Renko THV Trading Strategy

This trading strategy was developed based on the THV system and therefore uses a series of custom indicators for Metatrader 4 which are included at the end of the article. This system uses Renko bars and is based primarily on price action and does not take the time factor as much into account.
The best results are produced with box sizes of 5 pips and 13 pips. Of course the trader can test the system with different box sizes.
As always it is recommended to evaluate this system with a demo account before risking real money.
After installing the custom indicators and the template we will get an image like the following:
https://preview.redd.it/putrcu7596r91.png?width=450&format=png&auto=webp&s=8330e7293174d5ee76b21ba44d1e7e7029e499c0
Example of a RENKO trading system template

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System indicators with Renko charts

If the RenkopThv template is used, we will see the following indicators:

• Renko candelas
• Candles Heiken Ash
• Ichimoku Kinko Hyo
• Coral 55
• OsMACD 13 (OsMA and MACD combined in one indicator).
• Money Flow Index 13.
• FIM 13 (Momentum and Force Index combined in a single indicator).
• CCI 13.
• TRIX.
• T3 13: It is an indicator that shows when the fast line of the Trix indicator crosses the zero line.
• An indicator that shows when the market is trendless.
• Indicator with important market news. Entering the market 15 minutes before or 15 minutes after an announcement is not recommended.

The Heiken Ashi is used to more easily determine the direction of price action.
The other templates in the system have the same indicators shown above, what changes is the way they are organized. In my case, the Renko THV template was the most convenient. Through the following link you can download this template for Metatrader 4:
-RENKO trading system template and indicators

Renko THV system rules

Long positions
A buy position is opened when the following conditions occur:

• The renko chart turns blue.
• The price is above the Coral indicator.
• The price is above the cloud of the Ichimoku Kinko Hyu indicator.
• All indicator blocks turn blue for the first time.
• The price action on the M2 chart is above the Coral indicator and trending up.
• The price action is not close to any major resistance or support.
• There should be no major market news in the next 15 minutes.

Buy position example
Example of buy position with RENKO system
Short positions
A short position is opened when the following conditions occur:

• The renko chart turns red.
• The price is below the Coral indicator.
• The price is below the cloud of the Ichimoku Kinko Hyu indicator.
• All indicator blocks turn red for the first time.
• The price action on the M2 chart is below the Coral indicator and trending down.
• The price action is not close to any major resistance or support.
• There should be no major market news in the next 15 minutes.

Sell ​​Position Example
Example of sell position with RENKO strategy

Stop loss and take profit

With this system it is quite easy to determine the entry point, the most complicated thing is knowing when to close a position. In this case, a Take Profit level of 15 to 20 pips is recommended. Depending on the market conditions, sometimes the trader may try to make a profit of 50 pips.
The stop loss is applied based on the time frame that we are trading. A value of 35 to 50 pips can be used.
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Renko THV Trading Strategy

This trading strategy was developed based on the THV system and therefore uses a series of custom indicators for Metatrader 4 which are included at the end of the article. This system uses Renko bars and is based primarily on price action and does not take the time factor as much into account.
The best results are produced with box sizes of 5 pips and 13 pips. Of course the trader can test the system with different box sizes.
As always it is recommended to evaluate this system with a demo account before risking real money.
After installing the custom indicators and the template we will get an image like the following:
Example of a RENKO trading system template

Related: Top Stock Investment Newsletters

System indicators with Renko charts

If the RenkopThv template is used, we will see the following indicators:

• Renko candelas
• Candles Heiken Ash
• Ichimoku Kinko Hyo
• Coral 55
• OsMACD 13 (OsMA and MACD combined in one indicator).
• Money Flow Index 13.
• FIM 13 (Momentum and Force Index combined in a single indicator).
• CCI 13.
• TRIX.
• T3 13: It is an indicator that shows when the fast line of the Trix indicator crosses the zero line.
• An indicator that shows when the market is trendless.
• Indicator with important market news. Entering the market 15 minutes before or 15 minutes after an announcement is not recommended.

The Heiken Ashi is used to more easily determine the direction of price action.
The other templates in the system have the same indicators shown above, what changes is the way they are organized. In my case, the Renko THV template was the most convenient. Through the following link you can download this template for Metatrader 4:
-RENKO trading system template and indicators

Renko THV system rules

Long positions
A buy position is opened when the following conditions occur:

• The renko chart turns blue.
• The price is above the Coral indicator.
• The price is above the cloud of the Ichimoku Kinko Hyu indicator.
• All indicator blocks turn blue for the first time.
• The price action on the M2 chart is above the Coral indicator and trending up.
• The price action is not close to any major resistance or support.
• There should be no major market news in the next 15 minutes.

