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Continuing Updated Renko Trading Strategy
Incorporating a timeframe into the Renko Strategy
The Renko charts on Trading view with the plan that I'm enrolled in will allow for a Renko chart's timeframe from 1 minute to 1 day or longer. Although Renko charts are supposed to factor out time, a timeframe is still used to 'set' the block which is an important concept to the trading strategy
When publishing an initial idea in TV, you have to have a timeframe of at least 15 minutes. This isn't what I typically use but do so to accommodate TV. On individual charts, I will use a TF between 5-11 minutes depending on the market's volatility. If the timeframe is set to a small number, the Renko block will be set sooner and could lead to churn in the strategy while having a timeframe set to a larger number will delay the setting of the block which can lead to missed entries or exits.
Using a combo of larger block sizes and higher timeframes of 5-11 minutes have seemed to provide good setups for the option trading strategy I use (buying Puts/Calls simple strategy based on market direction)
The web has good articles on discovering patterns and levels of resistance/support using Renko charts. Another important concept with good discussions on the web is pivot points (https://pivotboss.com/wp-content/uploads/2017/09/Secrets-of-a-Pivot-Boss-by-Frank-Ochoa.pdf)
My current strategy is to combine the current configurations of Renko charts with their weekly counterparts with yearly pivots (traditional and camarilla). In the book on Pivot Points (see pdf), There is an excellent chapter on pivot point analysis and % of probabilities in price action against the levels. I believe that incorporating these yearly pivots side-by-side and the Renko charts and their indicators plus the Linear Regression indicators provide a good foundation for an option trading strategy of simple buying of puts/calls.
Referring to the btcusd chart, I've overlayed the 2022 traditional s1 and the camarilla s4 on the Renko chart. Looking at the DEMA 12/20 averages, they're currently split in a bullish position (12 over 20). The 12-May low tested the 2022 S1 level which coincided with the 2nd STD low. This action could be setting up a support level the market could push off.
I don't trade btcusd but track it because the market moves 24x7 which provides a lot of training material to learn for other markets.
[Future section include concept of opening range of the year and the volume area of the previous year(s)]
The Renko charts on Trading view with the plan that I'm enrolled in will allow for a Renko chart's timeframe from 1 minute to 1 day or longer. Although Renko charts are supposed to factor out time, a timeframe is still used to 'set' the block which is an important concept to the trading strategy
When publishing an initial idea in TV, you have to have a timeframe of at least 15 minutes. This isn't what I typically use but do so to accommodate TV. On individual charts, I will use a TF between 5-11 minutes depending on the market's volatility. If the timeframe is set to a small number, the Renko block will be set sooner and could lead to churn in the strategy while having a timeframe set to a larger number will delay the setting of the block which can lead to missed entries or exits.
Using a combo of larger block sizes and higher timeframes of 5-11 minutes have seemed to provide good setups for the option trading strategy I use (buying Puts/Calls simple strategy based on market direction)
The web has good articles on discovering patterns and levels of resistance/support using Renko charts. Another important concept with good discussions on the web is pivot points (https://pivotboss.com/wp-content/uploads/2017/09/Secrets-of-a-Pivot-Boss-by-Frank-Ochoa.pdf)
My current strategy is to combine the current configurations of Renko charts with their weekly counterparts with yearly pivots (traditional and camarilla). In the book on Pivot Points (see pdf), There is an excellent chapter on pivot point analysis and % of probabilities in price action against the levels. I believe that incorporating these yearly pivots side-by-side and the Renko charts and their indicators plus the Linear Regression indicators provide a good foundation for an option trading strategy of simple buying of puts/calls.
Referring to the btcusd chart, I've overlayed the 2022 traditional s1 and the camarilla s4 on the Renko chart. Looking at the DEMA 12/20 averages, they're currently split in a bullish position (12 over 20). The 12-May low tested the 2022 S1 level which coincided with the 2nd STD low. This action could be setting up a support level the market could push off.
I don't trade btcusd but track it because the market moves 24x7 which provides a lot of training material to learn for other markets.
[Future section include concept of opening range of the year and the volume area of the previous year(s)]
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