Animal Farm (Renko system)

It shows in the bottom left hand corner of his chart - it's 8 mean renko.

Thanks.
Forgot he's using OVO's suite

so it's like a regular 4 pips brick size, mine still looks nothing like his and choppy as hell.
Maybe it's the broker and the Renko generator combined.

OVO is well worth the investment IMHO. You can of course get a free 14 day trial to test it for yourself.

I did, didn't look anything like that nicely streamlined one in the screenshots here so I switched back to my old Renko generator.

Looks like we are getting chart examples. Bat I will take you up on t hat beer if I am ever in the neighborhood. What a nice trade.

Rea I will try to get some info on your charts posted in a bit. I would go withe OVO if you can, then we are all using the same generator.

Here is a 25 brick chart I was just in and out of.



I took the breakout at 1 after that nice Saddle point and unfortunately had my trailing stop set a bit too tight, so I was stopped out at 14.

(I like the way we can identify those fractals with RM.) A fractal trailing stop would have been excellent here.

Note how the Fib was very nice. Extending the Fib into a trend line is a useful trick too.

I would wait for the Ten Pip Bricks to pull back to the Green E line on the Ten pip chart and try for an entry there but today is the opening of school and all we retired teachers are going to the "To Hell with Bell" breakfast.

Later.

Just updates on my charts.
EURJPY went on without me.
USDJPY went on without me, placed some pending orders but didn't have the margin to carry them through (a martingail EA is eating up my balance).
XAUDUSD..... nice ride, I'm still not sure how to trade it well.

All charts are 10 pip bricks, the XAUUSD is a 100 points brick size.

Enjoy your breakfast, Wab! )))



What a catchy name.

Looking back at one of your charts Rea:



I would do the larger degree HH HL as illustrated. That way you know if you are trading into a correction or with the dominant trend. Also watch for those Saddle Points... classic Alligator trapped between two opposing fractals.

Finally the AO divergence is a strong hint that the trend is changing.

(That XAU breakout that you also showed is what we try to get.)

BTW. Breakfast was great.

I missed this morning trade as I was preaching in the retirement village. (Some things are even more important than trading!)
But check out how these two fibs worked. Gold for the first impulse wave. Black for the second. Very strong. Look how price reacted to gator teeth!
There was no news to drive this move that I could find....so I expect it was the banks playing money making games. But the road map did show the way.
Blessings Bat.

NZDJPY

I can't decipher where to enter.
if I wait, it might be like USDJPY where I missed the move, if I don't it retraces.

More on that later if I have the time.

At a glance, blue is your trend and purple the counter trend. Try and figure where the next green E line will arrive (probably at blue 1) and monitor that.

To work out my trading plan for today I zoomed right out and did the Elliot wave thing.
Don't know if its correct but it looks good. Semafor settings period 1 0, Period 2 35, period 3 70.
Now waiting for the B wave pullback and I'll hit C when the roadmap gives me some clues.
Stalking the trade rather than punting.

As long as you can recognize the trends and the counter trends and stay aligned with the trends, all will be fine. Try and keep an eye out for saddle points too.

I have been doing some testing with smaller bricks. I am trying to tune them to my LOC trade manager and also to an ea that I am working on.

However, I have been pretty busy with other things so not as much time as I want on those yet. Should have a chart or two to post soon.

Here is a demo trade, as I attempt to fine tune my trade manager.

It is a counter trend trade. You can zoom out to see that, but I am trying to fine tune my trade manager - so lets see how that goes.

I want to trade a 0.2 lot on each entry.
After the price moves up 8 I want to take profit on half of the trade.
I want the stop moved to lock in one pip of profit on the remaining 0.01 lot.
I want a trailing stop to move up one pip behind each fractal that forms as the price moves on ... if it does.

(I love LOC Partial for this type of thing.)

So here is how this strategy is going:





I noticed a Saddle point between 3 and 4 and opened a trade above the reversal brick.
I placed a pending order just above 1.

Both trades were filled and LOC placed a profit target up 8 above the entry.
Both partial profits were hit and 0.01 of each lot was closed.
The stops on the remaining 0.01 of each initial lot was moved up to lock in a pip of profit.
A spike closed out one of those for a 1 pip profit.

