Trading on the Right Side of the Market (Hopefully)

There is that long opportunity I was looking for on EURAUD. Didn't get it.

Entered this demo trade last night before bed.

Renko Chart and Template Compliments H1 Candlestick Chart and Template

The H1 chart is Bullish overall - Price above River. Path above River solong entries prefered.
5 EMA & 8 SMA crosses show lower TF trend
Red vertical lines show 5 EMA cross below 8 SMA - Bearish (mirrored on Renko chart) - possible counter trend short entries
Green vertical lines show 5 EMA cross above 8 SMA - Bullish (mirrored on Renko chart) - possible Long entries
Renko Template (River and Path) matches well with short term trend changes on H1 chart

Last 2 days USDZAR with both Bullish and Bearish periods;

USDCAD H4

We now have a new HL and a new HH (HH price to be confirmed). I was travelling most of the day on Friday but I managed to add to my position, just above the 61.8 retrace, as it pulled back during Yellen's speach. Didn't get my SL adjusted though but I should be ok for tomorrow night when the markets open.

In an attempt to make my template a bit more visual, I have made the following changes.

Candlestick chart - The Path (34 EMA) now changes coulour depending on the slope angle.

5 EMA & 8 SMA are now dotted to try to reduce clutter slightly.

Renko Path is now blue (up) and pink (down).

Renko River now also changes colour depending on slope (Green up,Red down). Green & blue = buy time. Red and pink = sell time. Candlestick River will remain the same for now.

The main indicators which give the overall bias remain the candlestick chart River and Path.

System Summary

In post 1 I said that this thread was about my personal trading development. I did not start the thread with everythying exactly how I wanted it to stay and already a few things have changed - mainly that I am now using Renko charts for trade entries.

The reason I like using Renko for entries is because the point of entry is far less subjective than using say the M5 TF. The reason that I am happy to remove that subjectivity is that I already have my bias. My candlestick charts give me the over-arching information that I need. Sometimes when the conditions are right you just need to hit the button - Buy or Sell.

I have not mentioned Hedging yet but I do like to hedge losing positions sometimes instead of using a SL. I hope to write more about this soon, once I have a clear strategy for opening and closing both the hedge and the initial trade.

Current system Overview (as it developes)

A. Candlestick chart gives over-arching bias.
1. Path (34 EMA) above The River (55 EMA ribbon) - bias is Long.
2. Path below The River - Bias is Short.
3. 5 EMA / 8 SMA crosses indicate short term or lower TF trend changes.
4. 200 EMA is included as an important MA for S/R. 200 EMA below The River adds strength for Longs. 200 EMA above The River adds strength for shorts.
5. Counter Trend Trades - Oscillator divergence is desirable. 5 EMA /8 SMA cross may add strength.

B. Renko is for Trade Entries including Scalping Trades.
1. If both candlestick chart and Renko chart template are indicating long then take Long entries.
2. If both candlestick chart and Renko chart template are indicating short then take short entries.
3. Counter trend entries can be taken on Renko chart if the candlestick chart supports. Renko template should quite quickly align with counter trend entries.
4. If trading counter trend, it may be wise to use a training stop or set SL to BE asap.