Learning Renko chart trading strategies, and how to best trade Renko charts successfully. The training will with first studying the basics of the Renko day trading method. Taking this step will include learning all of the trading indicators, day trade setups, trade setup filters, and trade management.
From here move to study the Renko trading system, since it is easier to learn because it is a more mechanical way to trade. However, do understand that the system setups are the same as the method setups but traded without filtering for price and market conditions.
As you move forward with Renko system trading, also compare these trades to what trades would have been done if the method and all Renko strategies had been traded. By doing this you will begin with a simpler approach to trading while learning about the Renko method. One of the key things that you will find out is what is the impact on trading by using setup filtering and determining which way of trading would be most profitable.
One of the key things that you will find out by studying the system and method together is the effect on trading by using setup filtering. And thus, you will be able to determine which way of trading would be most profitable, the Renko system or method.
Practice trading the Renko system trades first on paper, and then ideally, with real money once profitable. From this step, you can then decide to move to the trading of the full Renko method.
Learning The Renko Trading Method
- Renko Method Video Manual Indicator: (1) price envelope reverse trade setup (2) indicators and trade setup components (3) trade management – initial stop, adjusted stop, and partial profits (4) price and consolidation trade filters.
- Renko Method Video Manual Indicator: (1) extreme reverse trade setup (2) indicators and trade setup components (3) trade management – initial stop, adjusted stop, and partial profits (4) price and consolidation trade filters.
- Renko Method Video Manual Indicator: (1) midline reject trade setup (2) indicators and trade setup components (3) trade management – initial stop, adjusted stop, and partial profits (4) price and consolidation trade filters.
- Renko Method Video Manual Management: (1) trade management rules outline (2) adjusted stops and price filter hold (3) partial profit amounts for the 3 system trade setups (4) chart review for all system trades and the types, along with the related management and/or entry-exit filters.
- Renko Method Video Manual Management: (1) renko system-method rules review (2) you should now be able to mark this chart the same way as I have (3) trade setup types and setup components (4) management for entries and exits along with price filters.
- Renko Method Video Manual Trading Review: (1) system-method setup odds – comparing the price envelope reverse to the midline reject (2) trade setups odds and profitability are based on market conditions (3) trade setups that are typically profitable [profitable greater than 50% of the time] is not profitable when traded inside of consolidation or directly into resistance or support prices (4) trading into diagonal slope –vs- trading horizontal breakouts.
- Renko Method Video Manual Trading Review: (1) system-method setup odds – the midline reject confirms the price envelope reverse, but the price envelope will be a better price [or the same price] (2) momentum and diagonal slope impact on price movement and profit odds (3) price breakout –vs- price failure break – price breakout trades [swing resumption] that are traded (4) 3 brick profit target on addon2 as a function of the odds of a partial profit on a later trade entry.
- Renko Method Video Manual Trading Review: (1) system-method setup odds – price envelope reverse and midline reject trades have negative odds inside of consolidation (2) transition into range [that may be tradeable] and/or into consolidation that is untradeable (3) adjusting trading prices for consolidation ranges (4) reading momentum leading into range-consolidation and while inside.
- Renko Method Video Manual Trading Review: (1) system-method setup odds – price extreme reverse (2) unlike the price envelope reverse and midline reject, consolidation won’t be an issue with price extreme reverse – price and momentum will be what affects the trade setup odds (3) the price swing resumption setup often pairs with the price extreme reverse as a ‘reverse back’ – price and momentum determine when this trade will be done (4) the further benefits from the price extreme reverse for limiting profit giveback on an open trade.
- Renko Method Video Manual Trading Review: (1) Concept review video1, both for some terms, setup components, and trading a system-method –vs- system only – going back over the trades and setups from the previous video chart (2) why a price setup is not necessarily tradeable – indicator –vs- full trade setup (3) do you know the following – shift-reject, PMD, entry against momentum, PER-PSR, price filter (4) system-method trades are filtered and/or avoided because of not having all setup components or room to price AND this trading tact increases profitability over a system only.
