Guys ! we all know about Renko Charts, you can use this strategy which is really basic, simple but very very effective. For making good profit it's not that you need loaded Indicators and systems, sometimes a very basic system turns to be effective. Here i am discussing a system which always works. Clear entry and exit rules, you can use this system for scalping on 5 minutes to 15 Minutes charts as well but i suggest go with 1Hr chart for maximum profit. Requirements 1) Renko Chart 2) 20 Period Moving average - Simple or Expo no matter. 3) MACD with standard settings.
Now let's see when we have to take Long or Short entry:
Long Entry Rule: Renko Chart create a Blue Candle Which is crossing above 20 period Moving Average then take Long on closing of candle. - EMA shape points upwards and MACD crossing up for Long entry. Exit rule is Simple, as Renko chart form first Red candle exit trade on closing of candle.
Short Entry Rule: Renko Chart create a Red Candle Which is crossing Below 20 period Moving Average then take Short on closing of candle. - EMA shape points Downside and MACD crossing down for Short entry. Exit rule is Simple, as Renko chart form first Blue candle exit trade on closing of candle.
I have been using renko for a long and is the best system you dont even need indicators you can buy and sell on 2 block in on up trened and close trade on 2 blocks in diffrent direction the bigger your block size the better your trades will be
tonyinweb
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@JeanneRSA, Thank you so much , sir how to manage While the box repaints, I trade in Indian banknote setting box size 20, please guide me. Thank you.
tonyinweb
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@tonyinweb, correction: banknifty typed as banknote
JeanneRSA
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@tonyinweb, Hi tony i have seen the settings on tradeview renko if you use traditional setting it repaints but not on atr settings i trade mostly on metatrader 4 because i have got an ea that i made to trade for me on my renko strategy can't be infront of your computer 24/7 and the market never sleeps,what works best in renko is to have your charts open all the time then there will not be any repainting as soon as you close a chart and open again it will repaint, hope this helps you
tonyinweb
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@JeanneRSA, Hello Sir , thanks for your reply , I was practicing with fixed bricks. I will try with ATR , and sir I did not understand about the ea you have mentioned please guide me , thank you.
JeanneRSA
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@tonyinweb, Ea stands for expert advisor that trades 24/7 according to your trading system you just set your strategy and ea does all the trades for you
tonyinweb
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@JeanneRSA, Hello Sir ,Thanks a lot for you response and guidance , felt courageous to trade with renko after chatting with you , Thank you once again Sir and I wish all the best.
Regards
Tony.
timsedee
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@JeanneRSA, Hi Sir, as you have worked with Renko charts for long, whats the best amount to use for creating bars, 10 or 20, and also entry and exit settings you would advice?
JeanneRSA
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@timsedee, Hi timsdee it depends on the market that you are trading best is to play with your strategy on demo account till you get the right settings for the market you are trading, like bitcoin i trade on 4500 block size H1 chart, Gold i trade on daily chart 175 block size,Dow daily chart 800 block size, Eurusd daily 5 block size you have to play and see what works for you
Delman
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@JeanneRSA, Again I'm lost, even 1 atr and not much of the year there, say on O Realty Income, if 14, worse, if i choose a Traditional and say 0.03, yay awesome, 97% win rate on that stock, only to realize on my testing that it was all same day, and only moved say 7 blocks and so was not great. I can see benefits for maybe it confirming to stay in a trend perhaps, but being new to Renko, I trade Heiken Ashi normally, this just seems waste of time and my taking the black friday offer on upgrading myself. Any thoughts, because if I make it more, not wanna buy and wait a month until goes up say 1 dollar if i set it for a stock that is not moving much cause it's cheap say. Then by time moves it's red block, wasted a month in something didn't wanna be in then to find now I'm stuck to average down as usual, or have to sell for a loss, not good.