Renko Day Trading Training Videos 2019

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, leading to more Renko British pound futures trading.

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 Kinetick and works well with NinjaTrader charting.

Renko Day Trading Chart Setup

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.

Learning The Renko Chart Trading Method

And then you will want to watch previous Renko chart day trading videos, especially those from 2019 and the last half of 2018.  You can also watch the rest of the Renko training videos from 2018 and 2017.  These Renko videos are still current, for how the method is being traded.

Renko Chart Training Videos 2018
Renko Chart Training Videos 2017

Renko Day Trading Training Videos 2019

Renko Day Trading Video552 553 554

Renko Chart British Pound Day Trading

Renko Day Trading Video549 550 551

Renko Chart British Pound Day Trading

Renko Day Trading Video547 548

Renko Chart Trading Emini Dow Jones Futures

Renko Day Trading Video544 545 546

Renko Chart Trading Emini Dow Jones Futures

Renko Day Trading Video542 543

Renko Chart Trading Emini Dow Jones Futures

Renko Day Trading Video539 540 541:

Renko Chart Trading Emini Dow Jones Futures

Renko Day Trading Video536 537 538:

  • Renko chart trading Emini Dow using a 6 brick Renko chart, focusing on possible method adjustments for the larger brick count AND that these adjustments do not apply to ‘base’ Renko and a 3 brick chart
    • Discussions for adjustments for (a) 3 brick partial and 3 brick stop, since these would be 18 points compared to the ‘base’ method 4 bricks of 12 points (b) 4 brick partial1 and a 3 brick partial2 and/or target exit – again as a function of the larger point size and amount price would have to move to get the second partial-target
    • While I mentioned I was ok with the partial2-target adjustment, I do not want the stop size or partial1 to be reduced to 3 bricks – WHY – because the reasons behind moving to a 6 brick Renko chart imply that there are moves that are big enough to trade the +4 partial|-4 stop on the initial trade
  • Renko Emini Dow trading discussion for the overnight -vs- the day session, which is inherent in index future trading but regardless of this ‘switch’, the first potential trade after the index open still uses the chart read and any trade that still exists from the overnight
    • Additional discussion for Renko brick count for the price extreme reverse trade setup

Renko Chart Trading Emini Dow Jones Futures

Renko Day Trading Video535:

  • Renko chart trading Emini Dow using a 6 brick Renko chart, with the video especially discussing the differences in the potential benefits and tradeoffs when using a larger brick count -vs- the ‘base’ 3 brick chart
    • A larger brick count could be tried on any of the Renko futures charts but it is important to understand the implications – in this case, we saw the benefits of trading a 6 brick instead of a 3 brick chart, which was a Renko brick count that was changed because of additional volatility in the indexes
  • Renko brick size benefits and tradeoffs start with a larger brick count having the effect of slowing the chart down along with decreasing the brick count in a trading swing and especially the number of 5 brick price extremes that give a counter brick and a swing resumption that can’t be re-entered
    • Additionally, a larger brick count will give fewer trades in a given trade period because there will be fewer price envelope reverses – the video we discussed actually had only 1 trade [partial1 + target exit] and no price extreme reverse
    • Where a look at the showed (a) 5 or more trades (b) exits of winning trades that were exited [full brick close below the midline] that could not be re-entered (c) multiple losing trades
      • The Renko trading swing looked at was a total of 48 points – again, the 6 brick chart stayed ‘in-buy’ the entire time from the entry to the resistance price
  • Although we saw the benefit of a larger Renko brick count it was because of the swing size and continuation, where having 1 trade only was a good thing
    • However, the larger brick count could also be a problem when there are more shallow ranges, including additional trades and price envelope reverses – for instance, consider a sideways move that only goes 3 bricks back and forth, giving consolidation and/or trades that do not get a 4 brick profit before reversing
      • These 3 bricks are 6 bricks on the 3 brick Renko chart, giving enough room for a profit and maybe some price extreme reverse entries
    • Also, understand the additional initial risk from a larger brick count, because you would still begin a Renko trade with a 4 brick stop or 4 brick partial – yes, the profit potential is also greater but you would still have to accept the bigger risk
  • Trying a bigger Renko brick size on any chart is fine, just understand and accept the benefits and tradeoffs – AND regardless of brick size, be sure to avoid trading inside of consolidation

Renko Chart Trading Emini Dow Jones Futures

Renko Day Trading Video533 534 535:

Renko Chart Trading Futures Day Trade Indicators

Renko Day Trading Video530 531 532:

Renko Chart Trading British Pound

Renko Day Trading Video527 528 529:

Renko British Pound Day Trading Chart

Renko Day Trading Video524 525 526:

Renko British Pound Day Trading Chart

Renko Day Trading Video523:

  • Renko British pound trading ended the day with a break to the high of the day and a double hold before a price envelope reverse – is this now the resistance price for trading the next day?
    • The question asks whether this right side high is resistance -vs- a left-right price that is right above this area and/or are both prices resistance – I do not want 2 prices that close to each other [and with the inside price there would be 3 prices inside of 30 ticks] and used the left-right price as the most chart relevant
  • I missed the beginning of the Renko trading swing that was underway (a) price envelope reverse buy (b) price reject-price resumption addon – if trading I would have had a price envelope reverse sell that was filtered for price and mex and would have been held at support with only 3 bricks against the trade
    • (c) Renko trade1 was a midline reject with mex flow-fast momentum hook and addon2 became the initial trade – the trade gained 4 bricks of profit and then went to a price momentum divergence high
    • Discussion of the price momentum divergence high and the entry timing for a sell against the midline -vs- the risk of a midline reject against the trade
  • Renko price momentum divergence sell + price envelope reverse sell addon gain +4 bricks partial1 +4 bricks addon target exit and go 2 more bricks with good mex – holding the trailer for its target exit
    • Discussion of Renko trade management for the trailer when before getting the target exit there is a price momentum divergence with only 1 brick to support – the risk-reward ‘says’ to take a +7 exit and protect against giveback -vs- attempting to gain 1 more brick
  • Renko price momentum divergence buy + price envelope reverse addon, with the initial trade gaining +4 bricks partial1 and then there is a midline reject addon setup – do you take this trade as addon2?
    • The Renko addon2 is also an addback to replace the partial1 and there is only 1 more brick needed to get the target exit for addon1 – take this trade
    • Management discussion for the trailing contracts and benefit of the addback, with the initial trading gaining a +8 target exit at resistance AND still having an open contract for a possible break [2+2 trading or more doesn’t have this issue], which did occur

Renko British Pound Day Trading Chart

Renko Day Trading Video522:

  • Renko British pound trading and flat AND this is the key consideration; if you were still planning to keep trading and/or had started trading at a later time – is there any ‘chart read reason’ to be flat and/or stop trading?
    • My answer is no, I went flat and stopped trading because I had been trading for an extended period of time and was ready to stop – but if long with additional open contracts, the chart showed continuation AND there was nothing in the chart that showed price consolidation-compression
    • That being said, this kind of very good 2-way trading cannot continue indefinitely and it’s important to note when the trading environment might change – for instance, we do have good mex flow but are also a brick above resistance, which could become a brick break reject-lower high
  • Price does go to a lower high, with mex just making it to the extreme line – is this a price momentum divergence high and if yes, where would a short be entered?
    • No price momentum divergence high because there was a momentum high with the price high so not divergent BUT if so, the trade would be entered on the break of price and the midline because otherwise, it was a filtered trade
    • Renko price envelope reverse short followed by a price envelope reverse buy – how was the short trade managed?
      • The price envelope reverse buy was on (a) a red brick (b) at the resistance price (c) against mex flow – with only 2 bricks against the trade do nothing and then do a swing resumption sell addon
      • +4 brick partial1 +4 brick addon target exit and price moved 2 more bricks – continue to trail the open contract for a price extreme reverse or a +8 target exit
  • Renko price extreme reverse buy that went 3 bricks against the trade BUT this was held for the stop and went to a price momentum divergence low – do a PMD extreme buy addon and note the discussion for why the trade was entered above the midline -vs- on the counter brick with a support price backstopping the trade
    • Management discussion for the trailing contract after the +4 partial1 +4 addon target exit – and the continuation risk-reward hold that gained a +11 brick double top target exit

Renko British Pound Day Trading Chart

Renko Day Trading Video521:

  • Renko British pound trading and decisions regarding continuing trading, especially after a difficult trading period that has consolidated and/or compressed into a tight range that barely has more than 3 bricks of room to support or resistance – was that indicative of this trading chart?
    • No, the difficulties became more related to momentum and continuation and in a couple of cases the filtering of winning trades – but the period was still profitable with no consolidation at all and there was no ‘chart read reason’ to stop trading and/or look to a different chart [like oil at this time of day] to switch too
    • Also, a further discussion that is often discussed, which is 2+1 trade management and profit giveback -vs- the frustration that is likely felt when flat from a target exit just to watch a breakout that would have gained another 4 bricks [+4+12 -vs- +4+8]
      • I continue to say that management and profit consistency and reducing giveback is more important than some missed profits, with this objective leading to the ability to add some trading size
  • Renko price extreme reverse short with a filtered price envelope reverse addon, which was followed by a midline reject with mex flow-fast momentum hook that did give the addon – IF the price envelope reverse addon could have been done, would this Renko setup be a good addon2 setup?
    • (a) midline reject-fast momentum hook (b) very good mex flow that was not to the extreme line (c) previous swing diagonal breakout potential that was 7 bricks from support – would have done the 2nd addon, especially considering it was an addback to the Renko initial sell partial profit
  • Price support brick miss test Renko price extreme reverse buy + price envelope reverse addon and another Renko addon2 decision (a) midline reject-fast momentum hook (b) very good mex flow-only at the middle of the momentum range (c) although only 3 bricks of room to resistance but for this trade price resistance wasn’t the high, so this is not a double top test
    • Did the Renko addon2 and then discussed the trade management for the last contract[s] -vs- a +7 exit – also in the context of knowing this was the last trade that I was going to do
    • I stopped trading because of the time of day and amount of trading already done – was there any ‘chart read reason’ to stop trading?

Renko British Pound Day Trading Chart

Renko Day Trading Video520:

  • Renko British pound trading continuing from the previous video, flat after a +4 partial1 +4 target addon exit +7 initial trade exit – why flat at 7 bricks -vs- 8 bricks or a trailing stop?
    • The question again addresses risk-reward management for continuation -vs- giveback and at +7 bricks we have the following (a) the price is 1 brick from resistance (b) both mex lines have turned sideways and overlapping near the max extreme
      • (c) if we don’t get the +8 brick target and this is a brick-miss test of resistance that reverses from the extreme, give back will be at least 3 bricks – go flat with 1 brick reward -vs- 3+ brick risk
  • The price hits resistance at the brick high and rejects but no divergence and then price hits resistance a 2nd time and rejects and this time there is a Renko price momentum divergence sell – the trade is entered breaking the midline with the resistance price backstopping the trade
    • There is a price envelope reverse addon, which is followed by a midline reject with mex flow-fast momentum hook – is this a good setup for a 2nd addon?
      • If this was a double midline reject, thus including a triple break entry, it would be a favorite addon2 setup – I did make the decision to do the trade with the following chart read (a) previous swing diagonal breakout potential of 6 bricks to support (b) textbook fast momentum hook (c) mex flow with both of the lines at-above the middle of the range
  • The price now hits support and the brick low, giving a reject of support and a Renko price extreme reverse buy, followed by a price envelope reverse addon – consider 2 addon2 setups that actually would have been profitable but weren’t done
    • (1) midline reject with mex flow but no fast momentum hook (2) double midline reject with only 3 bricks of room to resistance and without mex flow – again, the trades would have been profitable but this is not the chart read I want for momentum to do a 2nd trade addon
  • You will remember a reason for doing the previous Renko video was to discuss a difficult trading period but now consider how relatively easy trading for this period was – with the previous period still being profitable and a very good setup[s] to continue trading with, there was no reason to stop trading

Renko British Pound Day Trading Chart

Renko Day Trading Video519:

  • The Renko British pound chart shows a move up since the last trading video with the left-right prices on the chart showing clear resistance for the last swing before the session break, with the exception of the inside price as resistance1
    • Resistance1 is the price that we adjusted to changing from the compression triangle down trendline to the horizontal line-double top AND we have just seen this as a straddled inside price – however, the following price action keeps the price on the chart
    • (a) support test-reject price envelope reverse (b) midline reject-price failure break (c) price retest-midline reject shift from resistance to support and break out of the ‘price straddle’ area – this price is support going to the right
  • The primary reason for using this Renko chart period for this video was to discuss some trading decisions that although not ‘against’ the trading method were also either not ‘clear’ chart reads and/or had issues from trade filters
    • Renko midline-price reject sell is held for a price envelope reverse buy that is filtered and gains partial1 – but a price envelope reverse buy is then filtered for resistance
    • After ‘missing’ the filtered buy there is a midline reject-price reject [the reject shifts resistance to support] for a next trade but mex flow is questionable
      • (a) mex flow has stalled but the blue line is above the purple and both lines are below the extreme line (b) very good diagonal breakout potential above this area from the downswing – do the trade without momentum being extreme and with the breakout potential
    • Comparison of 2 midline rejects as trade addons or addbacks – doing the first one with ‘slow’ mex flow but never considering the 2nd one because mex has gone sideways and is approaching the max extreme
    • Renko buy + buy addon gain +4 bricks partial1 +4 bricks target exit and the trailing contract has gone +7 bricks, which is 1 brick from resistance and mex is sideways and extreme
      • Do you hold for 1 more brick of profit at resistance or do you take the +7 bricks of profit, not risking a momentum extreme-price brick miss test that will give 2-3 bricks of giveback?

