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 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

 

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