Animal Farm (Renko system)

Range predictor was the one, Thank you @eurix

Hi

How do i get my renko chart to look like this, i.e painting a new brick side by side with the last brick if the new brick is moving in the opposite direction, and not a whole brick higher or lower than the last brick

Please ignore the 'multiple brick reversal' part in the attached chart, i got this image from another thread

Try the no gap renko EA, use the search bar as I'm not sure on which thread I last saw it.
Either that or what you're showing is a range bars chart.

So did you reply on the other trade?

Maybe its this

Hi Wab,

I read thoroughly from the 1st page to page 14 and can begin to wrap my mind around this and then come the above quoted sentences from you. Are you sure it's not a typo? Shouldn't the sentences be:

A new LH cannot be identified until price moves past the previous LOW
A new HL cannot be identified until price moves past the previous HIGH

?

Thanks!

Big USDCAD move due to news and the simple HH-LL + Median Renko system helps me catch it as it happens.

nice mate, what box size are you using?

Hi Andddres1, I'm using 10 pips block with OVO's Mean Renko indicator. Still stay in the above trade until now. Has added one more entry and another pending one below the current fractal. Has made 181 pips until I type this and has already locked the oldest entry. Yaay!

thnx man, cheers

IMPORTANT QUESTION

Do somebody know is there exist indicator with give alert, when heiken ashi change colour ? But its have to close renko candle 5 or 10 pips. There shoudnt be fake signals when candle appear. I heard about indicator with give you a lot of alarms during candle appear, but I need only 1 alarm when candle close with changed heiken ashi colour. Please help

I don´t know how often the Alarm appear, but you can try these, then you will see.

Hi Guys.

I have been away from the computer as much as possible in our brief Canadian summer.
I will get back to "work" soon and get caught up on questions etc.

I have a new indicator (new to me anyway) that I will add to our mix here and I hope that
we can make it as useful as I think it could be.

I hope that all goes well with everyone.

Hi Wab. Welcome back.

Hi Wab!

Welcome back, I, too, am hoping everything had been well with you.
I'm still using your method, albeit, on a somewhat crooked way
It will be great continuing on this journey, thanks for coming back to us.

Every discussion on trading methods reaches a point at which it pauses for a while then some new breath is breathed into it. Breath deep.

I have not posted for a while for two reasons: Summer is short where I live and I want to take advantage of the season. Secondly and more importantly, I needed to do some research and try and answer some of the questions that I have been asked and also questions that I have asked myself.

How do I make all this easier to understand?

One question I must mention was from Kisruh, who noticed this error.

I read thoroughly from the 1st page to page 14 and can begin to wrap my mind around this and then come the above quoted sentences from you. Are you sure it's not a typo? Shouldn't the sentences be:

A new LH cannot be identified until price moves past the previous LOW
A new HL cannot be identified until price moves past the previous HIGH

Correct Kisruh. Thanks for catching that.


I struggle a bit with the whole jargon of HH HL LL LH.
When even I am even getting mixed up with the whole HHHL LLLH sequence I think it is time to simplify it a bit.
Maybe change the jargon to a simpler form for ease of communication.

Initially, I wanted to present a method of analyzing a chart that did not involve Elliot Wave - which is great but requires a lot of study.
Then there is the endless debate as to who has the correct count and so forth.

I decided that simple zigzag indicator, similar to the Zig Zag Fractals indicator we have already used, would be a big help.

What I wanted was a Zig Zag that was green for up moves and red for down moves. I looked high and low and couldnt find one.

(You would think that someone would have come up with an idea like that.)

What I ended up finding is much more powerful.

I will add this indicator to the thread shortly, but to make it effective I think I have to delve into Elliott Wave Theory just a little bit. Bear with me please and you will appreciate why.

Lets have a look at a classic Elliott Wave diagram:



You will note that this diagram shows a primary wave 1 up and a primary wave 2 down. Inside of the two primary waves are 8 intermediate waves and inside those are 34 minor waves. The Elliot Wave shows the fractal nature of the markets. Every time we got to a lower time frame there are these similar waves making up the bigger waves. It is easy enough to see and quite tough to work with.

