Step by step approach for learning Renko chart trading, beginning with the basics of the Renko method and system. Then start practicing trading the Renko system with the objective of advancing to the trading of the full Renko method.
Our Renko trading strategies can be traded as a trading system or method, but there are trade-offs involved. The Renko system is easier to learn but once trade setup filtering is understood, the Renko method will be able to be traded more profitably.
Our Renko day trading system didn’t originally include the price envelope reverse trade setup, because of losses that would be incurred inside of consolidation. But that setup will now be traded when it is through the breakout potential of a previous swing diagonal that is 15 ticks or greater.
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.
When comparing a Renko trading system and Renko trading method, you will find significant differences. Our Renko method allows for trade filtering to avoid low odds trades, along with profit expansion strategies. A Renko system would instead take all trades mechanically regardless of conditions and also take the same size profit mechanically too, which is why I would say that the best Renko trading system is a Renko method.