the trend or trend between LH and LL would enter into a trade? MACD is also in agreement, but I think it would be a risky operation ... what would you tell me?

Thanks for the help kmalex and Kiads. This is how it is supposed to work. We help each other out and it leads to a better world for all of us.
I upped the number of candles to 10,000 and I will see if I can get back to the area that you had a question about when I get a chance to do so.

Meantime, here is how the chart that I was following last night worked out.



I left LOC to manage my trade and it did so nicely, with 16.4 pips. The MACD continued to give some little counter trend information then it decided
to go above zero and a combination, or any of the WE, DMTL breaks and Fractal breaks all would have been good entries.
Price finally broke above four fractals, confirming a trend reversal.

I wasn't at my computer to take any of them, so it is all academic at this point. If I was on line, I would have had a nice run of 59 pips from the first WE.

Here is the same chart with the Alligator and the BW fractal.



The bullish BW fractal, is the first fractal which has its price broken above the red Alligator line.

(If we had a bearish BW fractal it would be the first fractal to have it price broken below the red Alligator line.)

Note how the trend, once again, sees price stay well out of and above the Alligator which opens wide. When
price swings back into the Alligator we get a bounce up for another bright green, then MACD divergence and a
break below the Alligator tells us it is done.