You can apply the HH HL LL LH analysis to each degree of waves and should attempt to do so.

[Have a special look at the 4 and A minor waves which are often a source of confusion in our HH HL LL LH counts. If you can be aware of the higher degree waves then that is somewhat helpful to avoid this 4 A confusion.

I believe that 4 A is a tricky point in HH HL LL LH analysis and we can try to counter it later on with our indicators acting as a filter.]

Anyhow, please study the Elliott Wave Diagram and try to get the idea of degrees of waves operating in your thinking.

In every HHHL sequence there are smaller hhhl lllh sequences .
In every LLLH sequence there are smaller hhhl lllh sequences.

(I hope Kisruh checks me on that to make sure I got it right. It is a bit of a mental tongue twister.)

Once you understand the degrees of (HH HL LL LH) Elliott Waves, waves within waves, you are mentally armed to look at what comes next.
Here is a second Elliott Wave diagram that you can study to the same end.



One more note:

Elliott Wave has a very particular way of counting waves. We are not going to use that in great detail, but may refer to it for discussion purposes. Keep your EW diagrams handy, maybe even print them out for this purpose. We will be able to have a unique (non Elliott) label on every turn in a Renko Chart from now on and that will provide great reference points for discussion. Too often it is so difficult and time consuming to know what someone is asking or referring to when we talk about charts. You are going to love how we will get around that problem in future charts.

Now I am want to talk more about trends and counter trends:

A Bullish Trend is a sequence of HH Hl
A Bearish Trend is a sequence of LL LH

A Bearish Counter Trend is a sequence of ll lh.
A Bullish Counter Trend is a sequence of hh hl.

[I am not sure how extensively I will use this to label charts (as we may soon be past all that) but I do want you to be open to
the idea that there are smaller waves within the larger waves.]

How about my quest to just have green lines for and up move and red ones for a down move?

Here is more homework: Study this chart very carefully, it is very, very powerful.

Use what you know about HH HL LL LH and also look for hh hl ll lh.

It may hurt your brain a bit and that is good because we tend to hurt a bit as we learn something new.

No brain without pain.

Now, we come to the part that makes this really useful - a distinct label on every change in direction.

Green label for up moves, red label for down moves.


Trends with thick lines and counter trends with thin lines.

Again study the chart.

A thin line changes into a thick line when a previous high or low is exceeded

While you are at it, look for places where there is a HH HL LL LH reversal (or a hh hl ll lh reversal.)

See if you can locate the E lines (or the smaller e lines.)




It gets even better ... excited yet?

Okay. We are getting there. Thanks for your patience.

If you identified some E lines her is where you check to see if you were correct.
The higher degree E lines are identified here.

If you have read the whole thread you will understand this. If you haven't, then go and do it now.
The best is yet to come but it won't be any use to you if you have not started at the beginning.

Lower degree e lines are not identified but thin lines that change into thick lines (in real time) will show where the lower degree e lines are to be found.

Here is the same chart with Green E lines and Red E lines displayed.




Go long on a green E line break, go short on a Red E line break.

It is really important to compare this chart to the Elliott Wave Charts a few posts back.

Can you see that we have a big wave 1 and a big wave 2?

Wave 2 may still be in progress, we wont know wave 2 is completed until price passes above wave 1 towards a new HH and confirms the wave 2 LH.
(Unless wave 2 passes the origin of wave 1 at the -11 label and adjusts the larger degree count. See how Elliott Wave can drive you a tad insane?)

Regardless, we now have a clearly identified structure complete with labels and higher degree E lines that we can easily refer to and discuss. That alone is going to make things a lot easier.

Putting it all together:

HH HL LL LH, hh hl ll lh, E lines, labels, primary waves and intermediate waves, analysis is at a glance (if you have studied this thread.)



I have given you a lot to digest. If you didn't do the homework, go back and do it. You will bog down in the coming charts if you don't do it.

What I do is when price breaks the LH and trend direction is to uupside i take the pullback long same for shorts