Animal Farm (Renko system)

Correct

No problem handy.

Some things I think I have figured out and then a better idea comes along. It may be (somewhat) my show but I am very open to good ideas and encourage discussion. Everyone benefits that way.

I realize it can move that far before it prints, but what is the best point at which to put that initial stop? I am trying to get a firm resolution to that.

(Once a move starts, a trailing stop strategy may be the next thing to agree on and there are also other entries to consider, like fractal breakouts etc.)

I hope that we can all put our heads together here and agree on some good tactics for all of us to go forward with.

29.9 pips (plus spread and a pip?) is a big stop indeed but a safe stop is desirable. Is it beneficial to have a larger safer stop on Renko or cut losses early?

Jump in with other thoughts anyone.

I personally prefer to pull the plug on a trade that is not going in my favor ASAP. It is safer to operate with the assumption (fact) that nobody knows where the price goes next. If I aim to enter long on a pullback and the price goes below my entry point - making a LL, there is really no reason to hold onto the trade.

For those who wanted it here's my template.
Please note you'll need the roadmap indi and its for the offline ovo renko charts.
Trade well.

As a loyal user of Renko for more than 6 yrs and I would like to say this and only for just once this time is that the key of renko method lies in the value size of the bricks according to each different currency pairs and once you got it figured out then all the hh, hl, lh, ll etc will be as clear as days and nights. Do not get distracted by any other approaches and someday you will definitely hit the nails on its heads. My first and last post on this thread.
Happy trading all.....

GS.

This roadmap stuff is interesting - not sure I've got my head around it all yet but getting there.

Haven't been able to read much so I still need to catch up.

My charts don't look like yours too much highs and lows.

Anyways, I'll be reading the current addition and see if my charts can be improved.



My contribution.
Added email alerts and alerts when the "E" line is formed - Still need to test it
And the ability to remove the lines and leave only the "E" lines. for those of us with too cluttered charts or those who just want the "E" lines.
The ability to remove the fractals numbers was already there.


Not a coder so if it's not working... well, I'll try to help but not a lot I can do.

Thank you BATAVier for sharing ur template - will now sit and see how to read it and put it on a demo account

GENGHISTAR - where can i read more about ur approach to understand the magic behind the bricks?? How do i learn the sizes?

Thank you

Good to hear from so many of you tonight and see that the interest here is so strong.

Regards different time frames, range bars, median Renko bars, variations in brick size etc. etc. As far as I am concerned we are all here to learn from each other, so feel free to post templates, charts ideas, strategies etc. My theme is that HH HL LL LH is the prevailing force in any chart and I will keep grinding away at that.

Sooner or later someone will ask for an ea and a zillions indicators will be added, but I think the price action component is capable of surviving that.

Road Map is one tool that I have added, there are a coupe of others that I like, but one at a time. Let's really work over Road map on the Renko charts and see what it reveals.

(As an aside Road Map is a great tool on time based charts as well. Try it and see. Watch it in action on a M1 chart, especially when new labels arrive.


It's after midnight here so I will sign off soon, but as I said, share your ideas and as long as we are all trying to help each other it should be a good forum for doing that.

I will ask people to post charts when they talk about trades so that we can easily see what they mean.

Post brick size, pair name and spread and that will be very useful because we can pull up the same chart on our own screens and draw in anything that we notice in our replies.

I should have some time tomorrow to add some of my thoughts on the Road Map. I believe it will make the HH H LL LH thing a lot easier to work with.

When we get past a thorough Road map debate, I have some other stuff that I know will prove interesting to everyone who has studied this material.

Fun and fortune ahead. Lots of charts please. Charts help everyone learn.

Again - thanks for all the kind words and welcome to the new visitors.

Here is a potentially useful tool.

Just add the indicator to your chart, adjust the color as you like and make sure the chart is set
on background (in the properties.)

Saves tired eyes from searching for most of the reversal bricks.

(I added it to Batavier's nice template.)

Unable to trade this morning Life gets in the way at times.
But here's what I saw in the charts. The reason my old semafor indi is on the charts is that a starburst warns me of impending reversals.(yes it repaints I know!!!! its an alert to look for a BW fork not a signal to trade.) Brick size chosen as it suits the Asian session for USD/JPY.

Reamasesa - can you tell me which lines in the code to alter to make the red and green E-lines thicker please?

Hi,

Change lines 208 and 234


Change the "2" to something else.

