In this Renko trading prices article and video, I am going to discuss the significance of Renko prices to our charts, along with using them in our trading strategies. And then after identifying the Renko prices that will be used in the range we are trading, we will continue to move the chart to the right and determine the following:
- Do these Renko trading prices remain relevant for trading
- If a price is not still relevant how should we adjust the chart for new Renko prices
- Are there any additional prices that should be added to the chart
As you know, chart price is a critical aspect for trading our Renko strategies:
- You know that price is used as a trading filter based on any possible trade setup. we may have and how much room we have – if there aren’t at least 3 Renko bricks of trading room then we don’t take the trade
- You have also seen how price can be part of a trade setup, which is a very important part of a Renko trade setup – because if you get a resistance or support price that fails to be support or resistance any longer, the trading through those price points is likely going to give you continuation and a profitable trade
In this capacity, using trading prices is quite simple. But selecting the Renko trading prices and determining their continued significance is in many different situations not so simple.
Renko Trading Prices And Related Trading
This is why I try to talk about the trading chart prices in most every Renko training video, because if there is a price that I know or think might be difficult to locate then I want to discuss it. To the extent that is possible, I would like us all to have the same basic trading prices marked on our charts.
When you look at this trading chart, you should be able to see two gray lines at the bottom of the chart. From this chart section, you have no idea why they’re on the chart but this will be discussed further.
The 2 Renko trading prices identified by the purple lines should be obvious:
- The top purple line to the left of that vertical line where the session break occurs was the daily low. And then you can see that this price line breaks to a lower low, which shifts this Renko trading price to resistance.
The bottom price line, after we get a chart reverse -vs- another low price in a sell swing, then becomes new chart support. We now have identified 2 significant Renko prices and we will have to trade our setups according to the room to these prices.
Renko Chart Trading Inside Of Support And Resistance
- Orange circle1: Price envelope reverse and a Renko setup that would be traded. But this trade would be filtered for price resistance and you can see the reaction and why we use price filters – resistance rejects and a losing trade was avoided
- Yellow circle: Price envelope reverse with trading room to support. Unlike the buy that was filtered, this setup would be traded based on the room to the Renko support price
- Orange circle2: Midline reject with slow momentum flow and a fast momentum hook. This is a Renko addon setup that has 3 bricks of trading room to support, so this is not a filtered trade.
- But based on the overall sell direction, you might make the decision not to do an addon trade with only 3 bricks of room to the Renko support price that is also the daily low – you might just want to get your 4 brick partial profit at support and trail the remaining short contracts
So, the 2 purple Renko trading prices were clear as was the related traded. And in most situations, we can locate and identify support and resistance price like these. What becomes more difficult is the decision to keep these price lines on the chart as we continue trading.
What becomes more difficult is the decision to keep these price lines on the chart as we continue trading. We know that the top purple line is Renko resistance, but what if the bottom line breaks and we go to a lower low – what happens to the price line when the lower low price becomes support and what was support becomes an inside price to the Renko chart range?
Renko Trading Prices Identification And Significance Video
We have moved across the Renko trading chart to the yellow circle price envelope reverse buy – what has happened to our left side Renko trading prices:
- We have never traded as high as the top gray line, so it remains resistance
- The bottom gray line trading price is the new chart low, so it becomes support
- But what about the previous support price, which is now the middle gray line – has this price remained chart relevant where it should remain on the Renko chart as a trading price, or should this price be removed from the Renko chart?
- And what about the purple price line, should it be added to the trading chart?
- This price isn’t a new high or the swing high into a lower price low, however, it is the high price after a news release
The Renko trading price video will discuss the movement from chart1 to chart2, along with the questions asked above.
And then in another video, I will discuss our Renko trading strategies to the right of the yellow circle. We will continue to talk about trading price identification and continued relevance, along with more discussion on Renko price pattern breakouts.
Click link to watch video: Renko Chart Trading Price