This idea is designed to be used with 10pip brick (recommended) Renko charts. It combines the Renko price action with a directional coloured EMA (default length 6) and a RMI (instead of the usual RSI) indicator to provide entry and exit signal indication. The idea is to catch a Trend direction swing and stay with as long as possible.
The 10pip Renko bricks give the price action indication, it requires at least 20pip price change to change the color of a Renko brick.
The RMI is bit like RSI with a built-in momentum factor and works well with Renko. RMI indicates price momentum and strength of the swing and stays in the overbought (for long) or oversold (for short) whilst price has momentum in that direction.
Signals are optionally filtered by Daily or Weekly Open Rice, where by only trade long above open and short below open (this option is enabled by default). This helps control some short range swings getting out hand.
The directional EMA 6 is also used to detect the Price swing and is combined with the other indicators to provide a confirmed swing indication.
Exit occur when EMA or RMI reverses direction. Alternatively for quicker exits (disabled by default) when the Renko prints a brick in the reverse direction.
Each Entry and Exit signal creates an Alertcondition that can be picked up by the TradingView Alarm system.
TIP: To get 10pip Bricks set Renko to "Traditional" type bricks and 0.001 for non-JPY currency pairs and 0.1 for JPY currency pairs. Also set chart Time frame to 5min or 15mins.
The 10pip Renko bricks give the price action indication, it requires at least 20pip price change to change the color of a Renko brick.
The RMI is bit like RSI with a built-in momentum factor and works well with Renko. RMI indicates price momentum and strength of the swing and stays in the overbought (for long) or oversold (for short) whilst price has momentum in that direction.
Signals are optionally filtered by Daily or Weekly Open Rice, where by only trade long above open and short below open (this option is enabled by default). This helps control some short range swings getting out hand.
The directional EMA 6 is also used to detect the Price swing and is combined with the other indicators to provide a confirmed swing indication.
Exit occur when EMA or RMI reverses direction. Alternatively for quicker exits (disabled by default) when the Renko prints a brick in the reverse direction.
Each Entry and Exit signal creates an Alertcondition that can be picked up by the TradingView Alarm system.
TIP: To get 10pip Bricks set Renko to "Traditional" type bricks and 0.001 for non-JPY currency pairs and 0.1 for JPY currency pairs. Also set chart Time frame to 5min or 15mins.
JustUncleL