Renko British Pound Day Trading Chart

Renko Day Trading Video518:

  • The previous Renko British pound trading video discussed extending a trendline that connects the bottom of a wedge pattern AND then the closing question – is the price envelope reverse buy a tradeable setup?
    • Using the bottom pattern line and its shift from support to resistance and extended to the right, would be a filter for the Renko price envelope reverse buy – and note again, like for the price extreme reverse buy, how the line shifts to resistance and rejects at the brick high and avoiding a 2nd losing trade
  • Resistance reject-price envelope reverse sell is filtered for support and then is followed by a midline reject with mex flow but no fast momentum hook – is this a tradeable Renko setup without the hook?
    • As a Renko trade setup only, the answer would be no because the hook is needed – however, this is a price trade setup and is tradeable as a price break2 with mex flow, as a support failure break trade entry
    • The support price fails and goes to lower lows where we find next support as a continuous chart price since the June contract has again made new lows – the sell is exited on a support reject-mex cross AND then long on a price envelope reverse buy
  • Renko price envelope reverse buy goes to resistance and is followed by a midline reject that is a filtered addon and then a 2nd midline reject that is also filtered but is traded – what is the difference?
    • Both Renko midline reject trade setups have mex flow-fast momentum hook but are at price – however, the 2nd midline reject is part of a W pattern that has a triple break component and is traded as a resistance price failure breakout
    • (a) price envelope reverse +4 brick partial1 (b) W breakout pattern addon +4 brick target exit (c) price envelope reverse contract 2 hits the +8 brick target – do you take the target exit?
      • You are trailing a 5 brick price extreme reverse and have hit resistance as a double top with the price that rejected from the bottom pattern line and led the price to lower lows – take the target exit

Day Trading Renko British Pound Chart

Renko Day Trading Video517:

  • Renko British pound trading has a clear price for support and an inside price but where is resistance – you will remember from the previous video that we had adjusted the horizontal resistance price for the down trendline from a compression triangle
    • Can we continue to use the trendline for resistance; no because as a trendline would extend to the right the price would become lower instead of being extreme – but there is a double top with the ‘midpoint’ of the triangle and that is the resistance price
  • Renko trade1 is a price extreme reverse sell but if trading had begun earlier, I would have been long a price envelope reverse buy – although when looking at the chart this looks like a filtered trade because it occurs at the inside price
    • Yes, the trade is filtered for the inside price as resistance but when pattern lines are drawn on the chart there is a wedge pattern, with the down trendline in the pattern cutting across horizontal resistance [horizontal-diagonal]
    • This would make the Renko buy trade a price failure breakout -vs- a filtered trade that was avoided
  • Discussion of the bottom trendline in the wedge pattern and extending it to the right and whether it continues to be a support price – look at the relevance of this line as the price continues to move down
    • The pattern line breaks and then rejects twice as resistance, continuing the downswing to lower price lows AND after a reverse back into buy, the line hits again at the brick high and rejects to new lows
    • Also, discussed is how this pattern line becomes used for Renko trade management and taking a target exit -vs- holding for price continuation and a bigger profit for the exit
    • If this pattern line is a support price then do you use it for resistance to filter a Renko price extreme reverse buy – do note that regardless of your answer, a price extreme reverse buy is reversed back into a sell on a midline reject swing resumption setup
  • The Renko trading video ends with a filtered price extreme reverse buy and then there is a price envelope reverse buy for the initial trade – is this setup tradeable or is there any filter to keep from taking the trade?

Day Trading Renko British Pound Chart

Renko Day Trading Video516:

  • Renko British pound trading price adjustment and identification (a) resistance = leftside price support adjusted for a double bottom and price action confirmed after breaking to lower lows and shifting to resistance (b) inside price = daily low (c) support = breakout to lower low double bottom
    • The price reversed from the support double bottom and note that this price is also the June contract low, so if there is another reverse back down to lower lows the next support price will have to come from the continuous chart
  • Renko trade1 is a midline reject buy after a price envelope reverse before began trading BUT this trade is filtered for the inside price as resistance
    • Thus first trade then becomes a price envelope reverse sell that gains a +4 brick partial1 but goes to a higher low test of support and reverses again
    • The Renko chart now has a lower high and a higher low, taking price into a compression triangle with no room to buy without a triangle breakout and ‘just enough’ room to take a Renko sell to the triangle uptrend line
  • Discussion of horizontal lines as support-resistance and diagonal lines as support-resistance – this Renko trading chart actually shows that the inside price as resistance loses its relevance and it’s the triangle downtrend line that is the relevant resistance price
    • The Renko sell is a downtrend line 3rd point resistance reject-price envelope reverse, which is followed by a ‘textbook’ triangle breakout for an addon – but this trade is filtered for support, so +4 brick partial1 but now addon
  • A price support break2 with mex flow failure break becomes a Renko addon trade and there is a good breakout – both through the June contract low and with room to the next support price on the continuous chart
    • After doing the addon trade, the initial trade hits its +8 brick target exit but with continuation risk-reward to support – however, it is fine to take this exit [2+1 trading and/or partial2 on a 3 contract initial Renko trade], because of the addon trade still an open trade
    • The addon hits its +4 brick target and is flat – with only 1 more brick to support and both mex lines at the maximum extreme, there is no consideration for price continuation

Day Trading Renko British Pound Chart

Renko Day Trading Video515:

  • Renko price envelope reverse sell + midline reject with mex flow-fast momentum hook trade addon and the swing also had an M pattern breakout for trade addon2, but this trade was filtered for support
    • The sell swing only went 3 bricks before there is a price envelope buy, what do you do with your shorts (a) the price envelope reverse buy is only 1 brick from resistance (b) there is only 1 brick against the sell[s] and 2 bricks at resistance – hold the trades
    • Renko sell swing resumption and the initial sell gains +4 bricks partial1 and the sell addon gains +4 bricks target exit – a very good example of using trade filtering for management and avoiding a loss-exit, instead of winning trades
  • The trailing Renko short gets a +8 target exit, trailing for a price extreme reverse – again note the purple line on the chart that is support from the continuous chart and rejects it at the brick low
    • Price extreme reverse sell followed by a price envelope reverse and a midline reject with mex flow but they are both filtered for resistance and can’t be traded as Renko addon trades followed by a 2nd midline reject with mex flow that is also filtered for resistance BUT it is traded – why?
    • The 2nd midline reject is a W breakout pattern and is traded as a price failure breakout trade setup [with the triple break component] -vs- a filtered trade
  • The Renko W pattern buy breakout goes back through the previous swing diagonal and goes to resistance before there is a price extreme reverse – the effect of resistance failing to remain resistance and a price move into diagonal breakout potential
    • Renko trade management (a) price extreme reverse +4 bricks partial1 (b) W breakout addon +4 bricks target exit (c) price extreme reverse trailing contract +10 bricks exit – based on the momentum chart read and risk-reward for continuation through the swing diagonal and a move to resistance -vs- the +8 target exit

Day Trading Renko British Pound Chart

Renko Day Trading Video514:

  • Renko British pound chart looking at prices and filters and whether they need to be adjusted, which would include the adjustment of any horizontal trading prices along with diagonal lines [trendlines] that also are used for support or resistance
    • The Renko trading prices remain the same and any prices that came from the continuous chart are now June British pound prices
    • A look at previous Renko trading showed a double midline-price reject pattern that had a lower high and was traded as a triple break – but looking at the ‘pattern line’ at the lower highs, we can see that this is actually part of a trendline that has started at the chart high
  • There is a support reject-price envelope reverse Renko buy that would be immediately stopped out BUT this is a filtered trade because it is directly into the downtrend line as resistance
    • Additionally, there is a price envelope reverse sell filtered for support and a midline reject that is filtered for support and momentum – these Renko trade filters have avoided loses for 3 trades
    • Another support reject-price envelope reverse buy is also filtered and would have been a winning trade – but it was followed by a midline reject-trendline break2 with mex flow-fast momentum hook that became a +4+8 2 contract trade
  • Jumping forward to the next trading day we see a large British pound reverse back down that has gone below the June contract lows and trading prices again come from the continuous chart
    • Renko price extreme reverse buy that is held for a non-tradeable swing resumption that is into a price momentum divergence – hold the buy and then do a PMD extreme low addon, which is entered above the Renko midline because price support would not backstop the trade
    • Renko partial profit1 at 4 bricks + 4 brick addon target exit – adjust the left-right price down 1 brick to the double top and go short the price envelope reverse sell
      • Trade management discussion for the Renko sell, after hitting a double bottom at support and giving a price envelope reverse buy (a) Renko price envelope reverse buy filtered for resistance (b) the price retrace only gives 2 bricks of loss against the trade (c) a lower high test of resistance is only 3 bricks of loss against the trade
      • Hold the short inside of the double top-double bottom range until stopped out or there is a breakout-resumption with direction through support and profits can be taken

Day Trading Renko British Pound Chart

Renko Day Trading Video513:

  • Renko British pound trading ended with a new price low for the June contract and after the session break broke out to lower lows – the price breakout was actually a brick-miss test of a left-right price from the continuous contract, which then broke 1 brick lower and became a double bottom
    • This price action (a) again showed the across the chart relevance of the continuous contract (b) gave a new support point that filtered-avoided a losing trade (c) allowed a price adjustment from the continuous chart to the June chart when the double bottom held
  • Renko British pound trades (1) price envelope reverse buy + midline reject with mex flow-fast momentum hook – exit on a price envelope reverse sell = -1 brick on the initial trade and -3 brick on the addon trade
    • The price envelope reverse sell was filtered as a trade 2 Renko bricks from support and held as a double bottom (2) double bottom-price envelope reverse buy resumption – the trade gained 4 bricks and was 1 brick away from resistance, what do you do with the open trailing contract?
    • Discussion of 2+1 trade management and the issue with managing the last trade contract, especially when there was no addon done – and a further issue of taking 1 additional Renko brick of profit and going flat
      • Yes, 1 brick from resistance but (a) there was very good mex flow with no extreme (b) we were not trailing a price extreme reverse yet but would if resistance hit
      • With the momentum read and having to go flat this would be a time to hold the open contract for a potential price breakout, accepting the 2 bricks of giveback if there was a price extreme reverse – the resistance price did break and a +8 brick target exit was done
  • Renko price momentum divergence high but no PMD extreme trade because filtered for price and then short the price envelope reverse, but it was immediately followed by a price envelope reverse buy
    • Hold the short (a) the price envelope reverse buy was without mex crossing (b) there was only 3 bricks against the trade
    • The sell was not stopped out and there was another price envelope reverse sell, with mex flow and a fast momentum hook [not needed for the swing resumption trade but added to it] – do an addon sell to the held initial Renko short
    • Discussion of an addon2 pattern = price-midline reject with mex flow-fast momentum hook, where the counter brick was a lower high to the previous counter brick – this is a favorite addon pattern with the triple break component and especially in this case, where the setup included a price reject component and diagonal breakout potential from the previous swing

Day Trading Renko British Pound Chart

Renko Day Trading Video512:

  • Renko British pound trading prices and comparing-adjusting left side price from the continuous chart with price action in the same area on the June contract
    • We have seen multiple examples of the relevancy of the continuous chart prices as the June contract made new lows but when we get new price action on the June contract I want to make a price adjustment[s]
      • (a) left-right support breaks and retests as resistance with 4 brick breaks of the line – adjust the price to the brick break high (b) next support breaks to lower lows – add this price low to the chart as support after a price envelope reverse (c) previous support [now resistance] breaks-rejects a brick higher – adjust resistance to this brick break high, which is also a double top and the lower high before the chart lower low
  • Renko trade1 = price extreme reverse sell after a test-reject of the resistance price – go short, but when there is a price envelope reverse no trade addon can be done because it is filtered for support
    • There is a trade management decision that must be done on a price envelope reverse buy, where I held the trade (a) mex had not crossed and a long trade would also be filtered for resistance (b) there was only 1 brick against the trade and a double top would only have 3 bricks against the trade
    • The sell swing made a lower high and then resumed and included a midline reject-price failure break with mex flow and a trade addon was done to the initial [held] short
  • Trade management discussion after partial1 on the initial Renko trade and the target exit of the addon trade – what do you do when the initial trade trailing contract hits its +8 target exit?
    • When the Renko target exit is hit there is (a) mex flow with only the blue line extreme (b) only 3 consecutive red bricks -vs- trailing a price extreme reverse (c) 3 more bricks of room to the support price – hold the trailing contract for continuation
    • The short goes 2 more bricks and the risk-reward changes as (a) there is a mex extreme (b) there is a trail of a price extreme reverse (c) there is only 1 more brick of room to support – now go flat with a 10 brick exit -vs- the 8 brick target exit

Day Trading Renko British Pound Chart

Renko Day Trading Video511:

  • Renko trading prices and the low for the June contract -vs- left side prices as seen on a continuous British pound chart – yes, we have made lower lows for June and in that context don’t have a support price BUT the continuous chart shows lower prices from January
    • When I said we had hit the lowest prices for 2019 that was correct because we had rolled from the March contract to the June contract and it had not been this low before – but the continuous contract shows lower trading prices and as we will see when they are tested, these are relevant Renko chart prices
  • Renko trade1 can’t be done as a price envelope reverse sell because mex had not ‘crossed-back’ yet and a midline reject did not have mex flow – the first trade was a 2nd midline reject, even though it was without a fast momentum hook
    • When you are looking at the ‘double’ midline reject you are looking at an M pattern, which is a breakout pattern since it includes a triple break AND since the first reject synched with the mex cross the 2nd reject had mex flow
    • Renko M pattern breakout sell + midline reject with mex flow-fast momentum hook addon AND a look at the relevancy of price support taken from the continuous chart – the price was a brick break test-reject and a price extreme reverse
  • Discussion of a price + pattern trade setup that was traded but did not have all of the components of a ‘base’ Renko trade setup – midline reject without a fast momentum hook
    • The Renko price envelope swing is in ‘sell mode’ and long from a price extreme reverse buy – a price swing resumption sell cannot be traded because it would be against mex flow
    • Price breaks support and then rejects as resistance and mex crosses into sell but no mex flow and still no trade is done, which is followed by a 2nd midline reject where the counter brick is also a lower high and has mex flow – sell this midline reject with mex flow [without a fast momentum hook] as a shift-reject pattern of price support shifting to price resistance
    • Also, note where price continues to before reversing – the next support price that we would have from the continuous chart

Day Trading Renko British Pound Chart

Renko Day Trading Video510:

  • Renko British pound trading trendlines, comparing the concept of price action identifying a horizontal line with price action identifying a diagonal or horizontal line
    • Compare simply connecting any 2 points, regardless of slope or location and calling it a trendline with the following 2 points (a) support price start point (b) retrace in an upswing that stops with a price envelope reverse back into a buy (c) break of resistance and a shift to support and going to a swing higher high – connecting these 3 points and the price action described gives a good trendline
  • Renko trading prices and adjustment (a) support = previous day low and the lowest price for 2019 (b) resistance = a price action price where the price was the initial low price that broke to lower lows and shifted to resistance but after it became resistance it broke again and shifted back to support – however, this price broke one more time, making it resistance for when began trading
    • The Renko price adjustment came to support that broke to lower lows after the session break and was a double bottom before a price envelope reverse buy – this new price, again the lowest price in 2019, became the new support price
  • Renko trading sell swing with trade holds against a price envelope reverse buy and management for an initial trade + addon trade + addback trade – considering 2+1 trading
    • Renko price envelope reverse sell reverses into a price envelope reverse buy BUT mex did not cross back and there were only 3 bricks against the trade – hold the sell for the 4 brick stop
    • The Renko sell resumes buy holds the support price that is only 3 bricks away so no partial BUT at the support price there is a double midline reject [4 brick then 3 brick] giving a triple break setup – sell this pattern as a trade addon and as price failure breakout
    • The initial trade gains partial1 on a breakout and then there is a price-midline reject with mex flow-fast momentum hook that is traded as an addback to the initial trade, also with only needing to break 1 brick to exit the addon trade with a 4 brick target
    • Price moves to an 8 brick target for the initial trade, which can be taken without going flat because the addback trade would still be open – take this profit
    • AND then the issue that must be decided regardless of trading size – what do you do when your last Renko contract hits its profit target and you must decide between going flat or holding for more continuation
      • Doing a chart read we can see a mex extreme after the swing has gone down 10 bricks from when it was opened [not consecutive red bricks] and we are trailing a price extreme reverse
      • You can exit your addback with a 4 brick target or try to hold for continuation -vs- the giveback of 2 bricks if there is a price extreme reverse buy – if you can’t ‘read’ at least 3 more bricks of continuation [risk-reward consideration] -vs- the giveback, the trade should be taken flat

