Animal Farm (Renko system)

Batavier have you read Bill Williams books on how to use the AO to count Elliott Waves?

A wave four goes sideways to down in a triangle usually. The AO has a divergence and
then heads to the zero line or lower when that happens. The whole process gets difficult
to unravel when that happens. As far as I can see your count is correct and should swing
back to HH HL now.

Always check what the HBF is telling you. Trade in the direction it is showing. At some point
we may get to Robotic trading and being in sync with the HBF is the only way that I have had
that work out.

My apologies to other people who have asked me to look over counts. I will try to find time
to post a bunch of them, review the process and give you some practice examples.

Cool thanks Wab. No I haven't read Bill Wiliams book. Will get a copy.
Been a busy day and I've had to come and go from my computer a few times.
Here's my last trade on the AUD/JPY. Late entry but looked like heading the right direction. (I checked the bars on a 1 hour chart.)I chased the Renko bars down with my SL. 9.5 pips on this one. Time to go do some other work. No more trades today.

Bill Williams has three books.

"Trading Chaos," is great for understanding EW theory. Especially Chapter Seven.
His second one, "New Trading Dimensions," is excellent. He explains the AO AC and Alligator there.

Some people say his stuff is dated but I see many people who talk about Elliott Wave and so forth
without the slightest clues. HH HL LL LH is very Elliott Wave but without all the techy stuff.

I will try and put together some charts that will help you with the dreaded wave four corrections
that tend to cause us all grief.

A question for you about the semaphore indicator that you use. Does it slow your computer down?
I was tinkering with it today and it made my machine bog. Maybe I was on too low a time frame ?

Wab, Re semafor
"A question for you about the semaphore indicator that you use. Does it slow your computer down?
I was tinkering with it today and it made my machine bog. Maybe I was on too low a time frame ?"

Yes if I use it on many charts at the same time it does slow down my system.

Wab if you're playing with the semafor set it as follows :
Period 1 to 0
Period 2 to 0
Period 3 to 21
Only use the stars to draw your lines and presto look at my picture! Am I getting close????

OR Period 1 to 3
Period 2 to 5
Period 3 t0 21 for all the useful fractals.

Wab Alternatively try this little indi, I found in my files, does the same thing. (I can't remember where I got it from)

Semaphore is 3x zigzag which calculates conditions every tick. So it's nature is to eat your computer resources. Maybe there is somewhere a version that makes it's calculations after candle is closed.

this are all semafor´s i have. maybe one of them is better or don´t need much recourses from your pc





if this not helps try this

http://www.forexfactory.com/showthre...23#post8459923

We must travel in the same circles. I also have all of those indicators. That free ATM swing is a nice zigzag
and I use it on occasion. See chart below.

I find that good indicators confirm what I can see anyway and most others are lagging. I prefer to be the
indicator and let the chart tell me what it is doing. The chart never lies, though sometimes it is hard to listen
to. Especially if you have too much noise from too many indicators telling you different stories about what
happened in the past.

As an aside; last night while I was looking for some good charts to do some HH HL LL LH analysis with, I took
this trade. The chart had just made a correction upwards against the trend and changed brick colors back
towards the trend. I did the Figure Four and went short.



I trailed a stop one pip above the green Alligator line and went to bed. I had a nice (profitable) sleep and the
trade closed shortly after I started writing this. 87.8 pips.

Have a look at that chart and see how many Figure Fours formed against that trend. No additional indicators
needed really, just a standard eyeball on the Renko and our red Teeth line.

You may also note a square that I placed on the chart, and here is where I find some indicators handy.
(The three Alligator lines and the HBF, 30 pip bricks Teeth line.)

Note that inside the rectangle is the only time that they all the moving averages are squeezed in between
two opposing fractals.

(The previous down fractal is also a Bill Williams fractal which is something we understand already.)

Now go and look at a some charts and see how often you can find a set of of fractals where the three Alligator
lines are squeezed between two opposing fractals. If the 30 brick teeth line is in there as well, so much the better.

Hint: There is an Alligator Squeeze where the three Alligator lines were forced between two opposing fractals on the
chart, above my Figure Four. Start by finding that one. Keep an eye our for BW fractals and the Teeth line while
you are at it.

I am going to prepare some homework for you on this, HH HL LL LH counts and wave four. It will be a day or two.

Again thanks for the feedback and the various indicators for testing.


And yes ... here is the Alligator squeeze that you were looking for above that Figure Four Trade.

Hello Wab (and all),

I've discovered this thread a few days back, which made me very happy as I love Renko.
I've started with the rebooted system but very quickly found out I lack more knowledge so I'm back at the beginning but could contain myself from saying Thanks!


On with my silent reading.

Thanks Rea. Good trading to you.

Here is a little exercise that you can do with any chart where you are having trouble getting the HH HL LL LH count correct.

In the first chart I have a 10 pip brick display and I have done a quick count of the larger structure. The red lines show the important fractals that I identified as the larger brick frame LL locations. I did not worry about the internal sequence of hh hl ll lh .

(Pardon me if I re-invent Elliott wave structure here and talk about degrees of waves and internal waves.)



With a bit of experience you can macro analyze any chart in this manner and get the feel for the dominant trend very quickly.

