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TRNS
  • 5 months ago
https://tradernws.com
Transcript
00:00Time for some reintroduction to RANCO and discussions around RANCO settings, thought process, etc.
00:09So where we are from kind of this perspective is we've done the introduction to RANCO a number of times.
00:15We've done a couple of times in Haven where we've gone through RANCO content, what RANCO represents, how we assess RANCO.
00:22And so please find those videos if you're completely unaware of the RANCO thought process.
00:26But what I want to discuss really on this is reintroduction to the concept, reintroduction to RANCO charts, thought process around what indicators I'm using at the moment with RANCO.
00:37And then thought process into how we can utilize RANCO from lower time frame through to higher time frame swing trading setups and basically set ourselves up in the best possible way to take advantage of this very unique but incredibly helpful charting tool.
00:55So we'll start off with BTC here and what we're using is we're using reversion bands, okay, nice and simple reversion bands.
01:01We touch the outside of the reversion bands, we expect a return to the midpoint.
01:06We touch the lower boundary, we expect a return to the midpoint, okay, that's what we're looking at doing.
01:11So what this does is it sets up very nicely for moves back and forth.
01:14And as you can see demonstrated through here, touches of the bottom, rallies to the highs, back towards the middle, back to the highs, back towards the middle, back to the highs, okay.
01:23And so we just do this process repeated and it just gives us some very good setups.
01:28Now what we're looking for when we're using these, and as you can see here, they are Cuban's reversion bands.
01:34What we are looking for is divergences typically that support the overall direction in which we're looking at counter trading.
01:43So this example that you can see through here down at the lows and awesome oscillator is a very good, very good indicator for usage for divergences on this because we can sometimes ignore some of the crossovers.
01:56And we can see here that what we have is just reducing momentum and this low that we made over here is actually just kind of like a fake low.
02:04The momentum actually drops again below this one.
02:07And so we have this diminishing momentum on the way down, provides a really good long setup over here.
02:12What you can see then over here is a nice divergence between these highs, a little bit cleaner in terms of our natural divergence.
02:18And we can trade it back down to below our midpoints, okay.
02:21And we just take this process and we just utilize this process back and forth.
02:27This Renko system, which is under ATR, this Renko system is one of the most brain-dead, robotic, profitable processes which you can engage in.
02:40You simply do not take a trade unless your signal is achieved, your signal being divergences.
02:47If you have a divergence that takes place in the outer extremes of the bands, you take a position.
02:55It's as simple as that.
02:56This system is essentially the core of what I started scalping with like six years ago, all right.
03:02This was like my full-time scalping approach was this.
03:05It was operating on a far faster basis because I was using tick data.
03:11But that's essentially what we're looking at doing.
03:14So we'd see the situation here now with BTC.
03:17We would see the fact that it's trading into the extremes here.
03:20There's no divergence yet, obviously.
03:23But if we are to make a divergence by trading up here, this is a market that we would then look at shorting back to what would be our midpoint,
03:31which would probably be around this 86,000 mark, right.
03:34Nice and simple thought process.
03:36Now, the wonderful thing about this particular system and this particular way of trading, which is primarily, aside from me sharing the candlestick charts with everybody,
03:46this is primarily the chart that I look at.
03:48It just saves so many questions when I use candlestick instead of this chart.
03:53You know, I post a Renko chart sometimes.
03:56And, you know, basically, I just have to answer the same questions 100 times over.
03:59And so I'm doing this as well to kind of give you that backing.
04:03So when I just start producing all of these Renko things, then you can have a better understanding of, you know, what it is that I'm representing on that.
04:11Wonderful thing about this is it expands out.
04:14OK, it expands out over multiple time frames.
04:16And so when we're looking here at the four hour, we can essentially take the same thought process in terms of what we're doing and we can look at making the same trades.
04:26Now, with Renko, it is a it takes far longer for us to produce signals on the higher time frame because of how Renko prints.
04:36And so Renko isn't producing.
04:38This is a four hour chart.
04:39But as you can see through here, this is already two months of price action just in this little patch here.
04:44So it isn't a kind of chronological piece in terms of the timing element.
04:50There are lots of gaps and condenses and expansions to time depending on the volatility.
04:55Renko is really showing us the underlying price action and trend that we should be interested in.
05:02But as I said, we can utilize this all the way up to the higher time frames.
05:05And we've got a really nice one now on the 12 hour from BTC back down to our midpoint trading into the extremes, potential divergence,
05:11play out of the divergence back towards our midpoint here.
05:15So this is one of the very easy ways of using Renko.
05:19And again, remember, settings wise, ATR for this and and just utilization of Cuban's reversion bands.
05:26I believe the bands are free now, I believe.
05:29But you may need to double check that.
05:34And then the same with here with SPX.
05:36OK, we have our divergences through the highs into this extreme area.
05:39We're back to the midpoint, potentially going to flip this and move back towards the upside would be the ideal scenario, obviously, for everybody.
05:46Lower time frame, equally applicable in terms of what we're looking at from system perspective.
05:51When we're looking for those divergences down at the low and we're looking at playing between the bands, you'll see it when it finally loads in now.
05:58You can see a huge overextension here in the strength of the market from SPX's perspective here.
06:02But again, just simply mapping out some of these key points here.
06:06Divergence here, divergence here.
06:09All right.
06:10Very simple in terms of taking trades back towards kind of top end of the boundaries, back towards midpoints,
06:16depending on what your process is and where you're looking at holding from and to.
06:21It is a very simple system.
06:23You want to use Renko, ATR, you want to use Cubans, reversion bands or any other form of reversion bands that you believe will be helpful.
06:30And you want to be using the awesome oscillator.
06:32The awesome oscillator is far more helpful than RSI when it comes to Renko.
06:36It's why it never is on this chart.
06:38And we can start setting the scene now for some of the ways that I will display this data.
06:44The other time that you will see me utilizing Renko is when I show this view.
06:48And this view is a view that provides a very, very higher time frame look at the trend.
06:55It provides some of the ways that the market trades.
06:58And it just provides a very clean trending price action.
07:01This essentially is a guppy.
07:03It's a combination of moving averages that all work together, which is why you see this color gradient difference in the market here.
07:09So we see this color gradient difference, and this is providing us an input into the different moving averages that are in here, whether or not they're crossing over each other, whether or not they're starting to move away from each other.
07:20And then we can start looking towards these retest points.
07:23It's just a very pretty way of displaying moving averages, and it tends to do very well from a sharing perspective.
07:28So predominantly, reversion bands are far more helpful, especially for lower time frame traders and especially for higher time frame traders as well with the ability to take those swing trades based off higher time frame divergences down into the extremes of what we would consider value.
07:43So a couple of ways that I kind of just want to bring people back on board to this Renko style and Renko approach, because I want to make this the primary charts that I share in almost every channel.
07:55And so part of that process is going to be upskilling everybody.
07:59Have a play around with Renko.
08:00Let me know any questions that you have in members' questions around Renko.
08:04I will do my best to consolidate them and to answer them.
08:07And so I can provide you with kind of like one detailed video answer that hopefully gets a lot of points, and we can just link to that anytime anybody else has any questions in the future.
08:17And then we can start producing some more Renko content to start thinking about kind of what this looks like on scale for everybody and people who want to start using Renko more actively, lower time frame or higher time frame.