Buy position example
Example of buy position with RENKO system
Short positions
A short position is opened when the following conditions occur:

• The renko chart turns red.
• The price is below the Coral indicator.
• The price is below the cloud of the Ichimoku Kinko Hyu indicator.
• All indicator blocks turn red for the first time.
• The price action on the M2 chart is below the Coral indicator and trending down.
• The price action is not close to any major resistance or support.
• There should be no major market news in the next 15 minutes.

Sell ​​Position Example
Example of sell position with RENKO strategy

Stop loss and take profit

With this system it is quite easy to determine the entry point, the most complicated thing is knowing when to close a position. In this case, a Take Profit level of 15 to 20 pips is recommended. Depending on the market conditions, sometimes the trader may try to make a profit of 50 pips.
The stop loss is applied based on the time frame that we are trading. A value of 35 to 50 pips can be used.
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Pivot price trading strategy

This trading technique was developed based on what is known as pivot prices and makes almost no use of indicators. As any system is not fail-safe and must first be evaluated in a demo account by the trader.
It is the development of a particular trader who shared it in a forum, so it may have its limitations. It is included in this article for educational purposes as I think it has some interesting ideas.
1. To begin with, the author makes the premise that when analyzing a daily chart, price tends to move from one key point as a round number to the next by about 500 points. In this way you have a structure similar to a network in the graphs which shows horizontal lines at 500 and 1000 points. We can say that these constitute the main horizontal lines. Likewise, we can divide each area of ​​500 points and place lines smaller than 250 and 125 points. For example, if we have GBP/USD, we can define 1.5000 , 1.5500 and 1.6000 as main lines, and between these we can mark 1.5125, 1.5250, 1.5625, 1.5750 and 1.5875.
2. In the weekly charts we define our preference regarding the possible price movements for the following days, however a lot can happen in a week, therefore it is recommended to be quite flexible regarding the conclusions. The daily charts tell us the story of now. On the weekly charts we are looking for a candle that is moving counter to the general trend from the main lines we drew earlier, or a candle that has closed above/below some of these main lines.
3. Now, what we need to look for are convincing pivot prices (not pivot points) that signal a possible short-term trend change. The important thing in this case is to be able to enter the market at the right time. The following image shows the structure of those pivots up and down:
https://preview.redd.it/w8n3d4or2lp91.png?width=281&format=png&auto=webp&s=8da0cad924256ad144c8d2a779473329da76d048
The pivot price is fully confirmed until the third candlestick (confirmation candlestick) closes.
In this way, a long position on a pivot low formed in a downtrend can be opened at the opening of the fourth candlestick, however it is also recommended to wait for a good pullback on the move from the pivot to the top of the candlestick. of confirmation. In this way, we avoid entering a position where we can get caught in a pullback which may actually be a continuation of the trend.
Likewise, the author of the strategy states that he usually trades in more than one pair at a time, because when pivot prices appear in one pair, they usually also do so in others simultaneously.
Therefore, to open a long position, do the following:

• Place Fibonacci retracements from the pivot low to the high of the confirmation candle.
• Next, open a 1 hour or 30 minute chart and wait for another pivot price that looks promising.
• Once that combination is obtained above the 61.8, 50.0 or 38.2 Fibonacci retracement levels, the position is opened at market price on the fourth candlestick. You can also enter the market in the area formed by the 61.8-100 levels if an interesting pivot price is formed.

All this allows entering the market at the best possible price with a smaller stop than can be obtained during the opening of the daily candlestick. Of course, sometimes the price just shoots up from the open. In these cases we MUST NOT chase price no matter how promising the market looks. It is best to wait for the setback.
*Note: The discussion in this Point 3 is for low pivots , however the exact opposite procedure can be applied for high pivots .
4. To confirm the signals, some indicators can also be used, such as the following:

• 1 5-period EMA at close.
• 1 EMA of 10 periods at the close.
• 1 EMA of 200 periods at the close.
• RSI of 14.

