- Topic: Renko in this thread - When is a trend established?

Theo Patsios on Renko in this thread - When is a trend established?

Wed, 06 Nov 2013 01:36:05 -0800

you could use the word wave or push and I would understand from the context of the sentence,
I used the word push because it is more specific to explaining a one directional movement.

Generaal_Goudvis on Renko in this thread - When is a trend established?

Wed, 06 Nov 2013 00:13:05 -0800

Oke this I understand. And to keep the same terminology, I shouldn't use the word "wave"Â buth "push".

And at the red arrow, the second push is the first trade.

By having the same terminology, I also understand now the 5 moves (pushes so to say).

Theo Patsios on Renko in this thread - When is a trend established?

Tue, 05 Nov 2013 13:15:19 -0800

You have explained to yourself perfectly what is a Trend Continuation.
That would be the 3rd push and you can also trade the 4th and 5th on strong moves.

Just remember that the first wave could also have been traded safely if you were able to establish that it was a viable turning point for the wave scale above it.

Generaal_Goudvis on Renko in this thread - When is a trend established?

Tue, 05 Nov 2013 11:20:00 -0800

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I reread part of the ebook and also looked again to part 2 of the video's, but I can't get my head around the" when is a confirmed trend"? And I believe that it is an essential part to understand of your PA. So I want to understand this very well.

I understand that it is (based on a sell) the result of LH's and LL's. But at what point in time? And how is a wave defined?

So I have drawn a picture with arrows. To make myself clear.

For me the trend would be established (and therefor tradeable) after the first high, the lower low and the new lower high...So at the red arrow...I would call this the first wave.

After the first lower high, a new lower low and the new lower high...A second wave is established, So at the blue arrow.

Theo Patsios on Renko in this thread - When is a trend established?

Tue, 05 Nov 2013 07:59:48 -0800

The Swing_1 and Swing_2 indicators gives you the green and the brown swings.
They are essentiallyÂ two time frames / scales in one chart, correct

It is the same idea as WavEFX only you are using a random number for your Renko size,

you do not need WavEFX to emulate what I have done, just creativity

Generaal_Goudvis on Renko in this thread - When is a trend established?

Tue, 05 Nov 2013 07:48:48 -0800

Theo said

It's important not to ignore the fact that there are different trends on different time frames.
That is how I use my organic Renko with swings on them, to allow to me to observe different time frames on 1 chart.
An important note since you are using Renko I see, you should also have a Daily Chart open with it.
If Daily is too slow for you then try an H6 or H8, looking at the size of your Renko an H4 would also work.

Just to make sure I understand it a 100%:

If you don't use the WaveFx chart with the organic Renko on it, you have to use two views with a larger timescale on it (like daily or H4)?

So even if I installed the Swing_1 and Swing_2 indicators that gives the green and brown swings? I thought that these green and brown swings where to integrate two timeframes/scales in one chart. So the green, being the larger scale and I used it for that purpose.

Trying to be thorough and understand it correctly.

Generaal_Goudvis on Renko in this thread - When is a trend established?

Tue, 05 Nov 2013 05:27:19 -0800

In a way I already got punished for being too eager (so having no patience). Had three losing trades for jumping on trades too soon.

So not enough confirmation -on larger timeframe-. Too much resistance nearby and simply being not patient.

My two main lessons to learn are:

- Being more patient

- Using two timeframes (or views)

Theo Patsios on Renko in this thread - When is a trend established?

Mon, 04 Nov 2013 22:56:21 -0800

A trend is established,
in the case of a buy,
when you have confirmed HH and HL and would be trading the next HL in the sequence.
This is the Trend Continuation pattern as shown in the video course and would be the 3rd push,
you can then also attempt 4th and 5th waves depending on power of the move.

What you are attempting there is to trade the turn of the Green swing using the Brown swing.
I do this all the time but will pay close attention to the context of the Green Swing and it's structure.
It's important not to ignore the fact that there are different trends on different time frames.
That is how I use my organic Renko with swings on them, to allow to me to observe different time frames on 1 chart.
An important note since you are using Renko I see, you should also have a Daily Chart open with it.
If Daily is too slow for you then try an H6 or H8, looking at the size of your Renko an H4 would also work.

Generaal_Goudvis on Renko in this thread - When is a trend established?

Mon, 04 Nov 2013 10:16:38 -0800

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When is a trend established? And is trading with the trend save and allowed?

As you see in the picture. the green line hasn't reversed in the black box, but price has.

in the circle we have a Higher Low but not a confirmed Higher High. So is my entry to quick? And should I have waited for the green line to be in line with my actions?