Scalper's Forum
- Thread starter trader111
- Start date
Now that I have figured out how to upload images......I am posting a Renko chart from yesterday for Reliance...
You see, how easy "it looks"? Why can't a monkey buy the green and sell the red?
No doji. No Hanging Man, No inverted hammer, no moving average cross overs, no toby crabel's break out system, no statistics or econometrics. no gann or elliott wave. No astrology or analysts recommendations.
1) A clear mind
2) Strict Discipline
3) 100% Confidence to buy the green and sell the red
Honestly, do i see some miraculous pattern here? or is this some kind of 'maya' or an illusion? Am i suffering from Cognitive Dissonance?
Just the Renko
You see, how easy "it looks"? Why can't a monkey buy the green and sell the red?
No doji. No Hanging Man, No inverted hammer, no moving average cross overs, no toby crabel's break out system, no statistics or econometrics. no gann or elliott wave. No astrology or analysts recommendations.
1) A clear mind
2) Strict Discipline
3) 100% Confidence to buy the green and sell the red
Honestly, do i see some miraculous pattern here? or is this some kind of 'maya' or an illusion? Am i suffering from Cognitive Dissonance?
Just the Renko
Attachments
lmao..............dude you r confused.......
Can't u say some thing like, "yes, i see this pattern", "no this is not any pattern and i don't see any pattern on your Renko charts?
"this is how i use my charts, and here is an example"
Except for Trader111, no one is contributing enough.
Trederwiz,
i have tried to understand the concepts of renko charts and i think they can offer tremendous entries in a TRENDING market and the exits are also simple, it's more like a dummy trading.
They are not ideal for scalping though, thy are good for swing trading.
But, in a range bound market, they will fail. i am actually trying to find some source from where i can get these because if the entries are taken based on my own analysis, and the exits are left on renkos, they can offer an emotion free trade............
I can see the reliance chart u posted, post some more charts please.........
watch the thread, how to post chart in announcements section.
bye..........
i have tried to understand the concepts of renko charts and i think they can offer tremendous entries in a TRENDING market and the exits are also simple, it's more like a dummy trading.
They are not ideal for scalping though, thy are good for swing trading.
But, in a range bound market, they will fail. i am actually trying to find some source from where i can get these because if the entries are taken based on my own analysis, and the exits are left on renkos, they can offer an emotion free trade............
I can see the reliance chart u posted, post some more charts please.........
watch the thread, how to post chart in announcements section.
bye..........
U
Thanks to every one. My trading logic is very simple (but not easy):
Using a Renko Charts and catching the trend. I am not sure if any one is using Renko Charts or have access to it on your charting program. You may google "Renko Charts" and try to read it if you are not familiar with it. It will take you just 5 minutes max..... In a nutshell, Renko charts show you the trend in bricks. If the brick is hollow or empty (green), it is advisable to go long and if this Renko is filled with red color then you would go short (at least, thats what the text books say).
This is my KISS (Keep it Simple Stupid). This is my strategy. There is no logic here. In my opinion, a day trader doesn't need any logic. If you are Warren Buffett or Rakesh Jhunjhunwala, then you need that logic factor. Here my logic is to stay with the trend. Thats it. A candlestick chart doesn't help me stay with the trend. But a renko does. I will try to post a renko chart (after I figure out how to post it on traderji).
My logic is this:
A day trader/scalper needs to be in a highly volatile stock to catch those moves.
This Renko chart shows these trends. Try it and see for yourself. The candlesticks can confuse you. Especially when you look at a 1 minute candlestick or even the tick charts, every one of these charts would tell you one different story (and least to me) and every time I look at this candle, i get so confused that I don't know what to do. This is "trader's block" syndrome. I mean, a 1 minute candle would say long, but a 3 minute candle would say short and a 5 minute candle would show you doji. etc. and so forth....
Not with this Renko. Looking at a renko chart for say, reliance, it looks so easy. it looks so simple. my thinking is that even a dumb monkey can be trained to buy when there is this hollow green box and sell or go short if there is a red box. The problem with this renko chart (or with any trend following method) is that u get hit pretty bad if the market is choppy or if the market is in a range. So this Renko would not work for a stock that is trading in a range. But then, no body knows in real time whether if a stock is going to "break out" or if it is "in a range". The best you can do is look at the stock's trading history..which is what I did.
The mother (Reliance) is very very volatile every day. I guess one day she moves and the next day she has decided to just rest peacefully.... So here is my logic: use a Renko charting technique to follow "the mother" to help you stay with the trend. I can show you how simple and easy it looks on a chart after i figure out how to upload it. Renko can really help u stay away from the noise factor.