Day Trading Renko British Pound Chart

Renko Day Trading Video509:

  • Renko British pound trading discussion and trendline review, beginning with a Renko double top-price extreme reverse sell after a price envelope reverse was filtered by a down trendline as resistance
    • Short the price extreme reverse but a price envelope reverse sell trade addon could not be done because it was filtered by an up trendline – the addon was then done as a trendline break2 with mex flow-midline reject with a fast momentum hook as a support failure break
    • Further Renko trendline discussion about scenarios with the trendline in different locations and whether they were filters or setup as a failure break-failure breakout
      • Especially discussing trendline triple breaks-breakouts similar to reading horizontal lines – for instance, the break of a double top across a chart is a test of resistance -vs- a failure setup
      • Like the horizontal line failure breakout [the break -vs- a break2] having a triple break setup at the breakout point – we want 2 points on the trendline that doesn’t count the trendline start point
      • Renko scenario that shows a failure breakout at a trendline after the trendline has the start point + the 2nd point that establishes the trendline + another test of the trendline
  • Discussion of resetting trendlines after breaking by a couple of bricks
    • There are times to adjust the trendline across the chart after a break and then another hit of what would be the adjusted trendline -vs- the trendline being relevant until it breaks and then there is no trendline any longer
    • Using trendlines to ‘contain’ price inside a resistance or support price and what is essentially diagonal consolidation
  • An adjusted trendline across the chart has the original start point + 2 new price points and intersects with support – giving a horizontal-diagonal price failure setup
    • Renko support price break2 with mex flow + fast momentum hook AND up trendline break2 as well, giving additional breakout potential and continuation for the trade setup
    • Price ‘clears’ through the previous area ‘contained’ by the trading price and the trendline going 10 bricks [including another midline reject for a trade addon] – and a move that goes all the way to a test of the original support price

Day Trading Renko British Pound Chart

Renko Day Trading Video508:

  • Renko British pound trading starting with the previous day’s trading prices and the problem with how tight the trading ranges were because of having the 2 extreme prices and 2 inside prices – were both of these inside prices still relevant?
    • (a) ‘upper’ inside price – price action at this price included a break as resistance-reject as support but then broke again and after the session break there was trading back to this price as resistance AND it rejected as the high price – continue to use this trading price (b) ‘lower’ inside price – there really wasn’t price action related to this price, especially after the session break – and the price was removed from the chart
  • After the ‘upper’ inside price reject as resistance there was a price envelope reverse sell + midline reject addon sell, but these occurred before I began trading
    • My first Renko trade was price continuation and a reject of support [giving further confirmation of price relevance] and a price extreme reverse buy
  • Renko price extreme reverse buy + price envelope reverse addon = +4+4+8 – should the target exit for the 2nd contract be taken or should the trade be held for continuation to resistance
    • Discussion of risk-reward between gaining 2 more bricks at resistance -vs- currently trailing a price extreme reverse that would give 2 bricks of giveback if it occurred on the next brick
    • AND there was a down trendline that was being hit with the target exit – there really weren’t odds of continuation [even if +2-2 risk -reward was accepted] and the target exit was taken
  • The price moved into a compression triangle = higher lows-lower highs and then into consolidation AND I stopped Renko trading – there was a price reject-price extreme reverse sell + up trendline fakeout-breakout addon before trading was stopped = +4+1-3
    • Discussion of when I would start trading again [this was 12:04ct and I wasn’t trading, in general, any longer] – the Renko trade setup was a support price break2 with mex flow, followed by a midline reject with mex flow-fast momentum hook Renko addon

Day Trading Renko British Pound Chart

Renko Day Trading Video507:

  • Renko British pound price momentum divergence buy + price failure break buy trade addon, with partial1 and 4 brick continuation to resistance – take the 2+1 trading exit on the addon and also take a +8 brick target exit for the initial Renko trade trailing contract
    • Do note that there is no chart read for taking a +3 brick exit [not trailing a price extreme reverse] BUT when the move goes to price resistance with a mex extreme and the 2 lines overlapping, there is no consideration of holding for further continuation
  • Additionally, there is a price momentum divergence high at price resistance giving a price momentum divergence high sell – again located at the midline as a function of having the price ‘backstop’ the trade
    • This price ‘backstop-tool’ was beneficial because not entering this trade until the brick closed below the midline would have been a filtered trade and then a Renko price envelope reverse sell would have also been filtered – missing a 7 brick price move through the previous diagonal
      • Management discussion and what do you do with the trailing contract after partial1 and a 3 brick additional move (a) trailing a price extreme reverse (b) having only 1 more brick until you hit price support – making for 1 brick of reward -vs- 2 bricks of giveback if the price extreme reverse
    • Further discussion regarding the 2 inside prices and the tightness of the range – knowing that the ‘upper’ inside price is relevant and at the time of this Renko trading swing, so is the ‘lower’ inside price
  • Renko price envelope reverse sell gains partial1 and price is below support but then there is a price-midline reject with a higher high in momentum, thus showing the development of a price momentum divergence low
    • I do not want to start taking +4+1 brick trades -vs- sometimes taking a +4+3 brick trade – yes, I had additional giveback when the swing reversed but I just don’t want to get in the mindset of any profit on a 2nd [or more] contract is fine
  • Renko price envelope reverse buy [there was no PMD low trade] that gains +4 and goes +3 more bricks AND another discussion-chart read for taking a 3 brick exit -vs- holding for additional profit
    • The primary considerations (a) trailing a price extreme reverse after 7 consecutive green bricks (b) the 4 brick target is only 1 brick higher and is at price resistance

Day Trading Renko British Pound Chart

Renko Day Trading Video506:

  • Renko chart British pound trading starting with the same trading prices from the previous day – but do need to change for full bricks (a) outside resistance – adjust up to brick high (b) outside support – also adjust up to brick high, because the brick low is actually a lower price than the previous day
    • Discussion of price-brick adjustment and whether this adjustment up-down to a full brick high-low actually affects trading
    • Discussion of the chart situation that gave 2 inside prices and the potential for ‘tightening’ trading to a point where the chart wouldn’t be tradeable, along with watching both of these prices for price action and continued relevance and possibly removing them from the chart
  • Renko trade1 = ‘upper’ inside price break2 with mex flow-fast momentum hook as a midline reject and price failure break that has partial room to the ‘lower’ insider price – this trade is not filtered but a 2nd midline reject is price filtered, so there is no trade addon
    • The Renko short trade gets partial1 and then continues 3 more bricks, trailing a price extreme reverse that would be filtered as a trade – is this a time to take a 3 brick exit -vs- holding for the 4 brick target?
    • The reason[s] this is questioned (a) the price extreme reverse would be a giveback of 2 bricks (b) the price extreme reverse is filtered (c) you are only 2 bricks from the next support price which give poor risk-reward for holding the trade (d) the move to support will be as a price momentum divergence – this would be a ‘chart read’ reason for the 1 brick smaller profit
  • Renko trade2 = price momentum divergence low-price support reject that is entered into the midline – but this has a trading price as a ‘backstop’ to hold the trade
    • The price moves back to the ‘lower’ inside price and breaks by 1 brick [giving partial1] and is followed by a break2 with mex flow-fast momentum hook, giving a price failure break addon – again using the maximum available trading room, which does show the price action that continues the relevance of these inside prices
    • Management discussion when price continues to the ‘upper’ outside price, which hits as a price momentum divergence high and a 2+1 trading 4 brick addon exit with a target exit of the 2nd contract from the initial trade

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video505:

  • Renko British pound trading and an extended discussion of both left-right price identification and a resulting issue – what if 2 traders have used a different price by even 1 brick and whether-how much that difference could affect Renko trading
    • In this case, the issue would be (a) left side double bottom that later had another double reject and then continue price action relevance both as support and resistance – a very relevant price (b) a test of this left-right price on the previous day before trading that breaks the price by 1 brick multiple times
    • What is the relevant trading price to use, the left-right price OR the new low – and how much difference in trading did that 1 brick actually cause?
  • Renko price envelope reverse buy-price envelope reverse sell combination – the buy would be done by both traders but the Renko sell, which was also a winning trade, would be price filtered if the lower price was used
    • Discussion of a price breakout pattern = double midline reject with the brick lows being on the trading price, thus giving a triple break setup of the price
    • In the situation being discussed, if the left-right price was being used this would be a price failure break [break2 with mex flow] addon to the initial trade – but if the new price was being used, this would be a price failure breakout and the initial trade
    • One more Renko midline reject occurred and if the new price was being used, this would then be a trade addon – so regardless of price used, each trader would have an initial trade + trade addon
      • Yes, a brick can cause a difference in Renko trading but it would tend to balance itself out (a) sometimes a missed trade would be avoiding a losing trade instead of missing a winning trade (b) sometimes a trade would be held for bigger gains instead of a trade exit (c) AND like we just saw, many times it just wouldn’t matter
  • Discussion of a price extreme reverse buy transition into price consolidation and (a) holding the buy inside of consolidation (b) filtering for trade reverses inside of consolidation and the numerous losing trades that were avoided
    • Missing the consolidation breakout as a trade [the buy was closed for a 3 brick loss] and when trading could be done again, which was a support reject-price extreme reverse buy
  • Another Renko price situation and using the previous low [the double low before consolidation] now as resistance and where-when an addon could be done after the price extreme reverse buy
    • There is another double midline reject Renko price pattern that is at the price that would give a price failure breakout trade addon setup

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video504:

  • The previous Renko British pound trading video ended with the question – if the last trade discussed, a price envelope reverse buy was actually a trade addon, then what was the initial trade?
    • Looking back to the left, we can see a price momentum divergence low-support price reject and this Renko PMD buy was the initial trade
    • Note that this was a time where I was ok with going long into the midline because of having the support price backstop the trade AND we needed that backstop, considering the midline did reject and retest support before continuing
  • Renko trading has been inside of a well-defined range made by the support price and the inside price as resistance – support had hit-held twice and resistance rejected as a left-right double top BUT there was also another price that was being watched for relevancy
    • The trading range was actually sufficiently wide to have its own inside price, but before adding this to this price to the chart [in this case or any case] be sure (a) that there is continued price action at this price -vs- a single reject that could also be the midline rejecting (b) that you are not adding a price inside of a range that will take away trading room
  • Discussion of the ‘new inside price’ becoming relevant, along with how it affected ongoing trading and what becomes compression inside of resistance and support
    • The discussion includes filtering for a price envelope reverse at the price [a short reverse when currently long] BUT then becomes an exit to the Renko long when the price breaks – trying to take a 3 brick exit -vs- a 4 brick stop but becoming ‘whipsawed’ and missing a winning trade
  • After missing the winning trade, there is no resumption buy to re-enter, the next Renko trade is a resistance reject-price envelope reverse sell – again showing the price relevancy of a left-right outside price

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video503:

  • Renko British pound chart trading prices (a) resistance = previous day high that was further significant because it had been a double top high at the same price – do note how this outside extreme price remained relevant across the chart by rejecting as the brick high (b) support = swing low after the resistance price reject that was a double bottom low with the low price after the session break
    • (c) inside price and resistance1 when started trading = initial high from the previous day that broke and shifted to support, which later broke on the move from resistance to support – making it the inside price to the outside range and again resistance when the price was below it
  • Renko trade1 was called a price extreme reverse ‘replacement’ trade – consider the following (a) right before I began trading there was a price extreme reverse sell at the inside price (b) this was followed by a midline reject back to that price, where the swing resumption was filtered for momentum and the price
    • (c) I sold the price reject-counter brick, with a mex extreme cross and fast momentum lead – considering this setup to actually show more signs of reversing than the original Renko price extreme reverse
  • Renko price extreme reverse [replacement] short + price envelope reverse addon that was then followed by a midline reject with mex flow-fast hook addon – would this be a good trade setup to use for a 2nd Renko trade addon?
    • Discussion of 2nd addon trades and especially liking a ‘double’ midline reject-W or M pattern because of that trade setup having a triple break component – but when the location of mex flow right above the middle of the range and having previous swing diagonal breakout potential that was still 9 bricks away from support, I liked this setup as Renko addon2
    • Discussion of trade management for the sell swing and taking a target exit for the last trailing contract -vs- holding the trade since the price was still above support – based on the risk-reward for price continuation and a bigger profit
  • This Renko trading video ended with the entry of a price envelope reverse buy AND then mentioning that this was actually a trade addon – and then asking the question about if this was a trade addon, then where was the initial trade?

