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.
There are 3 Renko chart bar types that can be used for day trading: (1) standard bars (2) standard bars with price wicks (3) custom bars with a mean price offset. This article will discuss the different Renko chart bars and whether there is any reason to switch from the standard Renko trading charts we currently use to day trade.
Adding Renko chart trading strategies, like price action and trend line support or resistance, along with chart pattern and price failure trade setups, to our ‘base’ Renko trading method.
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