Trade Tiger - Tips, Tricks and Hints

[DSM]

Tracking Nifty Futures with Renko 1M Charts (For learning purpose only)

 

[DSM]

A perfect trade in Nifty : Renko 1M Chart.

Ofcourse today was a trending day so the chart is clean. It will be interesting to see Renko perform in a sideways market, and what insights we can gather....

From today's chart, we can get a clear idea of where to place a SL if going long - It would be at a level below the close of the previous 'brick' and that would be 13 points.

 

[timepass]

Sideways : 1min Renko chart of Rcom today. Try trading that

 

[DSM]

Good one TP :lol:

Still at the learning stage, so observing how 1M Renko behaves while watching 5M Candlestick chart.

My comments on combination of Renko/Candlestick chart :

1. Today was a strong up trending day. No reason to go short on stock - though 3 fakey bars appeared to break the low of the 1st 5M bar in Rel. Com. In plain speak, this stock was an 'avoid' in my view as it almost never broke the 1st 5M bar, and was 'inside' day.

2. The 3 Breaks of 1st 5M bar lows are all fakeys. (Easy to comment EOD - but as said, never any reason to look for shorting in today's up trending market)

3. Instead of Rel. Com which was 'strong' as wet cardboard, why not look to trade a more 'liquid' index? Or even stocks that had clear breakouts? Moreso, when they are clearly trending?

4. Trading Rel. Com based on today's chart today would be would be akin to betting on a limping horse when it is clear which of the the horses are leading the race. :lol: Why would you even trying doing that?

5. Renko chart of Rel. Com did not provide any signal to trade.... how could it? It was telling you to not take the trade - in my view

6. Attached candlestick chart for reference for comparison :

Sideways : 1min Renko chart of Rcom today. Try trading that

 

[hmp]

In Renko setting is it daily ATR or Traditional.If traditional then brick size & time frame?

 

[DSM]

Hi HMP,

The ATR settings are Daily. Brick size is 13 points and TF is 1M.

In Renko setting is it daily ATR or Traditional.If traditional then brick size & time frame?

 

[DSM]

From : http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:renko

 

[DSM]

Hi TP,

After your post, was reflecting later in the evening on Rel. Com's intraday performance. And for clues to trade, I do look at the chart in higher TF : 2 Day 15M and 30D 240M (4H Chart) And when I did so, it was not very surprising to note why Rel. Com. failed to move in a strong uptrending market. I compared the 2 charts : 30D 240M Candlestick and 30D 240M Renko. Both show clear weakness. Am posting these charts for your reference.

I will look at the data of Rel. Com. 240M Chart from Renko to find if a viable and directional option strategy can be used - as it would mean taking a swing position and holding it for a period of a few days to a weak atleast.....

Charts below :

Sideways : 1min Renko chart of Rcom today. Try trading that

 

[ankur07090]

Hi DSM,

When i apply Renko charts on 15M TF all bar interval are not same. Some are 30 minutes and some are more. can u please share what are renko bars...?

 

[DSM]

That's the beauty of Renko Ankur.

Basically Renko will print the next brick only if the price closes above/below the ART Range (e.g 13 points in Nifty) So unless price moves and closes above/below the ATR range, another brick will not be printed. Hence in full day chart of Nifty for Fri. (Trading time 435 minutes) the Nifty Renko 1M chart has only 7 bricks.....

Trust this clarifies.

Hi DSM,

When i apply Renko charts on 15M TF all bar interval are not same. Some are 30 minutes and some are more. can u please share what are renko bars...?