A blend of time and non time based charts gives you the perfect approach to trading

A blend of time and non-time-based charts gives you the perfect approach to trading

Using a blend of time- and non-time-based charts gives you the perfect combination for trading any market. Non-time-based charts reveal the one thing a time-based chart never shows, and that’s momentum, and the Renko optimiser for NinjaTrader is one such example. But there is always a problem with non-time-based charts: deciding on the settings. With the Renko optimiser, this is done for you, delivering the optimal settings at any time during the trading session. The Renko chart also smoothes out price action and delivers smooth trends, as we see here, and is even more powerful when used in this multiple-chart approach.

00:11

Introduction to renko workspace and multi-timeframe charts

00:11

The speaker introduces their Renko workspace, highlighting its unique functionality and current reversal pattern. They explain the advantage of using multiple time frames simultaneously, displaying 15-second, 30-second, and one-minute time-based charts at the bottom. This setup allows for effective application of volume price analysis (VPA) along specific price levels. Additionally, various indicators such as volume point of control, accumulation distribution for price-based levels, and a trend monitor are integrated to enhance analysis.

01:05

Setting optimal renko box sizes and values

01:05

The speaker explains how Renko charts are aligned to different time frames, such as 15 seconds, 30 seconds, and one minute. They demonstrate selecting a 15-second time frame and adjusting the Renko box size from nine to eight points, which corresponds to a value of forty dollars per brick on a small Dow contract. This setup illustrates the monetary value represented by each Renko brick.

02:08

The presenter carefully adjusts the Renko box size for a 30-second time frame, setting it to 12 points, and then switches to the one-minute time frame with a box size of 17 points. Each brick value increases accordingly. The segment concludes with a mention of the Renko optimizer tool used to determine these box sizes.

02:42

Renko optimizer and trend monitor explanation

02:42

The speaker explains that NinjaTrader automatically delivers the optimal brick size for Renko charts, removing guesswork similar to how a tick speedometer works for tick charts. This dynamic adjustment reflects the current market conditions, allowing traders to avoid manually setting brick sizes, which can be arbitrary. The optimal brick size adapts to the trend’s strength and pace during the trading session. Additionally, using multiple time frames offers the advantage of applying indicators effectively across charts, enhancing trading decisions.

03:45

The trend monitor indicator transitions first on the fastest chart (8 Renko, equivalent to 15 seconds), then on slower charts (12 on 32 seconds, and 17). This progression confirms the trend’s strength and continuity. Traders want to see the trend indicators, such as trend dots, closely following price action and changing color in response to market shifts. When the dots are below the price, they indicate upward momentum, and when they roll over above, it signals a potential reversal or weakening trend.

04:18

Trend dots behavior and bullish reversal

04:18

The speaker describes the behavior of bricks in a trend reversal, noting how they change color and move in patterns that support a bullish reversal. They highlight differences in movement across time frames, especially on the 17 brick and one-minute charts, where the trend continues higher. Attention is drawn to trend dots which reverse briefly but then return to bullish momentum. The Tremontus indicator shows no sign of change, providing strong confidence to hold the position. The speaker emphasizes that mastering this aspect of trading is very challenging but crucial.

05:22

Importance of holding trends for profit maximization

05:22

The speaker discusses the challenges of staying in a trading trend to maximize profits, emphasizing that traders often get prematurely exited and miss out on gains. They highlight the importance of managing small losses, which are common, in order to allow for fewer but larger winning trades. Successful trading doesn’t require a high win rate; even a 30-40% win rate can be profitable if the wins are significantly larger than the losses. Additionally, maintaining awareness of related markets such as bonds and currencies can aid in managing risk during trend developments.

07:23

Market risk-on/risk-off currency flow analysis

07:23

The segment explains the current market behavior focusing on the Japanese yen, which is selling off after being overbought. This selling reflects a risk-on environment, as seen by outflows from safe-haven currencies like the yen and inflows into risk currencies such as the Australian dollar, New Zealand dollar, and Canadian dollar. The overall market sentiment is shifting towards risk-taking, influencing currency movements accordingly.

