Power of the Renko · Income Trader Alliance

Power of the Renko

Making these charts is helping me understand how this futures trading works (I am very new to this). So I thought I would share it in case it can help anyone else. I know this will be common sense for some of you but it really helped me to see it on the chart. I attached the pdf but here are a few details. If I am wrong about any of this, feel free to tell me. This is what I see so far.

This example is set to 5 ticks. So each time there is a movement of $1.25 = 5 ticks, then a bar appears on the renko and the reason why this is so effective for us is this is NOT time bound. Which is why I made this chart to remind myself that Jeff is always reminding us that this is the pattern of the price action. So this shows you how spaced out the times are based on the ticks that it moves in that time. Which tells a very different picture then the chart. And he says it helps take the “noise” out of the charts and helps us make better decisions based on price action, if we want to stay or get out of a trade. (see first pic) Jeff said sometimes based on price action you change it to 5 ticks so you see more bars print, compared to having it at 8 ticks.

I put these bars for the renko in the times on ES chart that the renko reflects, to help me see how we don’t get caught up in the view of the ups and downs, its part of the wave. That is why we watch the price action pattern in all the tools Jeff gives us. Wow, this is starting to make sense one piece at a time! (see second pic)

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