Animal Farm (Renko system) - MT4/MT5 Resources

animal farm.

Read this book and find out who the pig is. Let's make some pork chops.

Please note that there is an error in post number 264 on page 14.

Here's how it's read:

"The first rule is:

A new LH cannot be identified until price breaks above the previous low.
A new HL cannot be determined until the price breaks above the previous high.

To make the chart easier to interpret, I used the Bill Williams fractal to identify LL LH HH LH turns in the market. "

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In this post we can try to develop some new ideas for trading Renko charts, especially median Renko charts.

I have read other Renko threads on Forex Factory, and since I like to give credit where credit is due, I recommend that anyone with little or no knowledge about Renko visit these threads and study the material there.

I will quote the sources of all the tools I use here, especially the various Expert Advisors that can be used to draw Renko charts on MT4. In the process, I thank the programmers who worked hard on this and salute them for sharing so generously.

I'm not a big fan of metrics. I would rather develop my understanding of price action until I don't need lagging indicators, or worse, a lot of lagging indicators. Price is what I use to make my decision. Having said that, I do have indicators on my chart for two reasons:

1. I like an indicator that helps me determine if I am in a trend move or against a trend move.
To do this I use the 5 34 5 MACD and overlay the 5 period EMA on top of it. I like the 5 34 5 MACD because I can use it to calculate Elliott Waves. More simply, it is used to easily identify trends and counter trend movements. I'm a big fan of the Elliott Wave theory, but I would really simplify it, just like the Renko chart simplifies a lot of things.

If you have Elliott Wave issues, I sympathize. I see a lot of Elliott Wave analysis by bull market artists and the whole subject gets a bad rap. I use Elliott Wave analysis; this is not an easy topic. I'll try to make it very simple. If you're against Elliott Waves, keep going. If you have an open mind, let's see what I can teach you. What I will say now is that I am not here to debate the subject of Elliott Waves with the naysayers. This is very useful for me. If you have a problem with this - go elsewhere.

2. The De Mark/Mouteki indicator draws appropriate trend lines.
You will soon be able to correctly draw these trend lines yourself and no longer need the DeMark indicator. It's a good thing to keep it around because it does some of the work for you, plus it can sound an alarm. It can also position fractals and some pivots. Fractals are indeed amazing, but just like Elliott Waves, many people don’t understand them.
3. Fractal. Chart decorations or symbols that draw your attention to important locations on the chart? You can easily train your eye to find fractals and pivots on any chart, including Renko charts. Do you need to plot them on a diagram? Personally, I'm trying to get rid of all the tree ornaments people hang on their charts. I think in due course you will no longer need fractal indicators on your charts. Whatever your choice.

4. Lotus family. Anything other than price on a chart is redundant in my opinion. Brick shape is purely price.

I have no doubt that people will show up with various indicators.

I urge all traders to try the following methods. I think this is a acid test for the metrics. This is page 85 of Bill Williams' book New Trading Dimensions.

“You can place profitable trades using just this oscillator, without even knowing what the current price is. … When you say you can place profitable trades without even looking at a price chart or asking about the current price, consider the reaction of other traders.”

I've been working on this for a long time, developed many indicators and tested hundreds of them. If you have an indicator that meets the above criteria, then it will interest you, otherwise it won't.

A final word about indicators:

Later, I will use indicators to alert on places or situations on the chart that require attention. I'm a busy person and I don't want to sit in front of a computer and wait for things to happen. I like to hear an initial alert and then a confirmation alert telling me that a trading opportunity has arrived. I think these are more of an alert system than indicators.

I will get these alerts, but not yet; one step at a time.

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5 34 5 MACD is superimposed on 5 EMA for analysis.
Demark trend lines and Renko charts for trading signals.
Fractals at turning points.

Eventually, Renko, MACD, and some alerts will prove useful to your brain.

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Indicators, scripts, templates and PDF files will be published here:

Some good scripts to help manage transactions:

Clear all objects. Close and reverse. Close all orders for a specific currency pair.

(Other scripts will be added later.)

Optional:

Profit Tracker. Track our performance.