When Renko system trade setup trading we use a combination of multiple setup components instead of single components like an indicator or pattern break trigger only. By requiring multiple component trade setup confirmation, we are able to avoid many low odds for profit trading conditions.
The Renko system trades setups will be taken from our Renko method with the exception of the price envelope reverse because it would not be profitable day trading without filtering. The 2 setups that will be mechanically system traded will be the midline reject and price extreme reverse and they will use the ‘base’ method setup components.
Trading Renko chart selective trade setups, instead of Renko base method setups, will increase win:loss and trade profitability during periods that are identified as having low odds for trading.
By adding Renko chart trading strategies, like price action and trend line support or resistance, along with chart pattern and price failure trade setups, we can further increase the profitability of our ‘core’ Renko trading method.