Renko Bars + Moving Average Trading Strategy -- with David Moadel
hello friends and welcome to looking at the markets with David Modell today I'm
going to give you a quick and easy tip about Renko charts and how you can
hopefully be more successful with them by confirming with a moving average and
I have a basic explanation of what Renko charts are in a separate video that will
be in a link in the description below this video so you can click on that and
then come back to this video if you need an explanation about Renko charts and
the basics of that also by the way I do offer coaching I just
wanna let you know right now that if you need more help with indicators or if you
have a if you need a trading or investing plan you really should have
one I can help you to put that together I do offer coaching and for that you can
contact me at David Modell at gmail.com I also have a number of free reports
financial reports that you can download and that is that's all in the
description below this video feel free to click on that okay so we have a Renko
chart here and it is Twitter and this is the daily chart with the data you know
its daily but according to you know I put it on on daily but that's the funny
part and this is from trading view but the funny part is that these bars are
not really time-based Renko bars also called bricks you can't really call them
daily I mean it's not based on time so even though I have it set on on one day
here that doesn't necessarily apply here okay but I do want to let you know that
you can I believe apply what I'm about to tell you to intraday trading whatever
frame you're on alright but it's not really time-based alright so but the the
exponential moving average is up there you can see that in blue and I put that
on 20 and closing price alright the 20 EMA and what that does is
what some people do with the Renko bars or breaks is that when you get a green
one you might go long you know you might buy and then you
don't sell until you get a red one alright and so that that takes you out
all right and the red one might be the very next bar or it might not be for a
long time which is nice you get a nice run up okay
so for example here you might enter here enjoy this run up get stopped out here
or sell here and then oh there's another green one enjoy a run up sell here
pretty good okay not too bad and the problem sometimes happens when you know
sometimes it gets frustrating if you have a big downtrend like Twitter head
here then you know you end up buying on this green one and then immediately
selling on the red one and you know or or buying on this green one and then
immediately selling on the red one and that's pretty frustrating so perhaps to
avoid you know going long on the green ones within an overall downtrend which
is probably not a great idea necessarily so you can put a twenty period EMA here
and then only take a long position only buy when you get a green bar and it's
above you want the the body to be completely above the line above the
twenty EMA here so for example you could have bought here and enjoyed a nice run
up sold here buy here cuz it's still above the line okay and you know and it
goes up and up and up and then you don't sell till here and you buy here sell
here alright you know you break even or small loss no big deal after those big
run ups and then you buy here you sell here for a really tiny gain or breakeven
but again you and you really enjoyed those big run ups and so you don't mind
taking a couple of tiny losses and I would not have bought here because it's
not completely over the line here it's really starting to have a serious
downtrend here so I would not buy here it's kind of only partially above the
line that's not enough for me and then I would have avoided getting stopped out
here and of course I would have avoided all this loss and then what I have
bought here no I would not have because it's below the line and I would have
been right not to buy here because I would have just ended up selling
immediately for probably a small loss or breakeven perhaps but it's it's a big
downtrend here alright so you wait and you wait until see so I would not have
bought here and wasted you know that would have been a waste to buy there and
then sell immediately afterward then buy here and immediately sell afterward no
because it's below the line I wouldn't have bought here wouldn't have bought
here I probably wouldn't have gotten in until it's clearly above this one's
still kinda sorta above but you know not enough for me this one this bar this
brick is definitely above so I could have taken a long position here and then
sold here and then bought again here sold here for a couple of nice ones
especially this one over here okay so I would not have an I would not have
enjoyed the entire run up but would have missed out on a few bars here but that's
okay if it helps me to avoid buying within an overall downtrend
alright so you know and this could be used I believe well first of all none of
these indicators are perfect alright please don't think that this works 100%
of the time alright there is no such thing so please
be aware of that but do I believe this could be used
intraday or you know on a longer-term swing trading kind of timeframe like we
see here sure I think it's worth trying but you definitely want to pay per trade
it or virtual trade at first make sure it works before you actually commit real
capital to it and then and even then only commit small amounts of capital
that you can afford to lose otherwise don't do it alright so if you found this
video helpful hey why not give it a thumbs up on YouTube I really appreciate
that that lets me know that you want more videos like this and leave a
comment have you tried this do you like the Ranko bars how do you confirm what
kind of confirmation do you use and please subscribe to my youtube channel
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I put out videos like this one and check out the free reports
the description below this video as well as the basic explanation of Renko bars
thanks a lot I really appreciate it I'll talk to you again soon
you