Customizing Renko indicators to work as day trading strategies in a method vs. trying to use ‘canned’ indicators from your charting program.
Develop your Renko indicators to work with the charts you have identified to have the best price moves while avoiding consolidation. Also, combine your indicators into trade setups, in contrast to mechanically trading indicator signals.
Renko day trading uses a unique approach, the focus on price movement instead of time or volume. When combined with custom momentum indicators and strategies, traders have tools for capturing multiple shorter term price swings.
Before day trading with Renko charts it’s important to learn the Renko basics. You also want to understand different disadvantages that are written about these charts that just aren’t the case.
Have you traded using Renko charts? These charts are made of bricks of the same size instead of using a timeframe or tick volume to make bars. The uniformity of these bricks line up at 45-degree angles can remove chart ‘noise’ seen in the different sizes and overlapping bars of other charts. This adds clarity to reading the chart.
This additional clearness of the Renko charts made trade setups more definable and easier to see for use in a trading method. And after many years of using tick charts, a Renko chart trading method was developed to use instead.
Renko chart momentum trading strategies using indicators and trade setups based on momentum leading price direction and continuation. These trade setups show where momentum reverses and begins a new trading swing, along with momentum continuation on price retraces for swing addon trades.
Price and momentum extremes and divergences are then used to identify where the direction will end. These chart areas are often starting points for swing reversal trade setups
Learn about Renko chart trading and a method of price and momentum continuation strategies.
Renko chart trading is a method that uses price charts instead of traditional bars or candlesticks. A price chart is one that does not use time or volume. The Renko price chart forms bricks based on a constant setting size.
Therefore, all Renko bricks on the chart are the same size and minor moves or ones smaller than the setting size are not seen on the completed charts. Plotting bars or candlesticks only as a function of a time interval are eliminated.
Compared to traditional charts, price charts can give a clearer read of price movement, which is a benefit of Renko chart trading.
Renko Chart Trading: Renko Charts Are Clearer Than Candlestick Charts
Along with Renko trading indicators, trade setups, and trade management, also learn Renko trade filters that are used to avoid trading at price support or resistance, inside of consolidation, or at price momentum extremes.
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