- Renko Method Video Manual Trading Review: (1) Concept review video2 – discussing more trading language that has specific meanings-descriptions in our method (2) discussing price filtering and avoiding trading a setup that doesn’t have at least 3 bricks of room to a method trading price – yes, you will miss some winning trades with this filter, but you will avoid more losing trades (3) price test|price test-reject – a price test is based on a move to a method price that misses by 1 brick-breaks by 1 brick-hits the price with the brick high-low – the reject is when price goes back in the previous direction to continue that swing (4) price swing resumption based on a price envelope reverse back to the previous direction and a break of the swing high-low – and reading momentum leading-lagging for continuation or a price momentum divergence.
- Renko Method Video Manual Trading Review: (1) Concept review video3 – finishing the current chart review about trading language that has specific meanings-descriptions in our method (2) answering the question we ended the video with about whether the blue circle was a PER buy – further discussing price filtering and price shifts from sup-res to res-sup, along with where to start consecutive brick counting (3) price shift-reject trade entry –vs- system indicator trade setup components – price breakout only –vs- price failure break (4) discussion about possible discretionary trades in the system method, when a setup does not have all necessary components, but does have components with very good risk-reward – along with further discussion about what discretion when trading means.
Learning Renko Chart Trading Training Videos
Learning Renko Chart Trading Video10:
- Continuing from the previous video, where we discussed the Renko trading system trades – now we want to compare these trades to the Renko trading method trades
- The best learning Renko trading approach is to (1) compare Renko system trades to Renko method trades (2) determine which system trades couldn’t be traded by method and which method trades couldn’t be traded by system (3) determine whether there were more missed method winners or more losing system winners that method would have avoided — I would recommend this as a study approach for all Renko system traders
- The Renko trading chart will show 4 system trades that weren’t method trades – 1 of these was a winning trade and 3 were losing trades
- The Renko trading chart will show 3 method trades that weren’t system trades – all 3 of these were winning trades and were all price envelope reverse trades without a 5+ Renko brick previous diagonal — in all cases I want you to note the room to next support or resistance -vs- having only 3 bricks of room at an extreme like a high or low
Learning Renko Chart Trading Video9:
- After learning the Renko trading system, do you want to begin trading the Renko method?
- Over the next 2 Renko training videos, we will (1) review all system trades and their profitability – trading 2 contracts and taking a +4 brick profit and +8 brick exit when also trading an addon
- Would you have more losing trades OR missing winning trades is you had price filtered – price contraction and/or consolidation doesn’t become an issue during this trading period?
- Were Renko price envelope reverse trades without a diagonal losing or winning trades?
- What was the more profitable system or method?
- Further discussion on price extreme reverse management when the extreme high-low breaks by a brick – take a full stop if you would be exiting against mex and into a price momentum divergence
- EIA reports – the oil report is on Wednesday and the report on Thursday is for natural gas and wouldn’t impact Renko oil trading — NOTE – on a holiday-shortened report like next week, the oil report will be on Thursday after the natural gas report at 10:00 am central time
Learning Renko Chart Trading Video8:
- Continuing with the last Emini NQ Renko chart and the discussion of price continuation -vs- price contraction and ‘clues’ to use for a potential move sideways – answering the question WHAT has to happen for price to continue
- Looking at the last 2 trades [price extreme reverse buy + price envelope reverse addon] system has no considerations at all about moving sideways BUT method is different – look at the previous high-reject as support shift line as a target and how that adds difficulty to moving through the diagonal
- On a different topic, I wanted to discuss the price extreme reverse exit after the extreme brick breaks by a brick [giving a 3 brick loss exit] – and 2 different examples where I would exit the trade [if no price swing resumption reverse] AND where I wouldn’t exit the trade, because of how extreme momentum was and feeling it was better to hold for a full stop and a price momentum divergence
- Discussion of how we moved into a range between the swing low-momentum extreme at 0 – and the retrace high that didn’t even make it back to the shift line resistance, let alone through the previous diagonal
Learning Renko Chart Trading Video7:
- Emini NQ Renko system trading end of day and learning to read the Renko chart for price movement – continued discussion of ‘time of day trading’, with mid-day typically the ‘worst’ trading period BUT ultimately making your decision on chart reading for price continuation -vs- price contraction
- When beginning to trade, what was the preceding chart condition and was there any reason not to start trading – again looking for consolidation or an untradeable sideways range that would be entering into?