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video502:

  • Renko oil price envelope reverse buy + midline reject with mex flow-fast momentum hook addon; the initial trade partials but the addon only goes 3 bricks – it holds at price resistance on a test and then a 2nd time after a midline reject with divergent fast momentum
    • In this case, and the rejecting of resistance, take a 3 brick profit [exit] on the addon after the 2nd reject – noting that if the price does breakout, you will still be long from the trailing contract from the initial trade
  • Comparison of 2 Renko midline rejects at the resistance price (1) the reject we just discussed where the 3 brick profit was taken (2) a test of the resistance price but with a fast momentum hook and very good mex flow
    • The 2nd example also occurred as a triple top breakout of resistance – buy the triple top-momentum and price breakout as an addon AND as a price failure breakout of the resistance
  • Renko price momentum divergence high with the counter brick on the midline as potential support – another discussion of whether a PMD entry is into support or resistance if it is into the midline
    • As we keep discussing [studying] this situation, I have continued to mention that the time[s] I feel more comfortable entering into the midline is when there is a support-resistance price to ‘backstop’ the trade – this was not the case this time and I did not do the PMD trade
  • Discussion of Renko oil trading and the EIA report, avoiding entry into the report and staying flat until ‘the news gets into the market’ – a chart read only appears to show that multiple winning trades were missed, but these were part of the news and we can also see how wide of a chart range occurred in 2 seconds
    • When I took my first trade after the news an extra 2 minutes had occurred and there was a very ‘clean’ Renko and price trade setup
    • (a) double low with divergent momentum (b) price envelope reverse that also had a midline reject with mex flow (c) price break2 = price failure break (d) with diagonal breakout potential for 8 bricks to the resistance price through the previous swing diagonal

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video501:

  • Renko oil trading beginning with a review of diagonal filtering [when a trendline is price support or resistance -vs- a horizontal price line] and the very big difference in profit-loss, if this was not done
    • Renko price envelope sell + midline reject addon sell both go 4 bricks and are profitable trades – because of holding and/or avoiding price envelope reverses that are filtered
    • Without diagonal filtering, the 2 profitable sells are instead 3 contracts X -2 bricks [+ the loss of profits] AND then there is another price envelope reverse buy at the diagonal trendline that is avoided – that would be another 2 contracts X -4 bricks of loss
  • Price extreme reverse buy + price momentum divergence buy addon both are followed by multiple price envelope reverse sells BUT all of these are filtered for momentum and price and the trades are held without being stopped out
    • Again, look at the big difference in profit-loss if filtering isn’t used, both for management and avoiding trade entries – instead of having 2 winning trades, there is a potential of 4 losing trades
  • Renko price momentum divergence trading discussion and whether the midline is support-resistance to the trade entry, important because it could be the difference in 1-2 bricks of entry price -vs- entering a trade into the midline and having it rejected
    • I am still considering this and the related tradeoffs for the earlier entry -vs- a rejected trade – what I do want at this time if entered into the midline is a support-resistance price right below the divergence high-low to ‘backstop’ the trade
    • Renko price momentum divergence sell at the midline BUT there is a horizontal price line 2 bricks higher – and the extension of the down trendline as resistance is one brick higher, giving ‘double resistance’ as a ‘backstop’
  • Discussion of extending the down trendline across the chart and how it affected trade entry – I was filtered for a Renko price envelope buy + midline reject addon and then entered on the trendline breakout

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video500:

  • Renko oil trading beginning with relevant support and resistance AND the identification of an inside price from price action after the session break (a) support = swing double bottom before the previous close that does break lower but then breaks as resistance and shifts back to support (b) resistance = high after the session break, significant because it is a higher price than the previous day’s high
    • (c) inside price = initial high after the session break that later has a failure break that goes to the actual high – later we see a retest of the price as support and a PMD low that continues to hold
  • Renko oil trade1 = PMD low-support reject price envelope reverse buy + Renko midline reject with mex flow-fast momentum hook addon trade, where the initial trade gains 4 bricks partial1 but the addon only goes 3 bricks
    • Management discussion for reducing trade size on the reject of a double top [outside extreme] price high – noting that if there is a breakout of the highs that the trade will still be an open long
  • The double top holds and is followed by a Renko price envelope reverse sell + a midline reject sell that could be an addon BUT no trade is done – why not?
    • Drawing an up trendline from support, we see that the first 2 potential Renko trades would be filtered for diagonal support – no trade is taken until there is a 2nd midline reject-M breakout pattern that is traded as a failure break of the trendline
    • The initial reaction is still a reject but the trade is not stopped out [only retracing 3 bricks] and then an addon is done on a swing resumption and break2 of the trendline
    • Before becoming profitable there is a price envelope reverse buy but this is filtered for resistance AND there is also a down trendline that provides diagonal resistance and the trade is held
      • NOTE the importance of these price resistance holds, especially the trendline right at the price envelope reverse brick (a) a 2 brick loss on the open trades (b) a full stop loss on the buy reverse (c) missing out on the profits from the 2 buys (d) and a full stop loss from a 2nd buy reverse that is filtered by the extension of the trendline
      • This is a big profit difference for management and trade avoidance using resistance-support filtering AND remembering the significance of diagonal lines

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video499:

  • Renko oil trading continuing from the previous video, short a price extreme reverse – also noting that by taking a partial at resistance and not having a continued break above the price that filtered the reverse, 1 extra brick was gained on the trade
    • British Pound 6.25 x 3 ticks per brick = 18.75 per brick – Crude Oil 10 x 3 ticks per brick = 30.00 per brick
    • Continuing to save extra brick[s] of giveback turns into a lot of money across the larger number of trades – but that being said, we don’t want to take ‘arbitrary’ partial profits and extras and give-up extra profits that are even greater amounts of money
  • Renko price extreme reverse sell is immediately followed by a green brick – is this a price swing resumption buy?
    • When answering this question we need to determine whether the trade is filtered for price or for momentum – there is no price filter [actually there is a price break2] but momentum is above the extreme line and although there is space between both mex lines, the 2 lines are beginning to flatten out
    • I took this trade, with the mex condition -vs- reading a trade into a price momentum divergence because (a) the spacing between the mex lines without both being at a max extreme and converging (b) the location of the trade being a failure break entry of the inside price – that also would have ‘backstopped’ the trade if a PMD did occur
      • I would not have taken this trade if it had occurred at an outside extreme
  • Renko price extreme reverse sell [this is a different trade than just discussed] also have a price swing resumption – but no trade because it is filtered by price and the sell is stopped out
    • This trade is followed by a Renko price envelope reverse sell + midline reject with mex flow-fast momentum hook addon and after both trade1 gains 4 bricks there is a price envelope reverse buy – there is no trade because it is filtered for resistance BUT I also held on to the trailing longs
    • After drawing a down trendline from the high and then lower high, we can see that the price envelope reverse brick completes right at this trendline as resistance and this is the hold of the trade – also note how extending this line continues to avoid losing trades from swing reverses
      • The result of using diagonal resistance [2+1 trading] = +4 +4 +8 target exit at support -vs- +4 +0 -1

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video498:

  • Renko oil chart begins trading at the inside price [resistance1] and is a midline reject-price break2 BUT is it an actual trade setup?
    • No, the trade comes after a mex cross and against a ‘lagging’ fast momentum hook – a chart read shows that this would be a Renko trade into a PMD high
    • NOTE that we do not actually get a PMD high because although there is a lower high in momentum – there is only a double high in price and not a higher high
      • IF there was a PMD high a momentum extreme sell could be done on a break back below price – the trade would have to be located there to keep from being filtered unless it occurred 3+ bricks above the inside price as support
  • The Renko sell becomes a price envelope reverse under price and is followed by a price-midline reject with mex flow-fast momentum hook addon sell AND after a partial profit + addon exit, continues 2 more bricks and a brick test of support – do you take a 6 brick exit?
    • Discussion of risk-reward management, meaning how much profit do you have to give up for additional bricks of gain – along with a momentum chart read and whether an exit would be ‘arbitrary’
    • Also, note that this support price was the initial low from the previous day but not the daily low 3 bricks lower – I would consider that to be a support area but with the price action [break as resistance and shift back to support] I kept the price on the chart
      • The price goes 1 brick from support and reverses and then later breaks the price by 1 brick and reverses – giving price action confirmation
  • Support reject-Renko price envelope reverse buy + midline reject with mex flow-fast momentum hook addon AND again after a 4 brick initial trade partial profit + 4 brick addon exit, the price goes to resistance where a price extreme reverse is being trailed – and again a decision about taking an exit -vs- the profit give back that would occur if the next brick was red
    • Discussion about this same situation but with 2+2 trading instead of 2+1 trading AND how a profit at resistance would be a partial profit -vs- a trade exit

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video497:

  • Renko British pound, again trading from the previous video[s], with a starting question – is there anything that we can see on the chart that would show us that we shouldn’t continue trading, especially a compressed trading range with momentum staying in the middle of its range?
    • Trading to this point has been with mex that has gone from extreme to extreme and although we are currently inside a range between resistance and the centerline as support, there is enough room in each direction for a Renko price envelope reverse to go 4+ bricks
  • All Renko trades this morning have been profitable until a price support reject-price envelope reverse buy + midline reject addon is followed by a price envelope reverse sell
    • There was diagonal breakout potential for these 2 buys but we went to a lower high and there was no price continuation – the price envelope reverse sell has partial profit room back to support BUT here is where we would look for a lower high to follow the higher low and range compression and loss of momentum
    • But the trade does go to support and is followed by a breakout to a +8 target exit, giving a -2-2 losing trade followed by a +4+8 winning trade and Renko trading is continued
  • Renko price envelope reverse buy + midline reject addon is followed by a price envelope reverse sell before a partial profit AND the sell also is a losing trade – both trades had partial profit room to support or resistance but there was no price continuation
    • I actually had 4 losing trades in a row and was going to stop trading as we compressed inside the centerline as resistance and a higher low double bottom above support
    • I did try 1 more trade first – the Renko setup being a resistance-reject price envelope reverse that included a triple bottom breakout of the higher low double bottom, which also included a midline reject-triple bottom breakout addon
  • These 2 last Renko trades did breakout to and through support giving maximum 2+1 profits – I do contend that although there were multiple consecutive losing trades, the chart still showed momentum and profitable trade setups to continue trading
    • Discussion of taking the +8 target exit -vs- trailing for a bigger profit after 7 consecutive red bricks and the increasing odds for a counter brick that although the price extreme reverse would be a filtered trade – holding for a break of resistance and a full brick close above the midline would be 3-4 bricks of giveback
    • Price did continue down after the exit to a non-filtered price extreme reverse buy – note that holding an 11 consecutive red brick move and holding for the price extreme reverse, only gave 1 more brick of profit than a +8 target exit

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video496:

  • Renko British pound trading, continuing from the previous video – price extreme reverse long + price envelope reverse addon + midline reject with mex flow+fast momentum hook addback
    • There were a +4+4+4 brick gain [2+1] trading and a trailing of the 2nd contract from the initial trade that does hit the +8 brick profit target – reviewing the discussion for managing this last contract for additional profits -vs- the taking the target exit and going flat
    • +4+4+4+8 would be a +20 brick ‘maximum’ gain for a 2+1 trader that includes additional profits from the addback, supporting the giveback for trying to increase the trailing contract gain – a chart read shows mex flow without the trail of a price extreme reverse and another 2 bricks of profit was gained
      • Further discussion on the difference in profits on this trade, even for a 2+2 trader [let alone the 3+ contract trader] and the further benefits of bigger size for the bigger moves
  • Price momentum divergence high, not following a price extreme reverse but certainly coming after multiple bricks where mex was at its max extreme for both the blue-purple line – and further comparing this potential Renko PMD trade with other trades that we have recently traded
    • Sell the Renko price momentum divergence on the counter brick, also noting the location of resistance if there is a retrace and how this would only be 3 bricks against the trade
  • Renko price momentum divergence sell + price envelope reverse sell [which was a difference with the other PMD trades that had a price extreme reverse trade] + midline reject with mex flow-fast momentum hook addback
    • Management of these trades that don’t include ‘max profits’ as support holds, but all trades gain a profit or a breakeven exit
  • Renko price envelope reverse buy + midline reject addon – neither trade profits but the total loss is only 4 brick and followed by a price envelope reverse sell that goes to the +8 brick target
    • Management discussion for 2+1 trading with no addon at the +8 target AND the risk-reward for taking the target exit -vs- holding the trailing contract for a bigger gain

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video495:

  • Renko British pound trading prices identified from the left side and moved to the right – especially note how outside extreme prices shift to an inside price as the trading ranges widen both to the upside or downside AND the price action that keeps these prices relevant across the chart for multiple days
    • For instance, when trading begins, a left side double bottom support price has become an inside price [resistance1] for the current trading range AND a double top breaks and shifts back to support, before going to resistance1 and rejecting – giving us our beginning support and resistance prices
  • Trade1 = price envelope reverse sell after 2 lower high rejects of resistance that is also a triple break – it was this triple break component, with partial width to support that had me try this trade -vs- viewing it as a possible consolidation low breakout
    • The trade gets partial1 at support and breaks 1 more brick AND goes back above support, which is now a Renko price extreme reverse buy that also exits the trade – there is no other management decision to use besides this reverse
  • Renko price extreme reverse buy + price envelope reverse addon, which is then followed by a midline reject with mex flow-fast momentum hook – is this a setup to use for addon2, noting that no partial profit has been gained yet so this would not be an addback trade?
    • Discussion of taking this trade as addon2, anticipating that if nothing else it will break at least 1 brick and give the initial trade its 4 brick partial profit – thus allowing a 2+1 trader to again have 3 contracts to trade through a previous swing diagonal that has 4 bricks of room
    • As a 3+ brick trader or a 2+2 trader, I like the double-midline reject that has a triple break as part of the setup for doing an additional Renko addon trade
  • Regardless of taking the ‘anticipation addback’, the buy swing does have another Renko midline reject trade setup after a 4 brick partial profit that would be an actual addback setup
    • Management discussion after the 3 trades have +4+4+4 and the 2nd contract for the initial trade is being trailed – discussing holding a +8 target exit at resistance, with a chart read that shows (a) mex flow (b) a previous resistance brick break by 2 bricks (c) hitting resistance but not trailing a price extreme reverse
    • Without having a momentum or price extreme it would be fine to continue to trail – then at +10 bricks and the high since the session break take the target exit

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video494:

  • Renko British pound trading continuing from the previous video, long the price extreme reverse buy + long the price envelope reverse as an addon – remember that with the price extreme reverse starting from a reject of the support price that was used for an 8 brick target exit, the actual trade was not a reverse but a new trade when flat
    • The initial trade gained its 4 brick partial1 and the price envelope reverse is followed by a midline reject with mex flow-fast momentum hook and is used as an addback for 2+1 trading that brings the trading size back to 3 contracts
    • I didn’t discuss this but also consider whether the midline reject was a ‘good enough’ trade setup to use as addon2 if a partial profit hadn’t been taken
      • Evaluate this based on perceived odds of continuation, something I especially like it when there are 2 midline reject setups so a triple break is included – but with the diagonal breakout potential through the previous downswing and more than partial room to the diagonal high, I would be fine with trading this as addon2
  • Review of the previous video Renko price momentum divergence sell, adding this momentum extreme reverse trade setup to our Renko trading
    • A comparison of the price extreme reverse and a price momentum divergence sell has an additional component that can actually make it a better trade – instead of simply trading the momentum extreme based on a price extreme, the PMD trade enters after momentum becomes divergent to price and has thus ‘taken-away’ the potential for a price swing resumption trade
  • Price extreme reverse buy + price envelope reverse addon1 + midline reject addback = +4+4+4 and trailing the 2nd initial trade contract that could be closed at an 8 brick target or continued to trail for continuation
    • Again the tradeoffs between a momentum chart read for continuation -vs- the giveback if there is a price extreme reverse in the next 2 bricks AND the odds for continued directional bricks without the counter brick
  • Price extreme reverse sell + price momentum divergence sell addon AND a further discussion about the PMD trade and a further comparison of this trade setup with the previous PMD sell
    • These 2 trades were followed by a price envelope reverse sell and not then a midline reject, so I did not have an addon2 like before – the initial trade gain 4 bricks for partial1 and the addon gained 4 bricks for its exit [2+1 trading]
    • The initial trade trailer then went 4 more bricks for the ability to take an 8 brick target exit -vs- holding to support 2 bricks lower for a 10 brick exit
      • What are the odds of going 2 more bricks without a counter brick after the price has already gone down 7 bricks AND is it ‘worth’ giving back 2 bricks on a price extreme reverse trying to gain 2 more bricks – I suggested for a 2+1 trader to take the target exit in this case

