To The Moon

A strategy that has worked well for me in the past! Sharing here to give you an idea what you can do with Renko charts and the sort of stuff I do and a way to play the open of the US open trading stocks!

It is a simple Renko chart opening range break strategy and I will show you how it works using the example of US stock $Amazon.com(AMZN)$ It is combined with the following tools:

• ORB – set to first 5-minutes of US Open

• VWAP – utilising the 1st set of bands

• Awesome Oscillator (AO) * 2 (set at 3hr and 1hr and based on Candlestick chart inputs)

• Volume profile – only the POC (Point of Control) is required

• Renko Blocks MAV filter – the blocks incorporate a 200 MAV overlay, making them either bullish or bearish

• MAV – set to 10,2 periods + offset

Example AMZN 1-Minute Renko chart, $0.35 Block size

Rules:

• AO = trend filter. Both must align, which is either bullish or bearish. You will trade only in that direction. If they don't align, stay out.

• POC – Volume profile – for any trade entry we need the POC between the 2 VWAP bands – to benefit from the Volume bounce at those price levels. If this does not happen, do not take the trade.

• For a long trade, as in this example, the Renko blocks would be trending up green (bullish filter) through VWAP

• Breakouts - ORB set to first 5 minutes of the trading day, once price greater than the upper ORB and greater than the upper VWAP band = Enter the trade.

• Initial stop loss can be placed under the ORB or the VWAP.

• Exit = on MAV exit as price crosses back down (In this example, set to 10,2)

• Looking for R:R > 1:1 and Win Ratio > 60%

• NB. Rules are reversed for short trades. (POC should still stay within the VWAP, though at entry)

Its simple and effective. Let me know what you think.

If you want more detail on this strategy and others and how to use Renko charts, build strategies with an edge, get the trading mindset and much more then you can get all this and more in my new book available from my bookstore: THE STOP HUNTER BOOKSTORE

Renko Chart Trading Revolution - Theory, Techniques, Strategy & Automation for Today’s Trader

Good luck with the trading!

Stephen