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.
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.
Renko trading prices strategies and chart identification. We will discuss Renko price significance as we move across a chart, along with determining price relevance for continuing the use of left side trading prices -vs- changing them to new prices that have become more significant.
Using Renko chart trading price lines is an important part of our trading method. This is because the relevant price lines that are support or resistance tend to hold, so we use them as a trade setup filter and avoid trading into them. However, the diagonal prices from trend lines and chart patterns tend to breakout and thus make good trade setup components.
By combining our Renko indicator trading strategies, with our method trade setup filters, we can avoid low odds trades. In turn, this leads to an increase in the trading strategies and method profits over what they otherwise would be.