Another challenge I quickly came to was what settings to use on TV for Renko charts. A special thanks for @GcNaif for helping me with these configurations for Crude Oil (which I've used similar concepts for other markets listed below)
I've carried over some indicators and strategies I've used in past on other style of charts which include:
Indicator (DMI): 14/14
For the settings of the Renko charts on TV, I'm using:
Box size: This one varies by market and also by time frame
I think that Renko is supposed to be tick based with box size the price movement that happens before a box is rendered but with TV, this has to be emulated with a short time frame. For trading signals and short term bias determination, I used 3 minute chart as recommended by @GcNaif. In addition to the 3 min chart, I use a daily Renko chart for long term bias determination. Some links/strategies you will find suggest a 4 hour chart. One thing that you have to keep in mind is that a box won't be final until the time frame has closed. With a 3 minute period, this means that a block will be final every 3 minutes and that strategies can be based on this frequency. However, on a daily Renko using a 'source' of close won't be final until the close of the day (which in Crude Oil there can be alot of movement within a day). I've found it hard to make trading decisions on some of these markets using 4 hour higher.
Some key concepts:
short term bias is determined by 50/200 on 3 minute chart. If 50 is above 200, the bias is up. If 50 is below 200, bias is down. If they're at or near each other, move to the and look at the same to determine the long term bias and use it.
TSI above 0 is and consider buying. TSI belwo 0 is and consider selling.
Stochastics crosses up over from 20, considered a buy signal soon. Stochastics crosses down over 80, consider a sell signal soon.
7&13 cross over either up or down across price use as either buy or sell based on direction
Only make trades in direction of short term bias
First strategy I'm exploring: Breakouts using DMI.
This is based on the of the DMI dropping below 20 for a period of time causing price to consolidate.
Box size: 0.0001
On the current 3 minute AUDUSD chart, you can see a breakout based on at point (A) on this chart. After the selloff, price consolidated again based on and is currently at a state where it may breakout to the downside again (B). Looking at point (B), there are a couple of things I'm looking for as a confirmation based on pointes from above.
a) TSI drops below 0. A strategy using TSI is that above 0 is and could be buying with a drop below 0 is and should be selling
b) Stochs crosses over above 80 and drops
c) 7 & 13 cross over price with bias down
Box size: 0.01
Box size: 0.01
Box size: 0.10
Crude Oil looks like it is moving into a period of consolidation on the 3 minute chart but the daily chart's is still strong. This coming week should help resolve the question if the will continue below 20 on the 3 minute chart or if this was just a bounce and price will continue up.
The daily time frame is posted above. The 3 minute chart is below:
Box size: 0.01