Hi,

Still not fully understanding the Road Map indicator.
What's a corrective wave and all the other things it shows? And I think it only follows the Chuvashov Fork when it prints out the "E"s.

Here are two screenshots. The XAUUSD kicked in and was terminated by a trailing stop in profit.

Here is how I propose we start to use Road Map in conjunction with the Alligator and AO.

(The HH HL LL LH sequence is in there too and we can also integrate it in the second chart.)

We know that the market moves in trends counter trends until a reversal in the structure occurs.

When AO is above zero we know the trend is bullish where it is green and counter trends where it is red.
A divergence in the AO indicates a trend change.

When AO is below zero the trend is bearish where it is green and counter trends where it is red.
A divergence in the AO indicates a trend change.

The AO is designed to work with the Alligator.

(Note that Batavier has altered the Alligator settings to match his style of trading on his template, if you are using his template be aware of that.)

In this first chart below, I have illustrated how Road Map, AO and the (classical) Alligator work together for us.





On the left hand side we see Road Map has labeled the fractals from -8 to -9 with a heavy purple line.
Section -8 to -9 down trend that matches the red (below zero) slope of the AO. It also is moving away from the hungry Alligator.

At -9 we get a bullish Reversal Candle with its long wick pointing down. Any trade taken here is heading back into the Alligator. It is a counter trend trade.
(You can take these counter trend trades if the distance back to the Alligator gives you room to do so. Be careful though, better to trade with the trend.)

At -12 we have crossed the Alligator and it has briefly gone to sleep forming a saddle point.

(A saddle point is where the Alligator has become very tight. In fact the Alligator is trapped between fractals -11 and -12. We have bricks with wicks at both fractals so best thing to do here is straddle the -11 and -12 saddle point with pending orders. The market breaks below -11 and fills a pending stop and we are in phase with both a Red AO and a hungry Alligator.

At -13 we get a Bullish Reversal Brick with its wick. Time to place a stop and the trade is closed. ( A good trailing stop works well for this.)

AO now has a Bullish Divergence (sorry I didn't draw that one on the chart.)

Fractals -14 and -15 tangle with the Alligator but this is not a saddle point as the Alligator is not totally trapped between the two fractals.
If we were long at -13 then moving our stop to just belwo -15 is a good strategy or we might have closed at the bearish reversal brick at -14.

Trailing stops on fractals like -15 and later at 2, 4, 6, 8, 10 and ultimately stopped out at 12 or stopping and re-entering at -14, 1,3,5,7 and 9 are a matter for future discussion.

At the Green E line a very interesting thing happens. Our Road Map changes a light purple line into a heavy Blue Line.

(If you are watching, you will see line color and thickness change each time a structural change in the HH HL LL LH sequence occurs. Drop it on a M1 chart and observe if you haven't noticed that before.)

The line from -15 to 1 will change as price breaks above the E line which has been sitting there n our radar as a potential change in our LL LH HH HL sequence of waves in the chart. AO also crosses Zero at this point.

AO turned green with a Bullish Reversal Brick back at -13 we crossed the Alligator at -14 , found support at -15 and now we have a change in the Road Map to a heavy Blue.

[Actually, without Road Map, I would have had my potential E line at - 10. The difference between an indicator mathematically trying to identify a chaos feature and a human mind at work being evident here. I mention this because RM is very good but at time gets tangled in the different degrees of Elliott Wave. We will see more of this later in this chart.]

Between 1 and 9 we get a series of heavy blue trends with small light blue counter trends. Look at the Bullish Reversal Bricks with wicks at 2, 4 ,6 and 8. Would you trade toward the Alligator there? AO is above zero, not how it is green in the smaller bullish trends and red in the little counter trends against the over all larger Bullish Trend.

Watch AO is now giving bearish divergence signs at 9 and we get a larger counter trend right into the Alligator. The we are moving back into that E line at 8.

At -1 the E line breaks but do we go short? Have look at the first -13 on the left and the -1 at this E line. This red E line occurs in a chaotic tangle of Alligator and a Green E line at 17 is really close. The real clue is the tangled Alligator. A tangled Alligator mean a corrective wave is taking place. Stay out of it, be cautious. In Elliott Wave this is wave four or maybe a B wave. No matter. It is a mess.

We almost immediately get a Bullish Reversal Brick with its wick at -1 then a saddle point forms between -2 and -3. Ah that's starting to make sense now.

"Aha!" you say... straddle that saddle with pending orders.