You will note that I left a question mark at the end of the chart at the point that may become a new LH. We don't know that until
it is confirmed by price dropping below the last LL.

Now I can hear you saying this is difficult, so here is how you confirm this macro count in a second.

Leave your lines on the chart and change it to a 30 pip brick chart.



If your macro count was correct (it will be with practice) then the stars will also align perfectly on the 30 pip bricks.

This is a good way to learn how to do the HBF HH HL LL LH on a lower brick frame.

Now how is it useful?

You will note that inside each macro wave there are numerous waves of a lower degree (God Bless Elliot) which we can
now count away in confidence.

At every macro turn in the count, look for a HH HL LL LH reversal pattern, a BW Fractal or a BW Fork - the usual suspects.
If you can't see them, a smaller brick frame often reveals them. The reversal pattern that I illustrated at the top of the move
is a good example of what often shows up.

Knowing the internal structure is supported by the macro analysis really helps.

(By the way this pretty much covers a lot of the degrees of Elliott Wave stuff. It makes Elliott Wave a lot easier to study
when you understand this.)

You may also notice that moves that are in sync with the trend direction, tend to not have a lot of overlaps. Whereas moves
against the trend, tend to have more overlaps. (More Elliott.)

Now add a control fib into the mix and have fun.

Wab could you please expend on this:

"You may also notice that moves that are in sync with the trend direction, tend to not have a lot of overlaps. Whereas moves
against the trend, tend to have more overlaps. (More Elliott.)"

What do you mean with overlaps?

Regards Bat

Hello everyone, dear Wab thank you for post this exercize.

I still encouter some difficult to understand some stuff, for example.
In the first immage do you start with an HH, my first question is how we can understand and start with the good point ? i Give you an example, in this pic, found some post ago you start with an LH (click here for see the immage) about my actual knowledge for me it was an HH. Same in your last picture of AUD/USD (click for see the immage) for me the first was an LH.
About myself I have first to fix this kind of stuff before enter on the deeper part of the topic, i know i'm late and sorry if i will brought the thread to older part of it (older member don't hate me lol)

UPDATE:

Hello everyone, i hate the spam so i prefer update my last post.

I've got a problem on chart, look this printscreen, you can see the AO is not complete, and Alligator too have some problem on the left side of chart.
Pair with problem are : EU-GU-AU-UJ all of this are M3 (thats mean 30 box size).
My renko generator il Renkolivechart 3.4, any of you already got this problem too? (i already change the renko generator see below)

I've got problem with @ sx BT set and get crosses too the cross dosen't move and they look stuck with the background, i already try to change renko generator like renkolivecharts_pimped_v4_13 but problem was the same.


Thank's everyone in advance !

H.

Hyperfire, in both cases the chart is cut off to the left. I used what was available on screen for an example.

In the last exercise I zoomed out as far as I could and used what I could see for analysis, always wise to do
this as much as possible.

Your AO and AC require some data before they start to calculate and display. They are based on moving averages.
If you can set your Renko to have more bars that problem should be solved.

Get cross and Set Cross require that you zoom way out to find the pink vertical time line. On Get Cross it sometimes is off
the screen. If you select objects list you will find a vertical line called BT_Time. You can select Edit and change its
parameters to the time of the most recent data, visible at the bottom of your chart. That will move the vertical line into the correct place and you should be able to go from there. The pink lines are the ones that you want to adjust, move them and the blue lines on the other chart move to the same place on the other chart.

Hope that helps.

In Elliott Wave Theory the are two types of waves, Impulse (Motive) waves and Corrective waves.
You can read up on the topic in numerous places. Basically an impulse wave moves strongly in one
direction like a zigzag flight of stairs. Renko charts have that appearance in any sustained move in
the dominant direction of the trend. The wicks will all trail away opposite to the direction of the move,
like tails on a comet.

Corrective waves tend to overlap, chopping back and forth and not really getting too far in the process.
The wicks will often point both ways in confusion from brick to brick.

Elliott Wave is a complex subject which I try and simplify here, just touching on the basics. Bill Williams'
first book "Trading Chaos " explains it very well in Chapter Seven.

You may also want to look over http://www.elliottwave.net/education...ts/basics2.htm

Sufficient to say that when we are in the direction of the trend, the chart will move well. When we are
counter trend it will get messy. More than that is really not needed if we try to keep it simple (KISS)
although the study of Elliott Wave is endlessly fascinating.

Here is a video that may help with you HH HL LL LH analysis.

Here is something I found the other day. May be of interest to someone.

Regards

Thanks Mor. The more you learn about the Fibonacci stuff the better.

It has been a busy week or so, I think that there is a lot to digest here so far,
so I haven't added new material for a bit.

I will soon see about some rewards for those of you that have come this far. The best yet, in my opinion.
However, I am pretty much tied up with family stuff for a few days. I will try to get some new posts
ready as soon as I can.

Hi,

I've read nearly all of the thread and while I thank Wab (and all) for this knowledge, I also fund myself very frustrated.
Everyone seems to plot the HH/HL/LL/LH signals but I'm getting it all wrong, buying the highs, selling the lows and generally getting caught up in micro trends where I'm getting stopped out.
Any pointers would be greatly appreciated.


Thanks.