Showing posts with label Renko Trading Strategies. Show all posts
Showing posts with label Renko Trading Strategies. Show all posts

Monday, August 3, 2015

How To Build a Forex RenkoTrading Strategy to Yield 40 Pips Every Day

As traders, we all want to have a positive cash flow, we all want to make enough money to pay for our time and work, here is a Forex Renko Trading Strategy that will help to reach that goal.

What we need is a consistent strategy, a time frame in which we are going to be at the screen to do our trading and the discipline to stick at it until we succeed.

We have to know, also, that we can not get every move in the market place. It is folly to chase every move or every trend. We can only get the moves that our strategy will point out.

I have a Forex Renko Trading Strategy method to help us to achieve a reasonable amount of profits daily.

I will lay it out in simple form, hopefully so that people can understand it and see the simplicity and be able to execute successfully.

For this exercise we will be using Metatrader 4 and setting up some Renko charts.

I will briefly cover how to get the Renko charts built.

First we will open one minute charts for several currency pairs, the majors, to start with. Of course you have your personal preferences as to which pairs you like and feel free to choose. In addition to those, open a one minute chart for the Dax index.

On to each of those charts place the EA Renko 3.4 and set the bar size to 10 pips, except for the DAX which could be about 50 pips.

This action will build an offline chart for each of those instruments, open those and shrink the one minute charts.

Now, on the M2 offline charts. for each one you are going to want to change each to a 'line' chart' and go into the properties for each chart and change the 'line'  to have no color...

Now add the Heiken Ashi bars to each chart. and now we have our work charts almost set up. You will have 5 or 8 charts ready to go.

The next step is to get the indicators on the chart, the ones we are going to use to detect our entries.

Configure your chart the same as the chart in this post, the CCI SlingShot;

You need the two CCI in the same lower chart. Have a look at that post and be sure to grasp that simple method.

Do the same for all of your offline charts, perhaps make a template after the first one and apply that template to all the rest..

I think you are seeing how this system is really simple.. We are going to trade slingshots, they happen frequently and they are so easy to spot on a chart.

Now that we have the charts set up, one more thing to do.

Have a look at this post and review the 200 Trendline Break entry.  Study this one carefully.

Get used to spotting this one as it is the entry that will help you with  finding a trend change.

So far, you have a trend change entry and also a continuation move entry.... in other words, when something is moving, you can capture every part of the move, and if you are careful and disciplined you are going to do very well on each move on each pair.

One more thing we have to study before we have this concept.

Have a look at this post about CCI Divergence. Study the diagram and learn to mark this divergence both long and short. This is the warning for a pending trend change in many cases.

Now you have two patterns to enter with and a divergence tool. and nice clean charts.

You can shrink the charts down a bit and probably can watch  quite a few charts ion this way.

While the title of this article mentions 40 pips every day, I know from personal experience that this setup will give you a lot more than 40, especially if you are watching the DAX.

I am not sure if there is a simpler trading system than this, certainly the trades show themselves clearly and you have the indicator to give you precise entries.

I caution you against adding much to the charts, perhaps a 50 moving average, other than that leave the chart clean. 

Chart clutter causes confusion and will help to make mistakes.

Please be sure to use a stop loss with every entry, that is most important!

Enjoy!


Renko Trading Strategies (3)

I want to demonstrate the CCI Slingshot as a Renko Trading Strategy that can be employed on a daily basis on most charts.

This one will require two indicators to make it work. First we will place a CCI14 on the chart and then overlay that with a CCI6 (the dotted line)

Note that in this example the CCI 14 has approached the 0 line before easing back while the CCI6 has approached the 100 level. It has to be this way, if the CCI6 does not get high enough the trade could be  a bad entry causing a loss.

This pattern is actually a divergence between the two indicators.

See the example here




You can see that the CCI Slingshot is actually a continuation move on the trend.

This entry can be used to initiate a trade or to add to a position.

Again, all that is needed for this is two CCI indicators overlaied in a lower chart.

This example is a short pattern



Notice there is a similar pattern to the left of the one with the arrow. This one does not qualify as a CCI Slingshot because the CCI14 rose far above the zero line. That is an important aspect, the CCI14 has to rise to close to the zero line......

This Renko chart has 20 pip bars, you can see that the slingshot entries can be quite lucrative.

Of course it takes practice to see these patterns on the indicator, all entries must be 'With trend'.

If you have been looking at the posts about the Renko charts on this blog you are seeing how simple it can be to trade with Renko Bars.


There are several other Renko Trading Strategies on this blog, hopefully you will have a chance to examine those.

Renko Trading Strategies (2)

The 200 Trendline Break is another of those Renko Trading Strategies that is relatively simple to execute and appears on the charts of almost every instrument, be it forex, stocks or futures.

This trade involves using only the CCI indicator and and a trend line.

What is important is that the CCI has reached approximately 200 level from where we can draw the trend line to intersect the CCI.

Notice this example:




You can see that the line was drawn from the top of the CCI, which is close to the 200 line, and intersects where there is a bump on the CCI moving up.. When you look up at the price bars you will see that the bar is a valid entry point and that there is a relatively good move upwards.

This one will take some practice to recognize and master, however the time is well worth it as this  pattern gives some excellent profits.

The 200 Trendline Break is a very simple and accurate scalping strategy

By the way, this chart is made of 20 pip Renko Bars which is my own preference.  So,me people prefer smaller bars and some people prefer much larger bars.

Of course this trade can be made with short trades as well as long trades, I have only illustrated a long entry on this chart.

Again, this is a simple concept requiring only one indicator.

Please look elsewhere on this blog to see other Renko Trading Strategies.


Renko Trading Strategies (1)

CCI Divergence is one of those Renko Trading strategies that is simple and can be used often on most days as the pattern appears on most charts.


In this  example  the price is making lower lows while the oscillator is making higher lows and then all of a sudden the trend reverses.




As you can see, this is a simple chart with only one indicator, the CCI indicator. The Renko bars smooth the chop so that the pattern is easily seen on the chart

Of course a trader will use stop loss as with any other trade in case there is a reversal for some reason.

The CCI or Commodity Channel Index, indicator is found in most charting packages or can be located on the internet.

Look elsewhere on this blog for similar Renko Trading Strategies.