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video493:

  • Renko British pound trading chart, beginning trading the following day but looking at left-right prices that will be brought forward (a) support = previous resistance as the initial daily high that synchs with a closing double top and again synchs as support again and a double bottom before start trading (b) resistance = another price action price that is both support and resistance, starting as a previous day high that breaks out and then holds as support and breaks and shifts to resistance as a high reject-brick break high reject
    • Trade1 actually uses the support price as a resistance failure price because of a break back through the price before start trading – the trades is a [resistance] price break2 with mex flow-fast momentum hook and then shifts back to support
  • Renko price failure break + midline reject with mex flow-fast momentum hook addon, with the initial trade getting partial1 and the addon [2+1] trading getting its 4 brick exit – the initial trade goes to the 8 brick target
    • Discussion of taking the 8 brick target exit when trailing a price extreme reverse, which would have a 2 brick giveback from the directional brick high
    • But a chart read for momentum and mex flow shows the potential for more continuation – also discussed is the odds of continued directional bricks without a counter brick, regardless of mex flow
  • Renko price extreme reverse sell followed by a green brick and the question of whether this is a resumption trade back long – seeing both mex lines at their max extreme and no fast momentum hook, the answer is no and the trade is held for a stop OR ideally a price momentum divergence high hold
    • The swing resumption does go to a price momentum divergence high and after the PMD and brick break below the midline, I did a sell addon
    • We have been discussing the PMD as a momentum extreme trade that could be done – discussion of this trade and the setup components that actually can make it a higher odds trade than the price extreme reverse
    • I did not do addon2 at the Renko price envelope reverse but when there is a midline reject with mex flow-fast momentum hook that had very good diagonal breakout potential, I used this setup as addon2
  • Discussion of 2+1 traders doing 2 addon trades for some additional size when the chart shows very good continuation potential – the initial trade gains its partial1 and both addon trades gain their 4 brick exits
    • The trailing initial contract goes to a target exit of 8 bricks that is also on support, where it would lose risk-reward for bigger profits and a good time to take the target exit instead of hold

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video492:

  • Renko British pound trading continuing from the previous trading video [video490] – all trading prices remain relevant and there is no adjustment AND the last trade is a price envelope reverse sell, followed by a midline reject with mex flow-fast momentum hook addon
    • The addon is followed by a 2nd midline reject with mex flow-fast momentum hook – this is the M pattern trade setup to use as a 2nd addon with (a) very good mex flow only in the middle of the range (b) fast momentum hook with no divergence (c) previous swing diagonal breakout potential that is more than partial width
    • AND what I like the best about this pattern trade setup is that it also has a resistance reject as a ‘backstop’ to the trade and to ‘push’ price into the diagonal – an additional addon I would say a 2+1 trader could take if they were willing to trade 2+1+1 in selective situations
  • Renko sell1 gets its 4 brick partial and each addon gains 4 bricks for an exit [if 2+1 trading] and trailing 1 contract – would you exit on strength?
    • WHY would you consider this (a) you are trailing a price extreme reverse – which would give back 2 bricks of profit (b) 1 more red brick would be a move to support and decrease the risk-reward for continuation
    • BUT if you exited here, 1 brick from support, would this be a random decision where mex flow looks like support ‘should’ hit and not based on a price momentum divergence or target exit
      • I would say yes and would need to continue to trail and except the giveback from a price extreme reverse – but do exit at price and 7 bricks [instead of 8 bricks target] and the support reject-price extreme reverse that would give the 2 bricks of giveback
  • Price extreme reverse buy + price envelope reverse addon, with trade1 getting partial1 but price becomes a brick miss test of resistance and there is a price envelope reverse sell – is this a Renko trade setup or are we now inside consolidation and should go flat only?
    • When looking closer at the price move to resistance that holds, we can see an up trendline break at the price envelope reverse with partial profit room back to support – we are not inside of consolidation and this Renko sell is a reverse of the trailing longs
  • Renko price envelope reverse buy + midline reject with mex flow-fast momentum hook gains a 4 brick partial1 and a 4 brick exit for the addon [2+1 trading] – what do you do after a price reject of resistance with no target exit?
    • Unlike the management discussed for the sell and the ‘random’ exit, this time we can see the resistance reject and a price momentum divergence if it would break a 2nd time – go flat on the move back below resistance, regardless that the exit would be on the midline -vs- holding for price continuation and a price momentum divergence hitting price resistance again

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video491:

  • Renko oil trading chart looking at beginning trading prices (a) inside price [resistance1] = high after session break confirmed by right side price action – brick miss reject then later a brick break reject that eventually breaks out and shifts to support (b) outside extreme [resistance2] = price breakout as support and then a retest-reject shift to resistance followed later by a double top (c) outside extreme [support] = daily low and lower low than the previous day
    • Question – I give these price descriptions to explain how-why I identified the trading prices but also for everyone to ‘read the language’ and visualize the price and price action before it is seen in the video
  • Renko oil trade1 and discussion about price identification-pattern development – the inside price is straddled and there is a double bottom underneath it, should the trading price be adjusted to this new price?
    • Looking at the prices above-below the straddled price we see falling lows with the double bottom AND we see mex is in the middle of the range and braiding
    • We are looking at a consolidation period and trade1 would be a consolidation breakout that includes a multiple down trendline hold-straddle price reject as resistance, through the triple break [of the previous double bottom] – price was never adjusted for the pattern low
  • A Renko price extreme reverse buy is followed by a swing resumption and previous low break, what is done with the buy?
    • The swing resumption is (a) midline reject (b) without a hook or a mex flow (c) that is clearly into a price momentum divergence (d) and only goes 3 bricks against the open trade – hold the trade for a stop or a PMD reverse?
    • The trade is never stopped out [held] and is followed by a price envelope reverse addon – NOTE another example of a PMD trade that could have been done
    • Discussion of the Renko 2+1 trade management for the 2 buys after the 4 brick partial and addon exit and the initial trade trailer goes 8 bricks – do you take the target exit and go flat -vs- trying to hold for additional profit?
  • The previous buy swings end with a Renko price extreme reverse sell, which is also held on a resumption into a price momentum divergence high and only 3 bricks against the trade
    • Another discussion of trading the PMD [in this case as an addon trade], which had significance because the price envelope reverse addon was filtered for price
    • We continue to see PMD reverses as viable for management [if there wasn’t a previous price extreme reverse] and as a trade – potentially a better setup than the price extreme reverse when a resistance-support price reject would be included in the trade setup

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video490:

  • Renko British pound trading chart day before trading, identifying 2 trading prices defining the range trading will begin inside – also significant because we are coming to new price lower lows not seen for the last week (a) resistance = initial low and double bottom breakout as support and shifting to resistance (b) support = lower low that was also a ‘brick miss’ test before the session break
    • Note the resistance break right after the session break and then right back down into a price envelope reverse sell – there was no price adjustment made
  • A Renko price envelope reverse sell was the first potential trade but I hadn’t quite started trading yet – this trade and the continued downswing show the method objective of having the ‘biggest trading size for the biggest price moves’
    • Discussion of bigger trading size compared to 2+1 trading, where there is no addon and profit targets are hit but the swing continues
    • Why adding trading size over time [when the trader is ready] is an objective – yes, bigger trading size when there are no profits will give a bigger loss but this is offset by the biggest moves that may even include a profitable 2nd addon
      • Renko trade1 = midline reject addon as the initial trade [to the missed price envelope reverse sell] with 8 bricks of price continuation to support and what would be a max target exit
      • Management discussion at target support if there was a bigger trading size and/or in the case of 2 contracts only whether there is a chart read to continue to trail -vs- taking the target exit and going flat
    • Risk-reward discussion for a target exit compared to the giveback involved if trailing for a price extreme reverse – if more trading size or a chart reading for trailing, would have given a 15 brick profit -vs- the 8 brick target exit
  • Renko price extreme reverse sell + price reject-midline reject addon + price reject-midline reject2 – discussion of the components in this Renko trade setup and the taking of a 2nd addon
    • Especially important for this decision are the (a) double price reject-triple break entry (b) with mex flow that is still only to the middle of the momentum range (c) with diagonal breakout potential through the previous swing that is more than partial width

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video489:

  • Renko British pound trading that continues from the previous video and shows 3 specific trading periods for 2+1 trading (1) 3 trades +16 to +20 bricks profit, depending on taking a target exit -vs- giveback (2) 7 trades breakeven – the period was profitable until a ‘last’ losing initial trade + addon (3) 4 trades +4 +4 -3 +8 +continuation profit for the 2nd contract from the initial trade [not mentioned on video]
  • Important discussions for the video especially include the 2nd trading period, along with the management for the initial trade and addon trade for the 3rd period
    • Besides being more trades than period 1 or 3, period 2 was also a breakeven period – was this period overtraded and/or was there any indication [chart read] that trading should be discontinued
    • The key to the initial trade + addon trade for period 3 was a diagonal line as support – without this trendline as support, the gain-loss may have been -1-1-2 -vs- +4+4+8
  • A Renko price extreme reverse buy was held against a midline reject resumption because the resumption was filtered for support and there were only 3 bricks against the trade – this hold then got a price envelope reverse addon
    • But before there were any profits there was a price envelope reverse sell and although this trade setup was filtered for support 2 brick lower, it may have been used for management and an exit of the trades
    • If this had been the case, 2 ‘max’ profit trades for 2+1 trading would have actually have been losing trades – but instead of a trade exit there was a trendline as support hold
  • One management mistake that I feel was made was on the addback, which was the 3 brick loss in trading period 3
    • When I did the Renko addback trade, which was a resistance price failure break after the initial trade partial1, it quickly retraced and was exited below the midline -vs- also holding that trade for the trendline support and a full stop
    • This was the difference between a 3 brick loss and a 4 brick gain

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video488:

  • Renko British pound trading chart looking at 2 chart prices and whether they will be used for trading the next day (a) resistance = price action price – it is first a support price that breaks out to lower lows shifting from support to resistance (b) support = double bottom low and although we break to lower lows, before the next day’s trading we are above the price and it is again support
    • Opening resistance is adjusted 1 brick higher to the higher high after the session break BUT not because it is a higher price but because we get a double top at that price
    • Renko trade1 comes after the double top high after the session break, again confirming the trading price – there is a double top reject-price extreme reverse but the setup occurs right before I began trading
  • As discussed, I missed the Renko price extreme reverse sell and went short the following price envelope reverse sell – note that before the price envelope reverse there was a high brick break-price momentum divergence high
    • If you were short the price extreme reverse, what do you do when the high price breaks – do nothing, the break is to a price momentum divergence high and the trade is not stopped out so you hold the short at that point
  • Short the Renko price envelope reverse BUT with the resistance price reject-price momentum divergence high is there also a price extreme reverse ‘replacement’ trade that can be done as the initial trade, making the price envelope reverse and addon trade?
    • Yes, this is another good example to ‘replacing’ the price envelope reverse when it can’t-isn’t traded and when the additional price action is considered at resistance and with the PMD high, this is actually a better trade setup
    • Discussion of the following – if this is a better trade setup should you stop trading price extreme reverses and only reverse on a similar price momentum divergence-trading price reject?
  • Renko price momentum divergence short + price envelope reverse short AND with 1 partial on the initial trade, there is a midline reject with mex flow-fast momentum hook that is done as an addback short
    • The addon and the addback both gain 4 bricks and are flat [2+1 trading] AND the initial trade goes to an 8 brick target – is there a chart read that indicates taking the target exit -vs- holding for additional downward price movement and a bigger profit?

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video487:

  • Renko oil chart after the EIA inventory report and determining trading prices after the news got ‘into the market’, along with discussing whether these prices continue to remain relevant for trading the next day
    • (a) resistance [outside] = daily high, confirmed again by a PMD high brick break test and reject – note that even though this resistance price broke after the session break, how it was a quick break-test that was a reject and the price wasn’t adjusted
    • (b) support [inside] = this was the initial daily high after the EIA report and then acted as a price action price as both support and resistance – the last time we see price action as support on the breakout and move to the daily high
  • Renko oil trade1-2 (a) price envelope reverse buy goes 2 bricks and is followed by a price envelope reverse sell that gains a partial profit – note how the reverse gives a 2 brick loss, which is covered by the 4 brick partial profit
    • Renko oil trade3 is a price extreme reverse buy that is followed by a price swing resumption, however, this trade is filtered for the support price and is held then held without being stopped out – further, note the price action at the left-right support price and 3 consecutive bricks rejecting [confirming] the price
  • The Renko price extreme reverse buy is followed by a price envelope reverse buy addon and on the initial 4 brick move there is partial1 and the +4 brick exit of the addon [2+1 trading] AND then another 4 brick move – do you take the +8 target exit or continue to hold the trade?
    • Management discussion of the +8 target exit -vs- holding for a bigger profit and the following conditions (a) trailing for a price extreme reverse (b) resistance 1 brick higher
    • Taking a target exit -vs- a price extreme reverse saves 2 bricks of giveback and if the price extreme reverse comes after a resistance reject 1 brick of giveback is saved – take the target exit against the giveback and the risk-reward for continuation at that point
  • Renko oil price envelope reverse sell + midline reject with mex flow-fast momentum hook addon – further discussion of 2+1 trading and times to do 2+1+1 trading with a 2nd midline reject-M pattern breakout as addon2
    • There is another management discussion of a target exit -vs- continuation hold, with the target on the support price and trailing a price extreme reverse – also note the support price reject and the left-right price confirmation

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video486:

  • Renko British pound trading, continuing from the previous video but first a review of the initial support price and adjusting left-right support for a right side double low after the session break – what if the price isn’t adjusted but then the low price breaks by 1 brick?
    • In a case where the price breaks by 1 brick and goes right back up – I would then view this price action and test of the double low and adjust the support price to the double low AND not to the brick break lower low test-reject
  • Discussion of a chart read for reducing giveback after partial1 and what if at the time of this profit you have mex flow -vs- mex at its maximum extreme?
    • This is a time where the chart read gives no indication of price retracement, either from a momentum extreme or price momentum divergence AND in this case we also weren’t at a resistance price
    • I would say there is nothing that could be done besides continue to hold the trade for a reverse or retrace and continuation, which is what happened on this trade, giving the opportunity for a +8 target exit or even +12, if the trade was held further because you had mex flow going up at the time of the +8 target
      • Further discussion of holding at the +12 target and the condition of momentum at the time, along with holding but getting a counter brick would give 2 bricks of giveback -vs- no giveback at the target – the decision being made based on the odds for more continuation
  • Renko price envelope reverse sell + midline reject with mex flow-fast momentum hook addon AND then a 2nd midline reject with mex flow and a fast momentum hook
    • Discussion of taking the 2nd addon trade with 2+1 trading and a ‘selective situation’ where you could be willing to increase your trading size from 3 contracts to 4 contracts
    • Management discussion for the trailing contract after the initial sell and both addon trades get a +4 profit after there is a price momentum divergence low
      • Exit at the counter brick, because (a) there is no profit target exit available (b) you actually don’t know where the price divergence low is until you get a counter brick

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video485:

  • Renko British pound trading chart, looking to the left of beginning trading at prices on the chart and moving them to the right – deciding whether these will be the same prices used for trading or whether they should be adjusted
    • Note that we want to move prices across the chart and continue to use them for trading -vs- having multiple adjustments as price moves – having price action that continues to confirm the trading prices increases the relevance of the price and our confidence in them
    • Trading price1 = (a) left side double bottom that breaks out as a triple bottom (b) but instead of shifting to resistance the price breaks again and shifts back to support – with the last test-reject and a move to a higher price than the previous swing high
    • Trading price2 = (a) previous low with the price continuing to remain higher (b) the last time we see [test] this price it is a brick miss test and hold as support
  • When I started trading the left side prices have remained relevant, with trading price1 resistance and trade price2 support – however, right before starting to trade there is a double low price 2 bricks below the left-right price, should support now be changed to this double low?
    • Discussion of the price adjustment (a) keeping the left-right price as support (b) adjusting support to the right side price (c) creating a support area between the 2 prices
    • I created the support area BUT realize that many would adjust the price -vs- viewing the double low as a price test – and it would be one of those instances where a filtered trade would become a losing trade
    • Yes, having a trading price located a couple of bricks differently would affect trading profits-losses but this would ‘equal’ out and not simply always be a loss
  • Renko price envelope reverse buy gets no profit and a 1 brick loss on the filtered price envelope reverse sell – if the price envelope reverse sell wasn’t filtered it would have a full stop against it BUT in no case could the original buy be held
    • Renko midline reject buy [continuation a swing resumption that couldn’t be traded because no mex] gets its 4 brick partial – management discussion for holding the trailing contract instead of an 8 brick target exit AND if held, taking a 12 brick target exit instead of trying to continue to hold

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video484:

  • Renko oil chart left of the session break showing a breakout to new price highs not seen in 2019, with this closing range (a) resistance = price high with 3 rejects into a price envelope reverse right before the close (b) support = previous price high with the price action of a price failure break
    • After the session break, oil goes up again breaking out to higher highs and to a price extreme reverse sell that occurs, right before I began trading and then a resumption to a price momentum divergence high – ‘can’ this pattern be used to go short after missing the price extreme reverse?
  • Discussion of shorting the price momentum divergence high after a price extreme reverse; we have talked about this a few times before when a price extreme reverse is missed due to when start trading or because at the time both mex lines haven’t gone to an extreme
    • This pattern trade could actually be thought of as having better odds of reversing since the attempt to resume the previous swing failed with the divergence
    • Note that the sell was at the same brick-price as where the price extreme reverse would have been and besides having the PMD there was also a mex cross
  • Discussion of a price failure breakout addon after the PMD sell and with the price envelope reverse sell a filtered trade (a) price envelope reverse goes to the support price (b) retrace up and then back down to the support price = double hold (c) lower high midline reject with mex flow-fast momentum hook
    • The price failure breakout sell is a price triple breakout into the diagonal breakout potential of the previous upswing – this setup being the failure for the price to remain support
  • Management discussion for the 2nd contract [2+1 trading] in a profitable trade and taking a +8 target exit at a PMD low instead of continuing to trail and/or waiting for a counter brick
    • When trailing and waiting for a counter brick the result becomes 2 bricks of giveback -vs- no giveback at the target exit AND at a time when it is determined that there is not good risk-reward to continue trailing because of the PMD

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video483:

  • Renko British pound chart looking at the left side and noting a large downswing and noting 2 trading prices inside this range, where neither of these prices is an outside price BUT both of them have trading that defines a relevant range
    • The trading prices actually come after the session break but before I started trading and are resistance1 and support1 [meaning that they are inside of the outside extreme prices] while inside of the range
    • (a) resistance1 = gap down after the session break with a small retrace – the retrace high makes a double top ‘straddling’ the session break (b) support1 = double bottom low after the session break
  • The first potential Renko trades are (1) midline reject buy but against mex and filtered for resistance1 (2) price envelope reverse sell but filtered for an uptrend line that starts from support1 (3) midline reject that does have mex flow-fast momentum hook but is also filtered for the uptrend line (4) price envelope reverse buy before a mex cross
    • 4 potential trades that were all losing trades but that were avoided because they were filtered for a price and/or momentum – especially note the uptrend line as diagonal support
  • Renko trade1 = price envelope reverse sell that occurs under the uptrend line, so it is not a filtered trade – followed by a midline reject with mex flow-fast momentum hook
    • The addon holds support and is a losing trade and there are multiple consecutive losing trades, all because the resistance1-support1 range hold BUT trading is continued because we never get consolidation – which we can see from the slope of mex and the midline, along with the price envelope dots not flipping green-red after a couple of bricks
    • The tightness of price movement does reduce the size of the trade losses, from going 3 bricks before a price envelope reverse and the resulting loss – 2+1 trading at this point has a total loss of 5 bricks
  • Renko trading support1 again holds and there is a price envelope reverse buy that goes to resistance1 and is followed by 2 more winning trades – and still with the range holding but never going into consolidation and 2+1 trading gains 18 bricks
    • Resistance reject price extreme reverse but no trade because the purple mex line isn’t extreme, which is followed by a resistance double reject-mex lower high cross – can a trade entry at the original price extreme reverse price now be traded?

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video482:

  • Renko British pound trading starting with a price envelope reverse sell that is filtered for price support (a) support = double bottom before the session break that is also the previous day low (b) resistance = left-right price action price, especially for being a price low failure breakout followed by a price failure break as resistance
    • Understand the Renko method ‘language’ for failure breakout and failure break, failure in both cases for the price failing to remain support or resistance
    • The failure breakout occurs at price and in this case, is a double midline reject-triple break of the price, whereas the failure break of the price is a midline reject-price break2 with mex flow and a fast momentum hook
  • Renko chart price action discussion moving across the chart for the support price of special note (a) period where the price is being straddled (b) clear consolidation from mex ‘braiding’ in the middle of the range and the horizontal midline
    • But when drawing additional lines on the chart there is a double high consolidation, with a rising trendline – note how the trendline filters Renko sells as diagonal support AND how the breakout out of support is a price-uptrend line reject, triple top breakout
  • Renko trading support filters 3 losing trades with trade1 being a support reject-price envelope reverse buy that gets partial1 and a price extreme reverse sell addon
    • The +4+3 brick winner is followed by 2 losers -2-2-4 = -1, which would always be a good thing for 1 winner and 2 losses – these trades are followed by 2 winning trades = price envelope reverse sell-midline reject addon, gaining +4+4+8 = +16 ‘target maximum’ on 2+1 trading
    • Discussion on chart reading and taking ‘target’ profits -vs- holding a trailer for potential additional gains – in this case, mex flow continuing to a price extreme reverse buy BUT also note that the 2 bricks of giveback -vs- the +8 target only gives 1 more brick of gain
  • Renko price extreme reverse buy is immediately followed by a midline reject swing resumption – discussion of momentum at the time of the resumption and holding the buy with only 2 bricks against it and ‘buried’ mex-divergent fast momentum

Renko British Pound Chart Day Trading Strategies

Renko Day Trading Video481:

  • Renko oil chart trading in the afternoon after a period when I had been flat from early British pound trading and saw a specific setup I wanted to try; price identification at the time…
    • (a) resistance = the left side price movement shows a sell-off that made lower lows and then a retrace to a price that was the high price before a breakout to lower lows again that later becomes a double top (b) inside price [support left side – inside price right side] = double top high after session break (c) support = inside price reject to swing low that was also a left-right price action price
  • The Renko oil trade1 first appears to be a price envelope reverse sell only with no reason to be ‘drawn’ to the trade, but what are we really looking at becomes apparent when drawing in pattern lines
    • The price envelope reverse synchs with (a) double high-mex lower high price envelope reverse (b) trendline break – downside wedge break-previous swing resumption – the price envelope reverse is then followed by a midline reject with mex flow-fast momentum hook addon
    • Management discussion after partial1 on the initial trade and an exit of the addon trade – exit the trailer on a fast momentum divergence and break above the support price as resistance
  • After going flat the Renko sells there is a price envelope reverse buy followed by a midline reject addon AND then a second midline reject that can be done as an addback since the initial trade partial1 has been gained
    • This could also be a second addon if trading bigger size since this is a W breakout, with mex flow and where the fast momentum hook is not price divergent
  • Renko 2+1+1 addback management discussion, gaining +4+8+4 on the initial trade and the addon – and whether the addback should also be +4 and flat or whether there is risk-reward to hold this for a bigger gain
    • The price is at resistance but with mex that still has flow – hold the trade for a breakout or giveback 1 additional brick if resistance rejects -vs- going flat with a +4 exit and incurring no giveback if the resistance price doesn’t break

Renko Oil Chart Day Trading Strategies

Renko Day Trading Video480:

  • Renko chart ‘proper’ price identification created (a) a range that was to tight to trade (b) the decision not to trade until there was a range breakout setup and/or range widening
    • But in any case, there was 1 losing trade -vs- 9 losing trades that were avoided by filtering for the trading prices and then the trendline in a compression triangle
    • After the 1 loss there was no more trading done until a price-triangle breakout that also got an addon – 2+1 trading = -8+4+2-4 = -6 bricks and very good for a losing period, especially compared to what non-filtering would have cost in trade losses
  • Renko trading was then filtered for 5 more trades = 3 winning trades and 2 losing trades and a period of profits but not trading could be done because the price was inside of the initial range OR the range breakout did not have a trade setup
    • The support price was eventually adjusted for a range breakout through support and a double bottom at the new lows, giving range widening and more room between the initial support and inside price [resistance1] prices
    • Discussion of the timing for the price adjustment to the double bottom low -vs- the initial low only – this timing did ‘cost’ the +3-2 trades mentioned before but did not cause a miss [from filtering] of the best trade[s] during the period
  • The Renko price support adjustment to the double bottom low was followed by a price envelope reverse buy + midline reject with mex flow-fast momentum hook addon – both of these trades were through a previous swing diagonal with room to resistance1 that had no reason to ever be adjusted
    • Renko trade management discussion after the +4 initial partial+4 addon exit AND exiting the trade at +8 -vs- holding for additional profits on a filtered price extreme reverse-midline reject
    • The trailing contract was held for a +11 profit – the exit coming after a ‘buried’ mex cross-counter brick combination

Renko Chart British Pound Day Trading Strategies

Renko Day Trading Video479:

  • Renko British pound (a) price failure breakout [discretionary] (b) price failure break = addon-addback combination if the price failure breakout was traded OR a price failure break addon if not – in either case, there would be at least 2+1 trading size winners -vs- +2 initial trading only
    • Even though there was a price extreme reverse sell that was a loss without a buy resumption addon, the loss was a 2 contract trade -vs- a 2+1 or 2+1+1 winning trade
    • Also note the following trade sequence (a) initial + addon = +4 -3 +1 (b) initial = +4 +1 | 2 minimal trade winners compared to a full profit objective but they were net gains that also covered an addon loser
  • Renko trading prices going to the right retain the left-ride resistance and support price but a new ‘inside’ price becomes relevant – the multiple day low price becomes a double bottom with the initial low after the session break
    • Further discussion of the new price and the potential trading difficulties that would be caused because of how tight the range is unless we get a breakout to a wider range
    • I was looking for additional trading and lower prices to adjust support downward, which would widen the range to the ‘inside’ price as the first resistance price
  • Discussion of price movement inside of the lower range and how there was 1 losing trade before price compression and a triangle developed – the horizontal prices + triangle trendlines filtered and avoided 5 losing trades
    • The next trade that was taken was a Renko price envelope reverse-triangle breakout-price failure breakout setup that went to a partial profit and did extend the trading range downward
    • Discussion of my timing for adjusting support to the new low after there was a double bottom there -vs- doing so when it was a single low – I also understand how many would adjust [and really not be wrong] for the new low
  • Renko price envelope reverse + midline reject addon with mex flow-fast momentum hook gained +4 +4 +11 for 2 +1 trading
    • Renko trading management discussion that included (a) initially holding a filtered price envelope reverse and only 3 bricks against the trade (b) reading the chart for price continuation and further trailing the last contract for a bigger gain than a +8 exit

Renko Chart British Pound Day Trading Strategies

Renko Day Trading Video478:

  • Renko British pound price lines are established at the locations seen and not left-right prices (a) initial high that breaks out with failure break to higher high (b) higher high becomes new resistance after a price envelope reverse, with the previous high shifting to support
    • These right side prices are significant because these are new highs and a breakout of prices not seen since last November
    • Especially note a retest of support with a quick breakout and move right back above the price, with a double hold as support and back up AND no adjustment of price – we then see confirmation of the resistance price with a brick break test-reject and back down
    • There is a price adjustment made for support to a double bottom 3 bricks below the price
  • Renko trade1 = price reject-price envelope reverse sell + midline reject addon – note the management for 2+1 trading = (a) partial1 (b) break even exit (c) addon 1 brick loss on price envelope reverse buy
    • +3 bricks is a very minimal winning trade but what is most important is that there is no loss on a trade that has no continuation at all
  • Renko trade2 = price envelope reverse buy + double midline reject pattern breakout addon – discussion of what would typically be viewed as a filtered trade [as was the reason for not buying the first midline reject] and the decision to take the trade as a price failure breakout
    • So, the trade has to be considered discretionary – but the setup, along with mex flow below the extreme line and the idea of a breakout of a high price not seen since last November was an additional basis for continuation, with the price breakout setup
  • Further discussion of this trade and management, including exiting on strength +4+8 for the initial trade -vs- whether there was a chart read for more continuation and trailing, with a +4 profit exit for the addon trade
    • NOTE:  I made a notation in the video that wasn’t discussed [will be discussed further in the next video] – about whether there was a price failure break addback setup that would give this swing an addon if the discretionary trade wasn’t done and/or increasing the profitability of the swing by replacing a partial profit

