Emini Dow Renko Chart Day Trading Review 2-5

In this renko chart trading video, I am going to do an emini dow futures setup and day trade review for 2-5-2014, beginning at 5:00ct – and a trading period that is in a side ways price range, where the renko chart is difficult to read.

So, one of the things that I especially want to discuss in this video is renko chart trading during price ranges, and how much additional renko chart and trade setup clarity will come from also using a price bar chart.

Renko Chart During Sideways Range

Emini Dow 180 Tick Day Trading Chart

You are looking at the emini dow 180 tick day trading chart – the last tick bar on the chart is 7:15ct.  Let’s start here with a chart read, before going to the renko trading chart and looking at trade setups.

Emini Dow 180 Tick Chart During A Price Range

  • You can see how we are in a range between 15354 and 15294, with the blue line as a center line
    • It’s a price line that has shown some relevance through price action
    • The 1 trade I have tried in this area was the red dot sell 15332
      • It’s a pmd high-pmd counterpoint break2 with mex flow that would include a failure break of the blue line
      • There was also a sync renko setup at the same time
      • I watched the 15305 area for a stall-reject – but the 15294 price support was my target
        • I don’t really like these horizontal trades back into previous consolidation, because they tend to have trouble getting through – but with 27 to 38 points of profit targets, I took the trade
        • NOTE:  this is not the same as trading inside of consolidation – if that had been the situation I would not have taken the trade
    • Price made it to 15296 – so I missed my target and ended up with a 15304 partial on a red-green renko brick at the low and partial 2 was 15310 on another green brick
      • Understand that I am reacting to missing a double bottom low as momentum was going extreme – probably a good time 2 have taken a double partial
      • You can also see the difficulties with trade management in these kinds of trading periods – there is no price that should hold as resistance on a retrace, until the blue line and that is a very big giveback
        • I went flat at 15314 on the renko midline cross
        • We are now back to the blue line and still in sell mode, but look at mex starting to cross and ttm right at the 0 line – this is what I have meant when I have said that an initial reverse is imminent

Emini Dow Renko Day Trading Chart

Here is the renko day trading chart that syncs with the 180 tick chart.

Emini Dow Renko Day Trading Chart During Price Range

  • You can see the yellow dot was the sell and we really did move far enough for partial1 – but with the targets I was using and mex still flowing, it would have been random for me to have done so
    • Which clearly sucked with the next renko move
    • Renko chart trading only and the trade would be flat – renko chart and 180 tick sync trading and I went ahead and held below initial risk and with the 180 tick chart
    • The blue squares and the blue circle was the partials and trade exit
    • The yellow circle may be a 3 brick pattern with mex flow, but it’s definitely not a trade setup – not right into resistance and against the 180 tick chart
    • Question:  Do you see the green-red brick with mex flow midline test as a buy alert?
      • Yes – but there is no way to take the trade when we know that (1) the 180 tick is in sell mode [this is before the end of the chart we looked at (2) there would be no profit target using the 15330 area as resistance

Emini Dow Renko Day Trading Chart

  • And the yellow circle is a terrific setup with the midline-reject triple break, but I still can’t take it if I am using the 15330 area as resistance
  • Question:  Do you see the red-green brick with mex flow midline test as a sell alert – or is this the same problem as the buy and there is no profit target
    • Sell 15315 to the 15294 [don’t ignore 15296 and that previous test low] target is 21 points and fine for a profit target
  • Sell triggers with the reversal bar – short 15315
  • Blue line initial risk area
    • No, I didn’t put the line in the wrong place and it should be 15330
    • I would never use the exact price – but what I want to do is give the lower high into the trade some room
    • Be sure to look at the 180t for this price area and know the actual price
  • Initial risk holds and this time there was price continuation down and to the price target
    • I am ready to take the partial – but when there is mex flow at the target price [momentum should be synched with the 180 tick chart] I want to try and extend the partial and fill it on the break
    • Partial1 15288

At the end of the emini dow renko chart, I am short with 1 partial taken and am ready to take the 2nd partial – right at this point I want to give it a chance to reject the midline area and become a pmd failure and another continuation ‘push’ down.

I want the 15294 price area to shift to resistance, which would sync with the trailing price envelope.  The blue renko chart price line 15302 is not where I would hold the trade to.

It’s a price that I want to be aware of as shifting to resistance now, and evaluating a renko buy setup if there is one, in terms of the room to 15302 for getting a buy partial profit.