I placed a pending order at 5 to show where I would try for a third lot, but this is a counter trend so I won't follow through with it.

Meanwhile I hope for a fractal at 6. If I get that fractal LOC will move my stop up to one pip under 6.

I don't have to do much now, because LOC handles this so nicely.

(I do need to experiment with the settings to get it working at peak efficiency.
The spread is nice and tight so maybe it can be done with these small 25 bricks.)

A little while later, a fractal forms at 6 and LOC moves the stop up to one pip under the fractal.
A profit of 58 is locked in now on that last part of the trade.



I will monitor the pending order at 5.

My potential red E line is at -7.

(RM does not show that but I can figure it out by zooming out and looking at the higher degree structure. -7 is also the end of my Fib line. )

My stop gets hit. Now lets look at that Fib when we zoom out. (That is where the whole game plan is revealed.)



My trades all made a profit as price corrected towards that magic zone between 61.8 and 78.6%

I felt that I was really in tune with this trade. I knew where to draw the Fib and expected it to correct to the 61.8 % level. That gave me enough room to try for a small profit.

A good trade manager is a God send for this type of a trade.

Next, I went short, below 6. and I will leave LOC to manage it.

Let's see how that short works out tomorrow. Time for bed.

is this setup works for any renko box size...or 4box size has some speciallty...??

HH HL LL LH works on any chart. It is a bit easier to see on Renko Charts.

Personally I use 10 pip bricks but I am experimenting with smaller bricks. Some people use bricks as small as 80 points (not 80 pips) and do well with it.

Basically, it is a way to use Elliott Wave with minimal Elliott Waver counting. If you want to understand it you must read the whole thread, as it is a work in progress not a nicely packaged system. It requires study and thought. Have fun.

SO how did my attempt to look really clever and leave LOC in charge work out?

I was stopped out. If I had left the pending order at 1 it would have been filled, taken profit on half
a lot at 8 and the rest of the trade would run on to the fractal at 14 before it stopped out with a profit
of 26.4 pips - 1 pip for the trailing stop setting. A total of 26.2 counting the early 8 point profit.

Here is the chart.



It just shows that things can change and you have to adapt your thinking. Of course I was sleeping (have to
do that sometimes) and taking a little chance. Sometimes that works so well, sometimes not.

The point behind this was to show you how to use LOC as a trade manager. It doesn't think for you it just does
as you tell it to. I could have left that pending buy at 1 and it would have performed flawlessly. It can't decide to
do that for me, but it will follow instructions to the letter once I tell it what to do.

I will see if I can catch a better one to illustrate LOC again but I have a busy day ahead, so maybe not until tonight.

Well I didn't wait until tonight. I am working on a wedding ring I have to have done today, but the market is nice and clear at this point



A quick zig zag counter trend and I was in short.

I took the E line at -13 and adding two pending orders at -11.

All orders are filled, partial profit levels in place and trailing by fractals set.

First trade is already stopped out with the LOC levels profits taken. One half at 8 and the other with a locked in pip.

The two pending trades at -11 are at both locked in and have taken a half lot profit.

Let's see how kind the fractal trailing is going to be.

Back to work on that ring ... or a bride is not going to be happy on Saturday. (Ah romance ... got to love those last minute orders.)

I have a question regarding your MM. Using partial closes, are you not worried about having only 1/2 of your original position exactly when the trade idea is working out? If you are wrong, you will get stopped out with "both" of your positions.

... and we get a fractal stop.



A nice trade, three positions taken all took a profit at 8 and moved the stop to lock in a pip on the second half.
The first trade from the red E line gets stopped out with two small profits.

Trades 2 and 3 (pending orders at -1) went on to trail the fractals until stopped out at -6 and -8
( A bit of slippage probably accounts for the different stops there.)

Six profits taken on three entries.

The point behind this is to show you that even on small bricks the structure is there. In fact it can even be traded on a M1 chart if you can get around the chunk the spread takes, but Renko is so much nicer.


Now, I have to finish off that ring.