- Considering the first trade setup was a price extreme reverse, you would not be inside consolidation and most likely not inside a range – these may have occurred but a breakout that gave a price extreme reverse would tend to be a price move past consolidation and a wider area to trade
- After start trading does the chart go into price contraction or consolidation and what areas might you be looking at for clues – discussion of period before the price extreme reverse where there was a losing price envelope reverse trade followed by another price envelope reverse that couldn’t be traded because no previous diagonal — AND what a move into consolidation what have looked like -vs- the breakout we actually got
Learning Renko Chart Trading Video6:
- Discussion of Renko trading charts and the tradeability of the chart – do we have a visual read that shows continuation OR are we seeing movement into a sideways range and/or into consolidation — with further discussion of seeing this when looking at the chart real time as trading
- Renko chart reading for continuation -vs- contraction is something that is very necessary to study and be looking for – there are too many [unfortunately] trading periods that shouldn’t be traded and this is something to start looking more at for system as well as method
- The chart happens to be the Emini NQ, which I haven’t traded so much recently – but I have been looking at it a lot more because of thinking of volatility increasing in this index
- But the major reason wasn’t the contract traded as much as the Renko chart visual itself and seeing where are definitely in a trading period that is good for price continuation -vs- where on the chart it starts to show a move that could be going into a sideways period bound by a higher low and lower high that didn’t trade through the previous diagonal
Learning Renko Chart Trading Video5:
- Discussion of Renko chart consolidation for method and system
Learning Renko Chart Trading Video4:
- Discussion of Renko chart consolidation for method and system
Learning Renko Chart Trading Video3:
- Discussion of Renko trade setup components -vs- Renko trade setup filters – for instance, not trading a price envelope reverse because there is a lag in the mex cross is based on a missing setup component, where not trading a price envelope reverse because of room to price is based on a setup filter
- Study every Renko system trade as if it was a method trade
- Would any losing trades be avoided through filtering
- Would any losing trades be missed through filtering
- What was more profitable the Renko system or method trades
- Do this system -vs- method study even if you only want to trade Renko system trades because you think you can meet your profit objectives – because how can you really make this decision without learning and comparing what else is available to you
- Notes about the price envelope reverse and price extreme reverse since these were the Renko system trades that occurred to them, along with further discussion of these trades when the method prices are added to the chart and how they affected the system profits discussed in the previous training video
Learning Renko Chart Trading Video2:
- Method first and then system is not a waste of time as you will be about learning all of our Renko chart trading strategies
- But you will be able to work on Renko trade execution with a ‘clearer’ mind
- The Renko system setups will be the same but you will be able to focus on these without concern for filtering
- And maybe trading system could even fulfill your trading objectives
- What if you could make $200 per day trading 2 Renko system contracts – would you ever learn to trade the Renko method
- Discussion of the results for the Renko system trades – trading 2 contracts with +4 bricks initial profit and +8 bricks exit, along with a -4 brick initial stop
Learning Renko Chart Trading Video1:
- I plan to do some new videos for learning Renko chart trading – not just for learning the setups and strategies for our trading method but as a step by step approach for learning these and starting to trade
- I started working with the Renko system without method trade filters – knowing that there were trade-offs between ease of learning and the most profitable way of trading
- But regardless of profitability, if the Renko system cannot be properly traded then the Renko method won’t be able to be profitably traded
- And if your study-practice does show profitable Renko system trading – then why not start actually trading it
- I still want everyone to start with the Renko method and what I think is the best way to eventually trade. A series of videos for learning the basics of the Renko method can be found at – https://renkocharttrading.com/renko-method-training-2016 – go down to the heading Renko Method Trading
- As a step by step learning approach
- Learn the basics of Renko method
- Practice with Renko system trading
- Study every Renko system trade as if it was a Renko method trade AND determine (a) would any losing trades be avoided through filtering (b) would any winning trades be missed through filtering (c) what was more profitable – method or system