Renko Day Trading Indicators Combination Strategies

In the previous Renko day trading indicators video, I tried to explain why there wasn’t a single best Renko indicator.  Instead, I discussed how indicator combination strategies would provide more consistent and profitable trading.

Additionally, I showed you the indicator combination for the price envelope reverse trade setup.

Best Renko Trading Indicator

I now want to show you our other 2 Renko setups:  (1) Midline reject (2) Price extreme reverse.  Additionally, we will talk about the Renko day trading indicator combinations that make up these setups, along with discussing the momentum component for each.

Renko Day Trading Indicators Setups

Renko Day Trading Indicators Combination Strategies

Price Envelope Reverse

  • You will remember the yellow circle is the price envelope reverse, and how the fast momentum indicator led the slow momentum indicator
  • And then the price envelope dots reversed and the trade was done

Midline reject

  • This trade setup is a continuation trade at yellow circle2, meaning it is part of the same trading swing as the initial price envelope reverse – we use it as an addon trade strategy
  • The trade setup components are a reject of the gray midline, with a fast momentum hook, and slow momentum continuing to build
  • Understand that the fast momentum hook occurs when the indicator goes below its upper extreme and then breaks back, or hooks, above the extreme again – this is a very good indication of momentum continuation

Price extreme reverse

  • Our 3rd Renko day trading indicators setup is a reversal trade at yellow circle3
  • The trade is based on both momentum indicators being extreme, with fast momentum breaking below the upper extreme, while slow momentum is crossing with the blue line under the purple line
  • The trade is taken after 5 or more consecutive bricks, counting from the price envelope reverse or last trade setup – enter on the counter brick
  • Yes, this trade is against the price envelope direction – but we have seen that the combination of this many consecutive bricks + the momentum extreme, can be traded profitably as a reverse

Renko Day Trading Setup Filter

The last think I want to discuss on this video is the trading strategy of trade setup filters, meaning that there is a condition that will keep us from taking one of our method trade setups.

We have trade setup filters for price, entries against momentum, and trading inside of consolidation.  In this video I am going to show you a price filter – that trade setup filter says to avoid a trade unless it has 3 or more bricks of room to a support or resistance price.

  • If there was a price brought from the left side that was resistance 1 or 2 bricks below the price extreme reverse counter entry brick, then that trade would not be done

Click Link to Watch Video: Renko Indicator Day Trading Strategies

 

2 Comments

  1. Hi Gary, these are not ‘canned’ NinjaTrader indicators, but trading indicators that I have coded for our method and trading group.

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