Hi Wab,
Why didn't my entry, marked with a red arrow, go well? I was sure price will go down more.
TIA.
Why didn't my entry, marked with a red arrow, go well? I was sure price will go down more.
TIA.
Attached Image (click to enlarge)
Here is a zoomed in view of that GBPJPY chart:
Wave ONE down has five internal waves (1,2,3,4,5)that the fractals catch nicely.
Wave ONE ends with hard-to-see divergence on the AO.
Wave TWO up, contracts to the 76.4 Fib level. ( I didn't draw the Fib on the chart because it was getting cluttered.)
The third wave down goes a long way and gives two excellent places for Figure Four Trades.
When you get a break of the E line wait until you get a wave TWO and then think of an entry.
Initial stop above the ZERO HH then move the stop down by each LH.
As always, hindsight is perfect but the more you recognize the structure in historical context the more it will become
visible as it develops in real time. Always add the HH HL LL LH and E lines as it progresses.
Hope that helps.
On another note:
I have been thinking of introducing an E line indicator but I feel that it is much better for an analyst to
do that work themselves. Indicators make us lazy and also prevent us from thinking things through on our own and really
gaining understanding of them. For example, we don't need an indicator that labels a line and says "here is a blue line."
There are many things that we can do without a lot of effort and analysis becomes one of those with practice.
We have to be careful to not have too much on a chart that we do not put there ourselves.
Renko, Renko Shade for the HBF, AO, AC, and the Alligator and HBF red/purple line should be loads to work with.
However, in my next post I want to talk about the spread and I will add some convenient tools that display it for us.
(Yes another indicator because we can't just glance at a chart and know the impact of the spread that easily.)
Spread has a huge impact on our strategy. Add the Bid Ask Line to your charts and Candle Time & Spread.
They ere not intrusive at all and are important.
Wave ONE down has five internal waves (1,2,3,4,5)that the fractals catch nicely.
Wave ONE ends with hard-to-see divergence on the AO.
Wave TWO up, contracts to the 76.4 Fib level. ( I didn't draw the Fib on the chart because it was getting cluttered.)
The third wave down goes a long way and gives two excellent places for Figure Four Trades.
When you get a break of the E line wait until you get a wave TWO and then think of an entry.
Initial stop above the ZERO HH then move the stop down by each LH.
As always, hindsight is perfect but the more you recognize the structure in historical context the more it will become
visible as it develops in real time. Always add the HH HL LL LH and E lines as it progresses.
Hope that helps.
On another note:
I have been thinking of introducing an E line indicator but I feel that it is much better for an analyst to
do that work themselves. Indicators make us lazy and also prevent us from thinking things through on our own and really
gaining understanding of them. For example, we don't need an indicator that labels a line and says "here is a blue line."
There are many things that we can do without a lot of effort and analysis becomes one of those with practice.
We have to be careful to not have too much on a chart that we do not put there ourselves.
Renko, Renko Shade for the HBF, AO, AC, and the Alligator and HBF red/purple line should be loads to work with.
However, in my next post I want to talk about the spread and I will add some convenient tools that display it for us.
(Yes another indicator because we can't just glance at a chart and know the impact of the spread that easily.)
Spread has a huge impact on our strategy. Add the Bid Ask Line to your charts and Candle Time & Spread.
They ere not intrusive at all and are important.
Some thoughts on the spread:
Looking at the chart we can see the dotted, red, bid ask lines, to the right of the last brick. These dotted lines and the value from the candle time and spread indicator, display and show the current spread and the current spread value.
On the brick chart, I plotted a pair of moving averages (in black) that show the spread width above the high and below the low of each brick. These moving averages show the spread when it was at 25, in bands that are above and below the bricks The spread changes and these spread bands are static, however they show approximately where the spread has been in relation to the bricks.
Now consider an order which is one pip above or below a brick and also consider how the spread should be allowed for. If we put and order at a brick level it could be filled before the brick is even completed and then the price moves away leaving us with an order that was filled in violation of any strategy we are using.
This of course also applies to stops and Fib Levels and any price level that we are considering as an entry a stop or even a target.
Looking at the chart we can see the dotted, red, bid ask lines, to the right of the last brick. These dotted lines and the value from the candle time and spread indicator, display and show the current spread and the current spread value.
On the brick chart, I plotted a pair of moving averages (in black) that show the spread width above the high and below the low of each brick. These moving averages show the spread when it was at 25, in bands that are above and below the bricks The spread changes and these spread bands are static, however they show approximately where the spread has been in relation to the bricks.
Now consider an order which is one pip above or below a brick and also consider how the spread should be allowed for. If we put and order at a brick level it could be filled before the brick is even completed and then the price moves away leaving us with an order that was filled in violation of any strategy we are using.
This of course also applies to stops and Fib Levels and any price level that we are considering as an entry a stop or even a target.
- #509
- Feb 24, 2016 9:45pm Feb 24, 2016 9:45pm
I would be very grateful if one can provide a list of indicators and ea used in this kind of trading system. Yes, I know that it is available in the attachment section, but there are too many indicators and I don't know which of them are still working. Yes, I am a renko lover 
Jakepuia
- #511
- Apr 22, 2016 1:14pm Apr 22, 2016 1:14pm
- Joined Jun 2015 | Status: Zen :-) | 1,185 Posts
Hello Wab and all
I have just finished reading this thread and my plan now is to adopt this strategy. I do use a couple of other methods but this is the icing on the cake. I truly believe that the knowledge I have gained from reading this thread is priceless and the information provided here for free by Wab is the key to successfully trading the markets.
All I can say is thank you.
I have just finished reading this thread and my plan now is to adopt this strategy. I do use a couple of other methods but this is the icing on the cake. I truly believe that the knowledge I have gained from reading this thread is priceless and the information provided here for free by Wab is the key to successfully trading the markets.
All I can say is thank you.
Indentify > Plan > Accept > Execute
- #512
- Apr 24, 2016 7:01am Apr 24, 2016 7:01am
- Joined Jul 2011 | Status: Gold Again | 10,556 Posts
RENKO is fantastic 
It takes a lot for me to IGNORE you, but you can try.
- #513
- Apr 24, 2016 7:49am Apr 24, 2016 7:49am
- Joined Jan 2015 | Status: Trader | 1,005 Posts
RENKO is fantastic
And this thread is simply one of the best there are.