Renko Chart British Pound Day Trading Strategies

Renko Day Trading Video477:

  • Renko oil chart day trading focusing on management +2+1 trading, remembering that with the addon and extra trading size, we can maximize for bigger trading profits for winning trades -vs- losing trades
    • And this is all while having a maximum open trading size of 3 contracts, even with addons and addbacks that replace a contract[s] that have a partial profit
    • Consider a losing trade to be -4 *2 and a winning trade with addon to be +4 +4 [addon exit] +8 [initial trade exit] and a winning addback of +4 – that would be a -8 -vs- +20 on the ‘bigger’ moves, which is the profit objective for our trading method
  • Renko oil trade1 is ‘centered’ around a resistance = double top high after session break that is higher than the previous day high and showed a shift to support before breaking to a higher high – but a price envelope reverse buy occurred on a red brick, making trade1 a price envelope reverse resumption sell
    • Further discussion of the entry brick, which is actually the 2nd price envelope reverse bricks and ‘squares’ off with the break below resistance-support before the reverse, trying to ensure that we are not selling a higher low and a ‘straddle’ around the price line
  • The Renko price envelope reverse sell goes to partial1 and then a full brick close above the midline, followed by a price envelope reverse buy
    • Discussion of management and profit give back on a winning trade but a trade that does not go to a +8 exit -vs- holding for resistance
    • And in this case, a clear trendline that becomes diagonal resistance and how it filters 2 losing price envelope reverse buys, while also allowing for a hold of the trade – where a +2 would be flat but a +3 would still have a trailer at the swing low
      • This is further important for Renko trade management regardless of trading size and considering win:loss ratio and size because without filtering there would be 2 full stops without partials that would have to be included
  • Discussion of a price envelope reverse buy above then trendline where it is not resistance, followed by a Renko midline reject with mex flow-fast momentum hook addon that gains initial +4 partial1 +4 addon exit
    • The trade does not go to a +8 trade exit but instead to a price momentum divergence high – trade management discussion of the risk-reward on continuing to hold the trade -vs- exiting on a counter brick after the divergence and a +3 exit on the trailing contract
    • No, not a +4+8 trade but a +4+4 [addon]+3 still gives a gain of +11 [which is bigger than a 2 contract loss] AND gives a giveback of 2 bricks -vs- 4 bricks

Renko Chart Oil Day Trading Strategies

Renko Day Trading Video476:

  • Renko oil trading and some review from the previous video for (a) trading 2+1 size (b) trade management and reducing giveback with +4 partial +8 exit -vs- chart reading for the +8 exit and how it could be expanded (c) being able to still try to maximize trading size for the biggest price moves
    • Addon-addback trades that keep trading size a maximum of 3 contracts but can increase profits with continuation – starting with initial trade risk of 2*4 bricks
    • Chart reading aspects, especially momentum when in a trade that has broken through price support or resistance that could increase the exit size and still minimize giveback, including the risk-reward of an ‘extra’ brick of giveback as a percentage of overall profits
  • Renko trade setup that includes method filtering -vs- pattern and price breakout setups that may not include all the setup components to be a Renko setup
    • Further discussion of the compression triangle breakout pattern and how it was a profitable trade while also avoiding multiple losing trades inside of the triangle
  • Renko price extreme reverse as an exit and management that minimizes giveback to 2 bricks while attempting to stay in a trade for continuation [-vs- exiting the trade at a fixed 8 bricks] – but also has the potential to become a ‘next’ winning trade
    • Renko price extreme reverse + price envelope reverse addon, giving the potential for profits on 3 trades -vs- loss on the initial 2 contracts if no profit and no addon
    • Management discussion for these 2 trades on a move to resistance – especially discussing resistance hitting after a 5 brick move and trailing a price extreme reverse BUT a reverse that would be filtered for momentum, because both mex lines are not above the extreme
      • Do you go flat +4+4+8 or do you hold a contract for continuation – discussing the chart read for continuation at this point and if you do stay long, when do you go flat if resistance continues to hold

Renko Chart Oil Day Trading Strategies

Renko Day Trading Video475:

  • Renko oil chart traded after being flat and not trading for a while, based on seeing a ‘group’ of trade setup components (a) price momentum divergence high (b) at the left-right resistance price (c) with a previous swing diagonal from the support price that gave 7 bricks of room – sell the price envelope reverse
    • Further discussion of the setup and initial trade management, because regardless of ‘how good’ this trade setup was it retraced instead of going into the previous diagonal and then went into consolidation-compression
  • Hold the trade for the price envelope reverse, because it was at resistance and there were only 3 bricks against the trade – followed by a compression triangle breakout-price envelope reverse that was used for an addon
    • After the compression breakout, there is a Renko midline reject with mex flow-fast momentum hook and this setup occurs ‘inside’ the previous swing diagonal component of the initial trade – with this continuation factor the trade was taken as a 2nd addon
  • Discussing the Renko oil trade setup starting with the triangle breakout as if that was trade1 + the midline reject addon as trade2 AND managing the swing for trading 2 initial-1 addon contract
    • Note how this is the first step in having a bigger trading size for profitable trades – if you have a losing trade with 2 contracts -vs- having a winning trade with 3 contracts
    • 2+1 trading means that you will trade 3 contracts, so when you get partial1 for the initial you have 2 contracts left and then this is followed by a 2nd midline reject with mex flow-fast momentum hook that is still inside the previous diagonal
      • Discussion of an addback, which is simply another addon that takes you back to 3 contracts- taking this trade further allows the 2+1 trader to have bigger size and more profit potential
  • IF you trade +4+8 bricks for the 2 initial contracts, in order to exit with no giveback and both addon1-addback1 get a 4 brick partial, you would be flat but you would also gain 20 bricks of profit -vs- 8 bricks of risk on the initial trade
    • BUT do you want to be flat at a set brick total when you break below support and still have mex flow – discussion of the risk-reward for holding the last contract at this point

Renko Chart Oil Day Trading Strategies

Renko Day Trading Video474:

  • A Renko trading system would take the 3 ‘base’ setups when they occur mechanically, regardless that they may be inside of consolidation, into a trading price, or against momentum -vs- a Renko trading method that trades the 3 ‘base’ setups but filters against trading when these setups have lowered odds
    • There can also be a discretionary trade that has a basis for consistent price continuation but does not have the requisite Renko trade setup components – do not think of discretion like a whim or a coin flip
    • (a) midline reject-M triple break (b) mex flow and a fast momentum hook (c) into a previous price momentum divergence at the price (d) into a diagonal breakout- is a filtered Renko trade for the trading price but is a discretionary trade as a price failure breakout
  • Trade management for trading size differences, specifically 2 initial contracts, and 3 initial contracts – and the differences for trailing risk after trade partials and profit giveback
    • A 3 contract trade that gets 2 partials is trailing 1/3 of its initial risk and if it goes flat on 4 bricks of giveback [price envelope reverse] it still gets 1 partial
    • A 2 contract that gets 1 partial is trailing 1/2 of its risk AND if it goes to 8 bricks [no contracts for a partial] and then gives back 4 bricks, although you get 4 bricks on the exit you break even on the last 4 bricks of price movement
      • Now consider a 2 contract trade with 4 bricks of stop and 4 bricks of giveback AND let’s just say 50% win:loss [should be higher] – how do you ever do better than breakeven trading?
      • Trading 2 initial + 1 addon contracts give you beginning risk on only 2 contracts but then if an addon trade occurs, you have the trading size and potential for being profitable on 3 contracts
  • Renko price envelope reverse [no addon] goes 8 bricks, so you get a partial profit BUT now what about the 2nd contract and getting more than a 2nd 4 bricks because there are 4 bricks of giveback
    • What if you do a chart read and see the following (a) 8 bricks of price movement (b) mex is at its extreme low with both lines overlapping (c) fast momentum is divergent to price?
    • If you consider the question ‘how many bricks lower’ would price need to go to exit with these 8 bricks of profit, knowing that if there is a price envelope reverse there will be 4 bricks of giveback – does your chart read support the ability for price to continue to a better profit AND IF not, then why not just take the 8 bricks and go flat

Renko British Pound Day Trading Strategies

Renko Day Trading Video473:

  • Renko trading prices reviewed for support and whether a price envelope reverse-consolidation breakout could be sold if there was more room to the actual support price?
    • NO, a consolidation breakout only is not traded, regardless of how much room there is to support – the room does not increase the trading odds or add continuation components to the setup
    • Do note how the adjusted price was confirmed by hitting at the brick low and reversing from the point – adjusting a left side straddled price for the low before the breakout to a higher high
  • Discussion of a traded that shouldn’t have been taken due to a missed chart read for an addon entry right at a previous consolidation support breakout
    • Although I couldn’t say that was a trading price to filter an initial trade, breakout prices like this do often shift to support or resistance and the addon should have been avoided
  • Comparison of 2 Renko midline reject-M patterns for momentum (1) the M pattern had extreme-overlapping mex and no fast momentum hook (2) the M pattern had mex flow that had not hit the lower extreme like and there was a fast momentum hook
    • The Renko M and W patterns have been used for 2nd addon trade setups but the first M would not be traded, where the 2nd M is a good example of when another addon could be done
  • Renko trade management and profit giveback in the context of risk-reward, where a price envelope reverse goes to partial1 and then and continues 3 more bricks [missing a partial2] to a price extreme reverse buy that is filtered but 2 bricks from price-3 bricks from a full brick close above the midline
    • The price extreme reverse would be a smaller partial2 but it would give only 2 bricks of giveback -vs- 5 bricks of giveback if there is a price reverse and full brick close above the midline -vs- price continuation and swing resumption that would give the full partial
    • Further management discussion for an exit on strength for the last contract on an initial trade when there is no addon, based on the question – how much further does price have to go to exit with a profit as big as the one I could take if I went flat right now
      • For instance, you have gone to (a) a price momentum divergence low (b) mex has not only ‘buried’ at the lower extreme it has crossed – price would have to exit 4+ bricks lower than the first counter brick to exit with the same profit BUT with this momentum, what are the odds that this will happen?

Renko British Pound Day Trading Strategies

Renko Day Trading Video472:

  • Renko trade setup review and a discretionary decision -vs- a ‘base’ Renko or price-pattern setup that may not be Renko but is a breakout setup with continuation – I am referring to a price reject-double midline reject before a mex cross
    • Since there was no mex cross on what would be the entry brick than clearly there is no mex flow and there is definitely no fast momentum hook BUT there is a price reject shifting support to resistance and a 2nd lower high midline reject – looking back left to the swing from the low that to this same resistance price, there are 7 bricks and 9 bricks to support
    • What I am trying to describe is a basis for continuation regardless of the components that are missing that would ‘allow’ a discretionary trade in this case – especially the diagonal that would be traded into -vs- a breakout into a previous consolidation period
  • Review of a previous trendline, discussing the 2 points that make the line – and the moderate slope of the line -vs- being too horizontal or vertical
    • And if this is a trendline then it should be extended to the right AND note what happens to a midline reject with mex flow-fast momentum hook – there is a test-reject of the line followed by a price envelope reverse and this diagonal resistance avoided taking a losing trade
  • Price envelope reverse buy led into the midline reject-trendline reject AND a price envelope reverse sell after 1 partial and a breakeven exit – chart read discussion for moving into a tighter range than the centerline and support and what that would do to continued trading
  • The price range [support] does breakout and goes to a price momentum divergence low and then into consolidation – there is first a price envelope reverse [no consolidation] that is a loss BUT by filtering for consolidation there are multiple losing trades avoided

Renko British Pound Day Trading Strategies

Renko Day Trading Video471:

  • Renko trading review and trading inside of a range and transition into consolidation where you would stop trading -vs- no consolidation but the range being of minimal width for price continuation and thus only single profits before a range extreme is hit
    • This issue is especially problematic when trading a Renko price envelope reverse that occurs in the middle of the range  because this reduces the most room to the extreme AND when the range holds and is followed by another price envelope reverse the profit giveback is as big as the profit
    • A decision could be made to handle this like consolidation and stop trading until the range does break, considering that as a risk-reward decision -vs- continuing to take the minimal trades ‘hoping’ that it is an entry into a range breakout
      • By waiting for a break of the range by a ‘couple’ of bricks, even if a single partial trade is missed – a reverse back into the opposite direction has effectively widened the range by giving a trade entry near support or resistance -vs- through the middle of the range
  • Renko price extreme reverse that is used for trade management regardless that it is a filtered trade and reducing giveback -vs- holding a trade for a support or resistance break that gives 4-5 bricks of giveback
    • This is an ‘easy’ decision when there is an addon exited and an initial entry trailer is held ‘in case’ the swing holds support or resistance and resumes its direction BUT what about exiting the last contract in a trade
    • Discussion of Renko management and a trade exit on a price extreme reverse sell that is filtered giving 2 bricks of giveback and risking that the next brick would be a green resumption brick continuing the upswing
      • Basing this on a momentum read for fast and slow momentum showing that the resumption would be into a price momentum divergence that limits continuation -vs- giving back 5 bricks of profit holding for a reverse from price momentum that is very extreme
  • Discussion of an inside price adjustment for price action and not simply ‘single breaks’ of the price line in one direction or the other – in this case, there was a left double bottom held by a right double top, where the inside price is adjusted
    • AND then look at the reaction of a price envelope reverse sell that hits this adjusted price and rejects – actually giving a filtered trade that avoids an immediate losing trade by entering at support

Renko British Pound Day Trading Strategies

Renko Day Trading Video470:

  • Renko British pound prices from the previous video, and especially the lower price that started a support and how this price becomes a straddled price across the chart
    • Further note how mex remains inside the extreme range with multiple crosses back and forth -vs- going from extreme to extreme with the up-down price swings – and multiple price envelope reverses
    • The previous support price has become a straddled price inside of consolidation and has lost its value as a trading price and was adjusted
  • Renko trading price adjustment (a) the breakout of support and the chart low is not simply a low but the lowest low in over a week – this price becomes support (b) the consolidation high is a double top but also more than that as a price action price, where the price is the breakout price that leads to the swing to the low AND then it rejects multiple times as resistance – this price becomes resistance and again is more than the consolidation high
    • Note trading for the rest of the session that includes (a) the resistance price that breaks and shifts to support with a double bottom reject (b) the move to the high that has multiple rejects AND the further confirmation for the resistance price when starting trading
  • Renko midline reject with mex flow-fast momentum hook but that is at the support price – is this a filtered trade or a price failure breakout?
    • The Renko trade setup alone is a filtered trade BUT then look at the support price that has broken twice [double bottom] and how this becomes a price breakout-triple bottom break – this trade was taken as a price failure breakout
  • Problem with trading inside of a range and having room from trading through the center of the range to get one profit let alone a double partial AND then not trading inside the range because of consolidation or price filtering – and the multiple losing trades that were avoided
    • When trading resumed there was a support breakout by a couple of bricks that widened the range for trading by giving a price envelope reverse right above support -vs- at the middle of the range
    • This was followed by a midline reject with mex flow-fast momentum hook that also had more than partial room to the top of the range – both of these 2 trades did go to double partials

