Renko day trading training for 2019 will continue to focus on the trading of these futures contracts: British Pound, Oil, and the Emini Dow and Emini Russell index futures. Of these, Renko chart trading for the British Pound gave the most consistent results and became my favorite to trade in 2018.
Renko day trading for the index futures had been fine for most of the year and was traded as often as the British pound. My typical Renko trading mix was to trade the pound until the index futures open and then switch over. The Emini Russell was my favorite.
However, this changed with the extreme amount of recent volatility. This volatility, along with fast markets from so much program trading, causes periods that become untradeable.
Learning Renko Day Trading Training
To begin with, you will want to set up your Renko charts and add the trading method indicators to them. The following webpage will include instructions and a video for setting up your charts. Note that all charts are currently using a Renko brick size of 3, with the exception of the Emini Dow that is currently using a brick size of 6.
You will need real-time tick data in order to make Renko charts. The data service that I use is called Kinetick and works well with NinjaTrader charting.
After your charts are set up, you will begin with the Renko day trading method training by watching the videos on the web page link below. These videos will give you the basic Renko trade setups and management, along with discussing filters for avoiding low odds trades. Additionally, these training videos will discuss the process of learning the Renko method and advancing forward.
And then you will want to watch previous Renko chart day trading videos, especially those from the last half of 2018. You can also watch the rest of the Renko training videos from 2018 and the 2017 Renko videos are still current, for how the method is being traded.
Renko Day Trading Training Videos 2019
Renko Day Trading Video461:
- Renko midline reject-price failure break, with mex flow but no fast momentum hook, because the hook has gone essentially from the upper extreme to the lower extreme -vs- the ‘mid-range’ to the lower extreme
- So, no this is not a Renko trade setup – however, it is a consolidation breakout setup because along with the price failure break and mex component there is also a consolidation triple bottom breakout
- At the time of the session break, the 3 trading prices on the chart from the previous day all belong on the chart AND price then goes up into consolidation between the center line and resistance
- Consolidation eventually breaks out to the upside and into a winning trade – was there a Renko trade setup or consolidation breakout setup to trade this price move?
- Absolutely not, there is nothing that is any more than a consolidation breakout only AND most importantly, why would you have entered into this breakout anyway, considering this was the 5th time that resistance has been hit
- Renko trade1 = price envelope reverse sell + midline reject with mex flow-fast momentum hook addon – when price trades back to previous resistance is there a price failure breakout trade setup to do a 2nd Renko addon?
- The price breakout that occurs comes after a 4 brick then 3 brick midline reject, giving a lower high triple break to enter the trade AND the components for a price failure breakout [not a failure break since this isn’t a break2]
- Additionally, there is a fast momentum hook on the breakout [and a discussion of a fast momentum trendline break] – this is a pattern that I have discussed as a favorite for trading 2nd addons
- The sells go to 2 +4+8+12 exits on strength and the 2nd addon is exited on a price extreme reverse, even though it is filtered as an actual Renko trade reverse – discussion of exiting on strength after a far above normal gain and not absorbing 5 bricks of giveback trying to hold the trade
Renko Day Trading Video460:
- Renko British pound price extreme reverse sell followed by a price envelope reverse addon BUT what do you do when the addon sell is stopped out and there is a price envelope reverse buy?
- The addon is stopped out on a 4 brick retrace and not the price envelope reverse – the price envelope reverse cannot be traded because mex continues to flow down when it occurs and it is also price filtered
- With a filtered trade both for price and momentum, hold the initial price extreme reverse sell that only has 1 brick of loss and would only have 3 bricks of loss if resistance hits
- After the price retraces 4 bricks it is followed by a price envelope reverse back into sell, with mex flow having always continued down on the retrace and diagonal breakout potential of 8 bricks before trading support would be hit
- This is a very good price swing resumption trade setup and is used as an addon short to the price extreme reverse that has been held [as described above] – this time there is a diagonal breakout that gives partial profits and a price extreme reverse buy on a brick test of support
- Price extreme resumptions can be difficult trades in that you are re-entering on a Renko trade swing that had just given a loss – be sure to understand the trade setup and profit components -vs- the previous loss and that these are 2 different trades
- Price extreme reverse buy followed by a price envelope reverse addon AND price ends up reversing again with a price envelope reverse sell – how are these 2 trades managed?
