Renko trading prices are support and resistance. The price action and reaction at these prices make them significant since these chart areas tend to hold and become the starting point for swing reverses.
As a result, the Renko trading method filters trades at these prices. Or until there is a Renko breakout setup, where the trading price fails as support or resistance and can lead to swing continuation.
The Renko trading method has been developed with chart reading strategies for reading price movement. There are 3 trading indicators and trade setups that the trading method uses. Note: this is a trading method and not a mechanical trading system.
The Renko trading method also uses trade filters that are designed to avoid trades that are into price support or resistance, inside of consolidation, or counter momentum. The use of trade filters differentiates a method from a system.
Renko chart day trading training videos, discussing: (1) Renko method and trading strategies (2) Renko trade management (3) Renko trade filters used to show when entering a trade would be into price support or resistance and/or trading against price momentum.
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 consistently.
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.
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