AO swings back green and by the price breaks out of the straddled, saddle point above -2. The Green E line at 17 Road Map is broken and once again RM has started to draw us a heavy blue line.

Bullish Trend!

A retest of the Alligator at 2 and then a lovely third wave (in Elliott Wave terms.) We just call it a Bullish Trend, never mind the Elliott Wave stuff, A rose by any other name.

AO is green again.

Life is good and an AO divergence (not shown on the chart) sees the move topping out at 13. Time to get cautious again as price heads back into the Alligator.

Attachment


An awful lot to digest.

RM allows us to label points for discussion.
RM identifies trends.
RM color change at E lines.

Saddle points should now be part of our discussion. (Alligator trapped between two, close, opposing fractals.)
Straddle the Saddle strategy is introduced.
Bullish and Bearish Brick Reversal bars ... with their wicks.

AO trends and little trends and counter trends within the larger trends counter trends. Green and red waves within the AO.
AO crossing zero coincident with E line breaks.
Alligator showing trends and counter trends back towards the Alligator.

Lots to digest. Please post your charts as above for discussion purposes. Default Alligator, Pair name Brick size and RM on the chart.

When your head stops hurting, let's see how HH HL LL LH apply on the same chart in the next post.

Same chart.

I want to show you that RM (Road Map) is pretty god but it doesn't identify a higher degree wave count.
(Refer back to the Elliott Wave diagrams posted earlier.)

You need to know that higher degree count at all times and you have to do this on your own. RM doesn't do that for you

I have identified the higher degree count with capital HH HL LL LH labels and the lower degree count with hh hl ll lh labels.

With last HH label we know that the market is now heading into a correction. AO and the Alligator tell us this.
RM is busy identifying purple heavy down trends and keeping those away from the feeding Alligator.

-2 and -3 and -5 and -6 make some saddle points.

A black dashed line sows where the higher degree E line would form.

If you check you can see that hh hl ll lh labels have been added to try and show that within the trends an counter trends identified
by RM our waves can be counted and RM does a very good job at this level.

My thought here is always keep the bigger picture higher degree count in mind . Mark it on your charts and it will let you know when
you are in sync with a bigger wave. Do this and watch the classical Alligator and the AO and you will be able to avoid trying to trade
inside the higher degree corrective waves.



These last two posts are very critical. I urge you to study them thoroughly and make the thoughts your own before you move forward.

Keep your charts simple and master them. No need to have anything more than Alligator RM AO and identify the higher degree wave using HH HL LL LH.

Have fun. Share charts. Help each other.

Thanks for that Rea. I get the feeling you are going to overhaul Rm for us. One thing I would like is to have less thick heavy lines on the chart.

Now that you have identified where the line thickness is set I may even be able to do that on my own. I used to program in BASIC and PASCAL but
starting stuff only in C++. Reading MQL code is something that I am reasonably adept at but writing is not in my repertoire.

Many of you are a real assets to this thread. When I help you - I get as much or more back.

GENGHISTAR and his comment about brick size has me thinking. I used ten pip bricks for a lot of my research.

Then Wiseguy sent me a thought about using really small brick sizes like Batavier does. That got some more thinking started for me.

I do believe that we can push this along nicely.

I have some more material that I will share after the dust settles from the Road Map addition to the charts. You will learn why an E line is
an E Line and at that point I think Rea will get those counts really sorted out. After that I think we can really hammer out an excellent trading system here
and I look forward to seeing my theories fleshed out by the capable group we have here.

I would urge everyone to put RM on a regular M1 chart along with the AO and the Alligator. You can use the M1 chart that feeds your Renko.
You can not learn enough about that combination and it applies to any chart, time based, or Renko.

Thank you for all ur useful information!!!!!!

Hi Wab,

Thanks for taking the time to write out some very cogent thoughts on how to interpret what the market is 'saying' at any point in time.

As you know from experience, successful trading involves both the analytical as well as the subjective. That is why quality screen time can be oh so important.

It's not just looking at a potential situation, but also going within and asking ourselves what would the market have to do to confirm our interpretations, while sensing the timing of how long it's taking for price to develop or not. It's kind of like drawing a line in the sand and saying to ourself is the behavior of the market agreeing with our interpretation. That is why it is very important to have a sense of where the market is in the wave count which would corroborate whether to trade or stay out of the market till the smoke clears.

Just some additional thoughts for rumination. Have a pleasant weekend.

WGT