- Similar to the Renko trades discussed above, the addon is stopped out but the initial trade is held because the sell reverse is a filtered trade [filtered for momentum] and a retrace to support would only be 3 bricks against the open buy – hold the buy for a test-reject of support
- Support does reject [hold] and is followed by a price envelope reverse buy that is a re-entry [swing resumption] of the addon, which is followed by a breakout to a price extreme reverse sell and multiple partials on the 2 Renko buys – again, the key to these trades is using our Renko trading filters for trade entry and for trade management
- Renko trade discussion of a transition into consolidation and how there are 6 potential trades that were all filtered for a trading price and/or consolidation – and especially how these trade filters allowed us to avoid 6 losing trades
Renko Day Trading Video459:
- Renko British pound day trade = price extreme reverse buy with partial1 at the resistance price – if the next 2 bricks are red-green with mex flow and a fast momentum hook, would we then have a price failure [failure to hold as resistance] breakout addon?
- Similar to a question asked in the previous video, the answer is no and it would be a price breakout only because there is no failure component like (a) break2 with mex flow-fast momentum hook like in a price failure break setup (b) triple break of price like in an M pattern giving a failure breakout setup
- There is a resistance price breakout followed by a reject [as support] and a 2nd green brick, giving another midline [price] reject with mex flow and a hook – is this an addon setup AND how do you manage your trade[s] when there are only 3 green bricks and a price envelope reverse sell?
- There is nothing to do with the open trades as the price envelope reverse sell occurs 1 brick from support, making it a filtered trade and at that point, the Renko addon only has 1 brick against it – hold the open trades for a hold-reject of support
- Discussion of a bull flag pattern testing support on the price envelope reverse red brick, giving another reason for holding the trades
- Going forward now into the next day and session break, what do we do with our current Renko trading prices – discussion of price action at the current trading prices and if/why any adjustments are made
- Trade1 = support brick hit reject (a) price extreme reverse (b) price envelope reverse (c) 2 midline rejects with mex flow-fast momentum hook BUT all 4 of these Renko trades occurred before I started trading
- The first Renko trade of the day was another midline reject with mex flow-fast momentum hook, where mex flow is still below the upper extreme line – this trade reverses at trade2 = price extreme reverse
- Discussion of trade management for a price extreme reverse sell + price envelope reverse addon sell, including stopping out of the addon but holding the initial trade AND a re-entry of the addon short as a price swing resumption
Renko Day Trading Video458:
- Renko day trading prices right before the session break, and related to the first potential trade setup, appears to be a range high and low – is this where these prices come from?
- (a) the low price is a double bottom that is also the range low and is the support price (b) the range high price is more significant – it is the daily high and it is a left-right price that has price action relevance and has been moved across the chart and is the chart centerline
- (c) resistance is also a left-right price that was a previous high that shifted to support BUT broke out [shifted back to resistance] to the downside and we have remained below the price
- Renko day trade1 comes from a question I was asked and whether it was a price envelope reverse sell, but a closer look shows that although the envelope dots had shifted there was no mex cross – no trade
- Discussion of this trade question, along with another similar question – the question[s] do not take into consideration all of the setup components that are necessary for there to be a trade and probably come from there being a winning trade if done -vs- the same question not being asked if it had been a losing trade
- Note – there is the possibility that a non-Renko trade like a pattern trade doesn’t have the Renko setup components BUT it still would have to have the pattern setup components needed
- Renko trade1 = price extreme reverse buy + price envelope reverse addon – these trades continue to a +4+8+12 exit on strength and a double partial-price extreme reverse sell
- Immediately after the price extreme reverse sell brick, there is a green brick – is this a price swing resumption -vs- a momentum extreme that is chart read as a trade that would be into a price momentum divergence?
- Price extreme reverse sell + price envelope reverse addon where price moves to support and there is a midline reject with mex flow-fast momentum hook – is this a price failure breakout setup that could be traded as a 2nd addon?
Renko Day Trading Video457:
- Renko trading prices brought to the right (a) support and resistance were both extreme prices that still exist as trading remained inside of them (b) an inside price was adjusted for a swing double bottom
- We now have our ‘typical’ Renko chart that has (a) 2 outside prices for support and resistance (b) an inside price that is a support price when above it and a resistance price when below it
- BUT as trading continues to the right there is also a swing double top – does this price also get marked, because if so there will be 4 Renko prices on the chart?