In this case, I recommend the RSIbecause it is an indicator that tells us a lot about price action. We can use it to identify trends, confirmation of entries and based on divergences with the price of the analyzed asset, which are generally quite reliable signals.
Many traders have grown to love the RSI and prefer it over other technical indicators. For example, in a bull market, the RSI will fluctuate between 40 and 90 and retrace to the 40-50 zone (on market corrections) where it normally finds support and then continues its upward trend.
The opposite is true for a bear market where the RSI fluctuates between 10 and 60 with the 50-60 zone acting as resistance. There are actually multiple ways to use the RSI, but we can use the ones mentioned above quite successfully.
5. Stop Loss and Take Profit. For a bullish position, we recommend a stop loss placed 10 pips below the daily pivot low (Pivot Low) and if the price moves in our favor we can move the stop to the low of each subsequent daily candle following the successful entry.
Likewise, we can put a Take Profit target on any of the Main Lines that we defined in Point 1, depending on the price action. The opposite procedure applies for bearish positions.
Actually, when it comes to Taking Profit, it depends on the personal preference of each trader. Some probably prefer to stay in position as long as possible while others are probably more cautious and close their positions at the slightest adverse signal from the market.

Pivot Points Example

Below is an example where the principles presented above are explained:
https://preview.redd.it/ug22h8fy2lp91.png?width=1274&format=png&auto=webp&s=a6a6145a12e7c307ff733888eeb7f8e3a51f0c2e
In this daily chart for June 2011 for the EUUSD, we see the formation of a pivot price plus a confirmation candle that tells us that there is a good chance that the price will fall. In this example, a bearish position was opened on June 9 with a stop loss 10 pips above the pivot high on June 7. The opening of this position was made based on the following 1-hour chart:
https://preview.redd.it/9y45fcf23lp91.png?width=1024&format=png&auto=webp&s=6ba56b70994758bb0201651fd73481a240906c18
Now, on the 1 hour chart we draw Fibonacci retracements as detailed in point 3 and wait for the price retracement to occur, which stopped precisely at the 61.8 level from which it began to fall sharply. We wait for a pivot high and confirmation candle in that area. In this case, the pivot high on the 1 hour chart was generated logically in the same direction as the daily pivot high.
The position was opened at the open of the 9am GMT candlestick. The trade is allowed to continue and one can even consider increasing the position size if there is a retracement to the still valid pivot high . The following graph marks the area (light blue rectangle) in which we can try to add to the current position.
Note that new Fibonacci retracements (green lines) have been drawn using the new low formed by the fall in the price of the EUUSD, which occurred shortly before opening the short position in the market.

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SonicR Trading Strategy

This is a completely custom trading system developed by a trader who posted it on a forum along with the template and indicators he designed for Metatrader 4 . It includes an English manual with examples which I will translate in this post.

Technical indicators

The system uses the following indicators:

• QQE: It is an oscillator which works in a similar way to the RSI and similar indicators.
• CCI: It is also an oscillator used to show the direction of the trend. The period is set to 63.
• NVO (Normalized Volume Indicator): This interesting indicator shows the volume of operations in a certain candle.
• 89EMA: It is an exponential moving average of 89 periods.
• ZZFractal (Optional): Helps to visualize the wave.
• TRO Tunnel Dragon: Also called Sonic Dragon. It includes three moving averages: the upper one is a 34-period exponential moving average applied to the high, the middle one is a 34-period exponential moving average applied to the close, and the lower one is a 34-period exponential moving average applied to the low. (low).

How to read the NVO indicator?

First of all, the normalized values ​​are expressed in percentages of the average value of a period. Consequently, the data in the graph can now take negative values ​​as well. This will mean a period of calm in the market.
Another particularly useful innovation is a histogram with colored bars according to normalized volume size.

• The blue color indicates that the current volume is less than the average for the current period.
• Dark green indicates volume that slightly exceeds the average value for the current period.
• Light green indicates that the increase in volume has exceeded the 38.2% Fibonacci level compared to the average value of the period.
• The yellow color means that the increase in volume has exceeded the 61.8% Fibonacci level compared to the average value of the period.
• Finally, white (red is used in the following image so that it does not blend with the background) indicates that the increase in volume has exceeded the 100% Fibonacci level compared to the average value of the period.

https://preview.redd.it/jt0zzkjs8eo91.png?width=407&format=png&auto=webp&s=149b11a75702e103e4f35a292d702f95502d994f

Waves

Before explaining what the system itself consists of, it should be clarified that it is mainly based on wave analysis . To understand this better, we will present some examples. Likewise, it is recommended to study more on the subject to have a better understanding of the system. The following example includes some words and terminologies that we will define before:

• L: Low.
• H: High (Alto).
• LL : Lower Low.
• HH : Higher High.
• LH : Lower High.
• HL : Higher Low.