Renko British Pound Day Trading Strategies

Renko Day Trading Video469:

  • Renko British pound trading chart going back to the left to identify prices (a) resistance = multiple days previous low double bottom and especially note the price action across the chart that keeps the price relevant AND how although there are some breaks in each direction – trading continues to be drawn back to the price (b) support = chart low-outside price, meaning that we have not broken the price since it was identified
  • The price action for the resistance price-movement back to this same price from above and below is actually the typical price action for an inside price
    • And we know that even with the movement back to this price, the breakouts to higher prices [unlike those of chart support], give us an outside resistance price – the inside price is resistance1 when below it, with the outside high being resistance2
    • Think of the chart in terms of a series of ranges with 2 ranges (1) outside price [resistance] to inside price-inside price to outside price [support] (2) outside price to outside price – knowing that when one of the outside prices breaks out and gives a new range and outside price extreme that the previous outside price would become an inside price
  • Renko trade1 = price envelope reverse sell below the trading price that partials and goes to a Renko price extreme reverse buy AND retraces back to resistance1 and rejects into another price envelope reverse sell
    • Typical Renko trading but do note how the inside price [resistance1] remains relevant with the brick high reject AND also note how trading profits are minimal [partial1] as we continued to stay inside the inside price-support price range
  • Price envelope reverse buy stopped out that is followed by a price swing resumption sell – note how this is actually the price envelope reverse brick2, where mex crosses back and there would not be the potential of selling a higher low brick as a test of the session low
    • Discussion for the management of the trade, where after 2 partial profits I went flat at a full brick close above the midline – intending to try and minimize profit give back based on the risk-reward of continued profits
    • A chart read show a ‘buried’ mex low and lagging fast momentum, which together shows a price momentum divergence low – where holding for a price envelope reverse and trading price break would give 6 bricks of profit give back

Renko British Pound Day Trading Strategies

Renko Day Trading Video468:

  • Renko British pound trading prices (a) resistance1 [inside price] = previous day’s initial high and price action price – double top + failure break to higher highs (b) resistance2 [outside price] = NOT previous high but a left-right price from the 11/7/2018 high – again the British pound continues to breakout higher into new ranges (c) support [outside price] = price action price where resistance breaks and shifts to support, with the price remaining above this price for the rest of the session
  • Failure breakout question-discussion and whether an M pattern at price with the last brick also a midline reject is a failure breakout setup – NO, there is no mex flow or fast momentum hook as part of the pattern setup
    • Additional setups that could be the first trade of the day (a) Renko price envelope reverse buy 2 bricks from resistance (b) Renko price envelope reverse sell against mex – these are both filtered trades that weren’t done and they also were both losing trades that were avoided
  • Renko trade1 = price envelope reverse sell that partialed and went to a price extreme reverse buy – the buy was a losing trade but also note that a price swing resumption sell was filtered and another losing trade was avoided
    • Price envelope reverse buy + midline reject with mex flow-fast momentum hook with both trades getting partial profit1 and then a price extreme reverse sell – again the sell was stopped out but a price swing resumption buy was filtered and another losing trade was avoided
  • My last Renko trade was a resistance reject-price envelope reverse sell that partialed and when to support that rejected into another price extreme reverse, where I exited the trade – note that the price extreme reverse was a losing trade BUT again it would have been followed by a filtered losing sell resumption that avoided a loss
    • Discussion of the trading period which was very marginal and the chart remained range bound but was still tradeable not going into consolidation BUT only giving single partials and a number of price extreme reverse losing trades
    • BUT also note the function that the Renko trading filters played and how many losing trades were filtered, keeping the trading period from incurring a loss

Renko British Pound Day Trading Strategies

Renko Day Trading Video467:

  • Renko British pound failure breakout buy (1) wedge pattern breakout (2) horizontal-diagonal ‘intersection’ breakout (3) mex directional cross [and in this case, actually mex flow] AND is this also a triple breakout of the downtrend line in the wedge pattern?
    • IF yes is this a triple breakout because a trendline has 2 points and the breakout would be the 3rd point and/or is this the 3rd break of the trendline
    • Discussion of a previous 2 point trendline that has a breakout and how it is also a diagonal resistance break1 test-reject that leads to a price envelope reverse sell
  • Similar discussion for a horizontal line breakout, where there are 2 hits of the line followed by a breakout AND whether that would be a triple breakout
    • BUT we aren’t really looking for triple breakouts or price lines that break 3 times – what we are really looking for is a triple break setup, where the break would ‘allow’ the line to fail to remain support or resistance
    • For instance, consider the Renko 2 midline reject pattern where there is a 4 brick midline reject followed by a 3 brick midline reject AND the highs of the pattern are at a price line – that would be a triple break entry at the last green brick from the 2nd midline reject
  • Renko price extreme reverse sell followed by a midline reject – is this a buy swing resumption trade entry?
    • No, there is no mex flow or a fast momentum hook AND a second midline reject that has mex flow also has no fast momentum hook – the buy swing resumption, which would have been profitable if re-entered, never has a trade setup to enter
    • Price extreme reverse followed by a midline reject and whether this is a buy swing resumption trade entry – again the answer is no because there is no mex flow or fast momentum hook but in this case, the Renko price extreme reverse is held for a price momentum divergence and 3 brick retrace
  • Discussion of a price envelope reverse sell-price envelope reverse buy swing resumption AND how both of these are Renko trades – and by doing the resumption trade there is a 2 brick loss only that is followed by a  +4+8+9 price extreme reverse sell exit

Renko British Pound Day Trading Strategies

Renko Day Trading Video466:

  • Renko British pound trading is still going higher and into a resistance range that we haven’t seen since mid-November 2018 (a) resistance = left-right resistance breakout after the session break that shifts to a support price that has multiple holds but then breaks out and shifts to resistance when start trading (b) support = previous day resistance that is included as a break and hold after the session break into the upside breakout
  • Trade1 involves a trendline breakout buy and whether it is a break1 breakout or a failure breakout setup
    • Discussion about there being a breakout only leading to no buy being done, then making trade1 a trendline as resistance reject-price envelope reverse sell
    • The price envelope reverse goes to the support price [brick breakout test] and a price extreme reverse back above support so it is not filtered, which is trade2 + a price envelope reverse buy addon
  • Discussion of rising lows, with the support brick break and then the support price brick, hit being 2 points for a trendline – and then an addon2 setup
    • Rising trendline reject [point 3] and a 4 brick pattern with mex flow followed by a 3 brick midline reject with mex flow-fast momentum hook – this pattern giving another higher low with the entry as a triple break
  • Discussion of another trendline breakout that is done as a buy this time, in contrast to the potential trade1 buy discussed above that wasn’t done BUT there is a unique setup that makes this a failure breakout
    • Wedge pattern around the resistance price gives what I have referred to as a horizontal-diagonal, where the diagonal trendline and the horizontal trading price breakout together AND in this case, including the wedge pattern breakout too

Renko British Pound Day Trading Strategies

Renko Day Trading Video465:

  • Renko British pound long price envelope reverse, with 2 partial profits but a held trade on a full brick close below the midline reject because it would have taken the trade flat [an addon would be close but not an initial only] – never a continuation setup for an addon and trailing the last contract until there was a non-filtered Renko price envelope reverse sell
    • Discussion of the resistance price that is left-right from over a month ago -vs- making the new right side high resistance and eliminating the left side price
    • Discussion of whether the price envelope reverse sell had a failure component – no, and it didn’t need one considering that the price envelope reverse occurred underneath the resistance price
  • Price envelope reverse sell immediately stopped out on a 4 brick stop that was also a price envelope reverse buy, but it was filtered for momentum so no buy and then another price envelope reverse sell was filtered for the resistance price shift to support so no short
    • Transition into consolidation and a discussion of trading inside of an area high that was a price momentum divergence high as a resistance area high
    • There is eventually a midline reject sell with mex flow-fast momentum hook that is also a price failure break AND although this was a losing trade – filtering for consolidation and not trading because of the fear of missing a breakout, avoided a loss for 6 additional trades
      • How can we trade based on the fear of missing a winning trade with the big cost that comes with, meaning that the occasional breakout winner is offset by many more losses?
  • The price envelope reverse short reverse back to buy but it is price filtered, however, in this case, there is a Renko continuation buy trade setup = midline reject-price reject with mex flow-fast momentum hook
    • This Renko buy gets 2 partial profits, again being held for a full brick close below the midline because there was no addon setup, and is eventually exited on a price extreme reverse sell – this was used for management to close the trade because I stopped trading at this point

Renko British Pound Day Trading Strategies

Renko Day Trading Video464:

  • Renko British pound chart focusing first on a price not seen since 11/14/2018 – the price action determining this price was first a double bottom low that broke and shifted to resistance and that broke out again
    • Note that the price not holding as resistance on retest does not mean that the price isn’t relevant any longer, we would first watch for a retest back as support and/or further price action at the price – we would remove a price if there is no relevance on the first test and then the retest
    • In this case, the price goes right back to this trading line again as support that later breaks and again shifts back to resistance, followed by a large sell-off where we do not see another test of the price again – meaning that it will remain on the chart as left-right resistance
  • Additional Renko chart trading prices (a) support = a resistance price as a high reject on 11/22/2018 and eventually breaks as resistance-shifts to support on our 1/23/2019 trading day (b) resistance1 or inside price [that outside extreme is the price discussed above] = double top high  that again sends price below the support point
    • With this discussion of these multi-week left side prices, note the price action and/or range break higher that kept these prices on the chart – including how trade1 as a buy is filtered for momentum -vs- a buy 3 bricks from resistance
  • Renko trade1 = price envelope reverse sell underneath the resistance1 price + midline reject with mex flow-fast momentum hook addon – 1 partial profit on each trade, which is managed by (a) full brick close above the midline that exits the addon (b) price envelope reverse buy that exits the initial short and gives the trade2 buy
  • Renko trade2 price envelope reverse goes to partial1 and a price filtered price extreme reverse sell at the resistance1 price testing as support
    • This is followed by a full brick close below the midline BUT there is no addon to exit and thus the trade would be held for a price envelope reverse – in this case, there is a swing resumption instead of a price envelope reverse sell and the Renko buy remains open

Renko British Pound Day Trading Strategies

Renko Day Trading Video463:

  • Renko British pound trading prices left of when start trading and how long prices have remained relevant (a) support = double bottom 3 days left and remained price relevant for the 2 previous days (b) centerline = 2 days previous consolidation low – you will remember the video discussion for this area where there were actually 2 center prices and one was removed for lack of price action (c) resistance = 2 days previous high
    • Discussion across the chart of the price action for the 3 prices especially for resistance which did break out to a higher range but then broke as support and shifted back to resistance again
  • When Renko trading began there had just been a price envelope reverse sell that went through the centerline and to a price extreme reverse at support – if trading had begun earlier was the sell tradeable?
    • No, the centerline was a breakout only before mex crossed and there was no continuation trade [like a price reject with mex flow] after the breakout – this is in no way a price failure breakout and a chart read would suggest the potential for a centerline double reject with higher momentum
    • Discussion of the first trade of the day having to be a price extreme reverse buy -vs- the trade being a directional trade like a price envelope reverse or a midline reject with mex flow-fast momentum hook
  • Renko price extreme reverse buy + price envelope reverse addon went to a price extreme reverse sell, first giving a +4+8+12 exit on strength and a +4+8+9 price extreme reverse sell
    • The next 2 Renko trades were the price extreme reverse sell and then later a price envelope reverse sell [without ever having a buy setup] – these were both single trades [no addons] and losses without partials, but the losses were well covered by the gains from the buy
  • Discussion of a Renko swing resumption and a buy after the price envelope reverse sell that additionally had the breakout potential of breaking through a previous price momentum divergence high
    • The price swing resumption broke out through resistance to a price extreme reverse [rejecting another left-right price that was already on the chart] – there were 2 partials first and the breakout ended too fast to sell the price extreme reverse or even exit the long with the last 4 bricks in less than 2 seconds

Renko British Pound Day Trading Strategies

Renko Day Trading Video462:

  • British pound Renko trading starting from the end of the previous video, long a price swing resumption – what does this trade setup refer to?
    • I had been long a price envelope reverse that was stopped out for a 4 brick loss but there was never a sell since the price envelope sell was filtered for momentum, which was followed by another price envelope reverse buy and back long – this is a resumption of the previous buy and direction
  • Discussion of trendlines, first referring to a line connecting the highs of 2 midline rejects as part of drawing a price failure breakout setup – this is absolutely not a trendline connecting 2 bricks of a pattern inside of a swing
    • Further discussion of the slope for a trendline and not being too vertical or too horizontal but more moderate – and also whether a line connecting the low and 2 higher low points is a trendline
  • Discussion of price extreme reverse brick count for entry as a trade, along with using the ‘setup’ for management when there is no trade that can be done because of filtering
    • Begin your count with a price envelope reverse or the last Renko trade setup [regardless of whether the trade can actually be done – in this case, the count begins on the brick after the actual envelope brick reverse, where the brick highs ‘square’ off and where mex crosses
    • The open Renko long trade goes to a price extreme reverse high that is filtered for the support price underneath – I already had 2 partial profits [there was no Renko addon that had been done], but if not I would have taken partial2 on the price extreme reverse regardless that it would only be 3 bricks
      • This is a function of the risk-reward of a price extreme reverse-momentum extreme reverse breaking support and the midline and getting a 4 brick giveback followed by a 5 brick giveback if there is a price envelope reverse
  • Renko price envelope reverse long followed by a midline reject with mex flow-fast momentum hook addon – note how the trendline from the lows extended across the chart and also held the previous Renko sell and added to the buy reverse as a diagonal support hold

Renko British Pound Day Trading Strategies

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 British Pound Day Trading Strategies

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 British Pound Day Trading Strategies

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 British Pound Day Trading Strategies

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 British Pound Day Trading Strategies

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 Chart Day Trading Training

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 Chart Day Trading Training

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

Renko Chart Day Trading Training

 

Be the first to comment

Leave a Reply

Your email address will not be published.


*