Renko Chart Trading Method Consistency And Repetition

In this renko chart trading strategy video, we are going to focus on the effectiveness of using these charts for a trading method.  A primary reason for this is due to the way that the renko brick patterns and trade setups consistently repeat and react in the same way.

Some of the trading method concepts that will be discussed in this video include:

  • Repetition and consistency of setups and outcome
  • Renko chart base setup simplicity
  • Renko chart base setup filtering
  • Tick chart confirmation and most effective for filtering

Renko Chart Trading Method Consistency And Repetition

The charts you are looking at show a renko brick1 chart and a price tick chart – let’s mark some of the key areas on the 2 charts.

What is method repetition and consistency?

  • Note that I said method and not trading
  • The same patterns repeat
  • The same chart information repeats
  • The same way of using that information repeats
  • The same trade setups repeat
    • Your chart information tells you whether to take the trade or whether there is a filter to avoid the trade
    • The trade filters are consistently used the same way
    • And although they are not always necessary – there consistent use increases profitability, regardless that there will be some missed winning trades
    • And the same price movement and continuation consistently repeats
      • Trade a price failure with mex flow into left side diagonal breakout potential – and you consistently get price ease of movement that is far enough for a trade partial profit
      • Trade inside of consolidation or a consolidation breakout of a swing extreme – and you consistently get no price movement and a losing trade

What is trading against tick chart – it means trading against key filtering information from the tick chart

  • Is your trade against a left-right price – especially
    • Into a double top or double bottom
    • Into a shift line
    • Counter momentum
      • Against mex flow = against momentum strength
      • Against momentum extreme = into a pmd
  • Against market conditions = trading inside consolidation
  • The tick chart is not intended to show you price bar lower highs or higher lows in a swing that are otherwise meaningless – those are not relevant price points

By combining the renko chart base setup simplicity, with the key price and momentum information from the tick chart, trading method consistency can be increased.