In this way, in the graphic example we can see a series of higher highs (HH) and higher lows (HL) in an uptrend while in a downtrend a series of lower lows (LL) and lower highs are observed low (LH).
https://preview.redd.it/ygoiztfv8eo91.png?width=1024&format=png&auto=webp&s=a4d4cd75a96afe9852ee4743ce218f153af71b70

Trading hours

The author recommends using this strategy at the following times:

• 1am – 4am EST (UK session).
• 7 a.m. – 11 a.m. EST (US session).

Before starting to trade, each trader should verify his own schedule in order to adapt to the previous periods where this system seems to work more adequately.

Recommended Currency Pairs

The system can be used on any currency pair. However it is especially recommended for EUUSD and GBP/USD. If used with yen pairs (XXX/JPY), it is recommended to change the stop loss and trailing stops by at least 80 pips.>>>Access more profitable trading tips joining the Capitalist Exploits Insider Newsletter

Recommended time frames

This system can be applied in any time frame, however the author recommends its use mainly in 5-minute and 15-minute charts.

Rules for trading

Buy signal
As mentioned above, this strategy is based on wave analysis. Therefore it is important to have some understanding on the subject. First, we must find a Low (Low) in the price. Then the price must make a higher low (HL).
As the following chart examples show, after a higher low has formed, we should wait for one candlestick to move above the white line (the upper band of the TRO Tunnel Dragon indicator ). When this happens we wait for the candlestick to close and place a buy stop order a few pips above this candlestick.
To ensure signal reliability, the following conditions must be met:

• The QQE must be above the 50 line with a bullish direction.
• The CCI must be above the 0 line in a bullish direction. The middle line color of the CCI indicator is best to be green for a buy trade.
• It is better and safer if a higher volume load is observed on the NVO indicator.
• It is important to pay attention to the slope angle of the Tunnel Dragon TRO (or rather the three 34-period EMAs). The steeper the slope the better. It is necessary to avoid above all the periods of the market in which it is in a range (the indicator does not show a slope). For bull markets, angles that correspond to 1-2 o'clock according to the hands of the clock are recommended. For bearish markets the recommended angles are those that correspond to 4-5 o'clock according to the hands of the clock. We should avoid markets where the slope corresponds to 3 o'clock (no appreciable slope).
• For a buy entry, it is better if the price is above the 89EMA .
• It is important to review the general trend of the market and not just that of the charts in which we are operating. For this we can analyze larger time frames such as 1 hour, 4 hours and daily for example. In this way we avoid entering the market in a position that is clearly against the trend.
• We can also look for divergences. For example we can review how the QQE and CCI indicators are moving with respect to the price.

Stop Loss
For long trades, the stop loss is placed a few pips below the lower white line (the lower line of the TRO Tunnel Dragon indicator ) or close to the nearest support or set at least 40 pips. Another more conservative approach is to place the stop loss below the Highest Low (HL), which is more in line with wave analysis.
Take Profit
If the trade moves in our favor, for taking profit we can use pivot point zones , important resistances or round numbers. Another option is to put our Take Profit below the lower white line (the lower line of the TRO Tunnel Dragon indicator ) when the price touches the line again. We can also use trailing stops, in which case we can use a trailing stop order with a value of 40 pips.

*To determine the sell signals, the same procedure above is applied, but logically in reverse.

To download the template of this system together with the custom indicators and the complete manual in PDF, you can use the following link:
-Complete SonicR trading system

Re-entry

If a trade develops in a trend that shows no signs of changing any time soon, we can employ similar but slightly different ways to re-enter the market. In this case the author suggests the following steps:

1. Price Action, through which we can have a precise entry. For example, we can look for figures such as an inverted hammer or a bullish engulfing (a bullish candlestick that completely engulfs the previous bearish candlestick).
2. A change in the color of the midline of the ICC. For example from red to blue for bullish positions and blue to red for bearish positions.

We can place stop loss above previous lows for buy positions or vice versa for sell positions.

Examples of buy signals

https://preview.redd.it/hkz2pdg79eo91.png?width=602&format=png&auto=webp&s=b41d8cd4759ed681a86e5d4b2c0b400c95607853
https://preview.redd.it/db2wewd89eo91.png?width=1024&format=png&auto=webp&s=8b405acb101ad766cbb3edfa7b969552f911988b