The bad thing about Renko is that it is LAGGING. If you say for example use a 5 minute Renko chart, you would get some boxes after 5 minutes. The current trading price, may not be even near those boxes (at least for "the mother"). To me this is the "noise". So i convinced myself "to have those balls of steel" that every trader needs to have and just follow the signals that my renko tells me. But then, i just realized that i have balls of plastic and can't follow my own simple basic rules some times....
no brains involved here. just reacting i.e. if the box is green and empty stay long and if the box is read and filled then go short. You may also combine this with the usual "hanging man candle" or an "inverted candle". but then, u may end up getting the trader's block syndrome and can't pull the trigger due to confusion or analysis paralysis!
For those of you who have any charting software, just try renko on Reliance (say 5 minute chart) and see for yourself. How easy does it look? But i guess this is would be analogous to watching Sampras or Tiger woods playing tennis or golf and saying, "hey, that was so easy"!
Rajesh
Using a Renko Charts and catching the trend. I am not sure if any one is using Renko Charts or have access to it on your charting program. You may google "Renko Charts" and try to read it if you are not familiar with it. It will take you just 5 minutes max..... In a nutshell, Renko charts show you the trend in bricks. If the brick is hollow or empty (green), it is advisable to go long and if this Renko is filled with red color then you would go short (at least, thats what the text books say).
This is my KISS (Keep it Simple Stupid). This is my strategy. There is no logic here. In my opinion, a day trader doesn't need any logic. If you are Warren Buffett or Rakesh Jhunjhunwala, then you need that logic factor. Here my logic is to stay with the trend. Thats it. A candlestick chart doesn't help me stay with the trend. But a renko does. I will try to post a renko chart (after I figure out how to post it on traderji).
My logic is this:
A day trader/scalper needs to be in a highly volatile stock to catch those moves.
This Renko chart shows these trends. Try it and see for yourself. The candlesticks can confuse you. Especially when you look at a 1 minute candlestick or even the tick charts, every one of these charts would tell you one different story (and least to me) and every time I look at this candle, i get so confused that I don't know what to do. This is "trader's block" syndrome. I mean, a 1 minute candle would say long, but a 3 minute candle would say short and a 5 minute candle would show you doji. etc. and so forth....
Not with this Renko. Looking at a renko chart for say, reliance, it looks so easy. it looks so simple. my thinking is that even a dumb monkey can be trained to buy when there is this hollow green box and sell or go short if there is a red box. The problem with this renko chart (or with any trend following method) is that u get hit pretty bad if the market is choppy or if the market is in a range. So this Renko would not work for a stock that is trading in a range. But then, no body knows in real time whether if a stock is going to "break out" or if it is "in a range". The best you can do is look at the stock's trading history..which is what I did.
The mother (Reliance) is very very volatile every day. I guess one day she moves and the next day she has decided to just rest peacefully.... So here is my logic: use a Renko charting technique to follow "the mother" to help you stay with the trend. I can show you how simple and easy it looks on a chart after i figure out how to upload it. Renko can really help u stay away from the noise factor.
The bad thing about Renko is that it is LAGGING. If you say for example use a 5 minute Renko chart, you would get some boxes after 5 minutes. The current trading price, may not be even near those boxes (at least for "the mother"). To me this is the "noise". So i convinced myself "to have those balls of steel" that every trader needs to have and just follow the signals that my renko tells me. But then, i just realized that i have balls of plastic and can't follow my own simple basic rules some times....
no brains involved here. just reacting i.e. if the box is green and empty stay long and if the box is read and filled then go short. You may also combine this with the usual "hanging man candle" or an "inverted candle". but then, u may end up getting the trader's block syndrome and can't pull the trigger due to confusion or analysis paralysis!
For those of you who have any charting software, just try renko on Reliance (say 5 minute chart) and see for yourself. How easy does it look? But i guess this is would be analogous to watching Sampras or Tiger woods playing tennis or golf and saying, "hey, that was so easy"!
Rajesh
There are few successful traders trading on Renko charts.The trick is to optimize the Box size every now & then.
Asish
So at least I am glad that I am not suffering from "cognitive dissonance" where I am trying to convince myself that there are patterns when in fact there isn't any...
Yes, I do tweak with those box sizes and have played with different inputs for different stocks. I do have observed that these inputs are also based on the price of the stock/security. The funny thing is that all this looks good on paper isn't it?
What other techniques can some one add to these Renko charts? The chart that I had posted for Reliance was intraday chart. Scalping may not be possible using Renko but may be intra day trading is possible.
Rajesh
Yes, I do tweak with those box sizes and have played with different inputs for different stocks. I do have observed that these inputs are also based on the price of the stock/security. The funny thing is that all this looks good on paper isn't it?
What other techniques can some one add to these Renko charts? The chart that I had posted for Reliance was intraday chart. Scalping may not be possible using Renko but may be intra day trading is possible.
Rajesh
Good. What kind of analysis do you use? How do you enter? If you could get to the granularity of this scalping or trading, I am sure lots of other people would also do the same and every one of us would become better.
Why can't a trader use a Renko to enter? And why do you think that it is better for you to enter based on your own analysis and exit using a Renko?
Why can't a trader use a Renko to enter? And why do you think that it is better for you to enter based on your own analysis and exit using a Renko?
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