- Discussion of a trading range -vs- consolidation-compression and especially what our indicators give for a chart read while inside the range
- In this case (a) mex is moving from its high-low lines at the range extremes -vs- midrange area braiding (b) the price envelope dots and midline both retain ‘reasonable’ slope -vs- moving sideways (c) the price envelope does not keep reversing after a couple dots – although I will continue to watch these for a transition into consolidation, it does not exist currently and the chart remains tradeable
- This is a unique situation but there are 4 trading prices on the chart – do note though that they aren’t so close to each other that the chart would cease to be tradeable
- Discussion of a price failure breakout -vs- price failure break – the difference being that the breakout would be entered as what would look like a filtered trade, where the failure break is entered as a break2 with mex flow and not filtered
- It is important that there is a price failure component to the trade setup -vs- a price breakout only – as will be seen from the 2 trades that are taken, each trade has a triple break component
- Also look for a trendline breakout that synchs with the price breakout, as this increases the breakout potential [continuation potential] for the trade – the 2nd failure breakout goes through price and across the chart diagonal trendline that finally gives us a range breakout
Renko Day Trading Video456:
- Starting with a look at the Renko British pound trading chart to the left of the session break, to a price that has very clearly lost any relevance that it previously had and should not be on the chart – moving to the right we see a price low and it’s this price that is currently trading chart support
- We do the same thing for identifying a resistance price and we see that it is a double top-triple top breakout reject near the end of the trading day -vs- a price that has been a left-right price that continued to be price relevant
- We have gone closer to the right to find extreme and/or price action prices for trading as previous left-right prices cease to be meaningful to the chart
- Price discussion for identifying a center line after locating support and resistance – again there is no left-right price to use in this area and actually appears to be no price to use at all, leaving us with only resistance and support and nothing inside of around 87 ticks
- Just like I don’t want a chart that has multiple prices that are close together, I also don’t want a chart without a center line and especially no other trading price inside of 87 ticks of range
- A closer look at the chart identifies this price action (a) lower high-triple breakout that goes to support (b) reverse from support and a price failure break of the same price that goes to resistance – this is clear price action showing the relevance [chart draw] to this area and becomes the center line
- Price adjustment from the center line just discussed to current price action from the day’s trading, where there is a double bottom low that is also a brick test-reject of the low after the session break and support is relocated to this price – support and resistance remain the same
- Renko trade1 confirms the relevance of the resistance price – the high after the session break is a brick break-reject of resistance after an up move from the low [the price that became the adjusted center line] AND this is followed by a price envelope reverse sell + midline reject with mex flow-fast momentum hook addon that partial and move to a price extreme reverse
Renko Day Trading Video455:
- Renko British pound day trading long price extreme reverse with a price envelope reverse addon – partials on both with a stall at price on multiple bricks, followed by a 2 brick breakout giving partial2 on the initial
- The 2 Renko buys were followed by a price envelope reverse sell that was underneath price and not filtered in any way – meaning that it was entered below the center line that was price support and there was no straddling price action or midrange momentum braiding that would show a transition into consolidation
- Renko trading price review and a question about whether there had been any price action that would cause for a price adjustment and/or showed that any of the current prices weren’t still relevant and shouldn’t be moved to the right?
- (a) resistance = 3 brick break rejects followed by a brick miss rejects – relevant (b) inside price = only price action is the 3 brick test than 2 brick breakout and immediate reverse – no better price and shouldn’t be adjusted
- (c) support = 3 price tests that include a brick break and brick hit but also a 3 brick break followed by an immediate reverse that includes a retest as support – I feel that the price action [including all the price action across the chart that identified the price] continues to show relevance -vs- adjusting to the breakout low that makes no attempt to shift price from support to resistance
- Renko British pound day trading picks up after the session break with a discussion of the first potential trade = midline reject sell BUT with no hook and mex is ‘braiding’ at the lower extreme – these trades are not done because they have a momentum filter
- Discussion of multiple trade losses [my first 3 trades of the day are losing trades] and still continuing to trade -vs- stopping trading both because of the losses and the ‘method not working’
- Continuing to trade the same base Renko day trades give (1) price envelope reverse sell with +4+8 double partials and a +9 price extreme reverse (2) price extreme reverse buy + price envelope reverse buy with a +4+8+12 exit on strength AND a price envelope reverse buy that gives +4+8 double partials and a +11 price extreme reverse exit
- No, I don’t expect to follow 3 losses with winners of this size but in this case, it did happen – the bigger point is that the losing trades were base Renko day trade setups that just didn’t continue to profits, while the last 3 trades gave outsized profits