Reentry Signal Example

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HA T3-1 Trading Strategy

This is another system that I found on the ForexFactory forum. I translated it for those who do not have a very good command of the English language. Its creator has been working on this system for several months so it is a technique that has been well tested.
Also, he created a series of templates for Metatrader 4. These templates serve as a means to follow the trend and to produce market entry signals so that the operator who wants to apply the technique does not have to do much work in reality.
The system is basically a mixture of different strategies and techniques that the author has learned over time. It is a trend following trading technique that seeks to follow the trend on the 4 hour chart.
Trend direction signals are generated on a 4-hour chart while trades are executed on a 30-minute chart. However the strategy is not limited to a 4 hour time frame, you can also use a daily chart or even a 1 hour chart for shorter trends. In this everything depends on the taste of the trader.
This trading system has been designed to be used with 15 different currency pairs. The author stated that he operates with it during the sessions of the European, United States and London markets. Below are two charts showing trading signals generated by this strategy:
https://preview.redd.it/tfrolaj2p7m91.png?width=320&format=png&auto=webp&s=92a943b85c3d88383b44d91081e9ff55db4c4ac8
https://preview.redd.it/7wvx7tt3p7m91.png?width=320&format=png&auto=webp&s=ef9ee727349fdd06831d30cc167f9db69fe8db34
To follow up on the development of this strategy, you can use the following link:
http://www.forexfactory.com/showthread.php?t=218962
Likewise, in the following link you can download the templates along with an instruction manual (among other things, the indicators used are specified) to apply this trading technique:
Templates and files HA system T3-1
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Day Trading NR4/IB Strategy

The NR4/IB strategy is basically an entry technique for day trading which was developed by traders Lawrence A. Connors and Linda Bradford Raschke and disclosed in their book “ Street Smarts ”.
The meaning of the letters NR4/IB is “ Narrow Range 4BaInside Bar ” and whenever it is detected there is a high probability of a strong move after the formation breakout.
In general terms, this pattern consists of the formation of a series of four bars or candlesticks in which it is essential that the following conditions are met:

• Condition 1: The last bar or candle (also called NR4) must have a minimum and a maximum lower than the three bars that precede it, which means that it will be a narrow bar or narrow bar 4 in English.
• Condition 2: The NR4 bar must not exceed either the maximum or the minimum of the bar that precedes it (it must be within the range formed by this bar), with which it becomes an “inside” bar, also known as inside. bar (inner bar).

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In order to better understand the concept of the NR4, you can see the following graph:
Bullish breakout of bar NR4

NR4/IB Trading Strategy Rules

According to authors Connors and Bradford Raschke, whenever the NR4/IB pattern appears , the most appropriate technique for trading this formation is as follows:

• -Traditional approach: A buy order is placed at the high of the bar and a sell order at the low of the same bar. This way, one of the orders will be executed once the price breaks up or down from the inside bar .
• -Alternative approach: If we want to apply a more conservative approach that allows us to operate more safely with the bullish or bearish breakout of the inside bar, we can place the purchase order above the maximum of the four bars that form the pattern and the sell below the low of the same four bars.

In any case, it is recommended to use the traditional approach, since this pattern is quite reliable and once the inside bar breaks up or down, it is highly likely that the breakout movement will be quite strong and produce a good profit. In this way, we can enter the market almost from the beginning.

Trading Rules

• Recommended instruments: This system can be applied in any market, including Forex, precious metals, stocks, etc. This is because the NR4/IB pattern can be found in all markets.
• Recommended Time Frames: Although the NR4/IB pattern forms on all time frames, it is recommended to apply this system on 1 hour (H1) and 4 hour (H4) time frames.
• Recommended filters: The system does not require the use of tools other than price charts, however a moving average can be used as a market trend indicator.

Position management

Regardless of whether the price breaks up or down, one of our orders will be executed and the other will automatically become a stop loss. Once this happens, the operator must act to find the best exit point, either by determining a take profit, that is, a fixed number of points from the entry level, or by using a trailing stop that is dedicate yourself to following the price movement closely.
The trailing stop can be very useful when the market shows all the signs that it will continue to move in a strong trending movement.
From the moment one of the orders is executed and a position is opened, we will manage the operation looking for a certain fixed movement of X points ( a fixed take profit level) , or we will use a training stop that follows the price closely.
Due to the potential of the NR4/IB pattern to proceed with strong market movements, it is recommended to use a take profit of at least twice the stop loss, in order to have a Risk/Profit ratio of at least 2/1 . operation will compensate the risk assumed, and the probabilities that the system will be profitable in the long term will be increased.

Real example of the NR4/IB trading strategy

In the following graphic example you can see a NR4/IB bar from which a strong upward movement develops:
Second example of a bullish breakout of a NR4 bar
So far everything is very easy right, now what many of you are probably wondering is how to find an NR4/IB bar since many, like me, simply cannot watch the market all day waiting to see one.
For those who use platforms like Metatrader 4, you can use the custom indicators that allow you to automatically detect these types of price patterns on the charts.
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