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.
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.
When I am asked what is the best Renko trading indicator, I answer that I don’t think there is a best single indicator. Instead choose a combination of related Renko indicators that work together and can be combined into a trade setup that gives price continuation.
Using a combination of Renko day trading indicators for your trade setups, instead of trying to find a single best trading indicator, will lead to more effective and profitable trading. I really haven’t seen a best indicator that could be traded mechanically as a system.
Why Start Day Trading Renko Charts?
After many years of day trading tick bar charts, the decision to switch to day trading Renko charts was based on the clarity of the Renko bricks fixed price moves -vs- the irregular and random size of tick bars.
Additionally, besides the Renko charts method being simpler to trade than tick bar charts, it has also been clearer to teach other traders.