BitcoinEducation
Continuing Updated Renko Trading Strategy
Renko:
A simple strategy using the DEMA 12/20 averages
When the 12 crosses up over the 20: buy
When the 12 crosses down over the 20: sell
Extended wicks. When setting up the Renko charts, check the box to enable the wick on the Renko block. Wicks can become an additional trigger to look for in addition to the DEMA average cross.
Using the 20 MA with the 9WMA overlay. Only look for longs when the 20MA is above its 9WMA and look for shorts when the 20MA is below its 9WMA. Crosses of DEMA and MA/WMA that coincide with each other may add confidence to the position
I use a larger block size on the Renko for markets because I only buy Puts/Calls based on the direction the market will take. Using a larger block size like this on trading the actual market would lead to large drawdowns.
Adding the Linear Regression indicator.
With the combination of larger block size Renko and the Linear Regression indicator, I use a 45-block lookback period. Depending on the volatility of the market, this could be enough to cover the past 10-12 months which should be sufficient to project trend. Combine the boundaries of the 3 STDs on the chart for Linear Regression and the DEMA averages along with the wicks to identify possible triggers to enter trades.
[Add detail on the Combined Stoch, CCI, and DMI]
A simple strategy using the DEMA 12/20 averages
When the 12 crosses up over the 20: buy
When the 12 crosses down over the 20: sell
Extended wicks. When setting up the Renko charts, check the box to enable the wick on the Renko block. Wicks can become an additional trigger to look for in addition to the DEMA average cross.
Using the 20 MA with the 9WMA overlay. Only look for longs when the 20MA is above its 9WMA and look for shorts when the 20MA is below its 9WMA. Crosses of DEMA and MA/WMA that coincide with each other may add confidence to the position
I use a larger block size on the Renko for markets because I only buy Puts/Calls based on the direction the market will take. Using a larger block size like this on trading the actual market would lead to large drawdowns.
Adding the Linear Regression indicator.
With the combination of larger block size Renko and the Linear Regression indicator, I use a 45-block lookback period. Depending on the volatility of the market, this could be enough to cover the past 10-12 months which should be sufficient to project trend. Combine the boundaries of the 3 STDs on the chart for Linear Regression and the DEMA averages along with the wicks to identify possible triggers to enter trades.
[Add detail on the Combined Stoch, CCI, and DMI]
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.