08:26

The core concept of trading is described as a constant seesaw between risk-on and risk-off, driven by money flow moving between safe havens and risk assets. The VIX index is noted to be trading lower, indicating reduced market volatility. The use of Renko charts is praised for their smooth depiction of transitional price phases. Additionally, the trend monitor tool is highlighted for its effectiveness in identifying trend transitions through color changes, signaling shifts from downtrends to stronger uptrends.

09:56

Trend monitor and accumulation distribution indicator

09:56

The speaker explains the use of the accumulation distribution indicator to identify market strength and resistance levels. This indicator visually represents tested levels, with numbers indicating how many times a level has held, highlighting stronger and weaker points. The discussion includes how clusters of strong levels influence market behavior and the integration of other technical analysis tools like non-time-based charts such as Renko or tick charts, which complement volume price analysis by providing clearer signals of momentum and support/resistance.

12:05

Attention is drawn to weakening price action during an upmove, with volume and candle patterns indicating potential resistance. The accumulation distribution levels are compared to a ‘spinach and Popeye’ analogy, where repeated testing strengthens resistance or support zones. The speaker emphasizes the importance of these levels being tested and breached on decent volume to confirm market direction, noting a previous strong resistance that became support after being broken.

13:01

Further resistance levels are identified higher up, with volume patterns playing a key role in determining the ease of upward market movement. Volume decreases at higher price points can facilitate smoother advances. The speaker also notes concurrent market movements, such as the Australian dollar rallying and the Japanese yen weakening, while advising to monitor the VIX volatility index for additional market context.

14:00

The discussion shifts to trading on Globex, highlighting its advantages such as smoother price action and reduced volatility compared to other trading sessions. Although previously criticized for this view, the speaker notes a growing acceptance of Globex’s benefits. The segment concludes with a mention of reviewing three major indices on five-minute charts, setting the stage for further market analysis.

15:00

Volume point of control and index market overview

15:00

The analysis focuses on the daily charts of the YM, Y, and NQ futures, highlighting the significance of the volume point of control at the current price level. It suggests that the market is likely to experience congestion here due to strong volume resistance, requiring considerable effort to break through. The trend monitor indicates a neutral to slightly positive outlook, but traders should expect sideways movement near this key volume area. The NQ is attempting to break away from its volume point of control, with similar conditions evident in the ER futures. The overall message is that intraday trading should be guided by observed market behavior, especially around these volume-based resistance levels.

16:23

The trend monitor shows a transition from bearish to bullish colors across multiple markets, indicating a longer-term bullish trend despite short-term congestion. Shifting focus to currency futures on a 15-minute timeframe, the analysis notes strong dollar buying since midday, with the Japanese yen showing signs of rolling over. This currency movement could influence broader market dynamics if the current trends continue.

17:21

Currency futures and risk currency buying

17:21

The segment discusses the behavior of risk currencies such as the New Zealand dollar, Canadian dollar, and Australian dollar, noting that these typically move together due to their classification as risk assets. The yen is showing signs of weakening, reflecting a shift in market sentiment towards risk-on conditions. Various currency pairs including the Aussie dollar, British pound (Cable), Canadian dollar, euro, and yen are analyzed with a focus on their movements against the US dollar. The segment highlights that futures prices are quoted inversely against the dollar, affecting how movements are interpreted.

18:53

This part explains why certain commodity currencies are moving sideways due to simultaneous buying of the US dollar along with the Canadian, New Zealand, and Australian dollars, creating market congestion. The euro shows some momentum, while the Japanese yen is weakening as the dollar strengthens. The British pound is mostly stable, fluctuating sideways with little movement. The speaker concludes the session, noting limited dollar momentum and wrapping up the market overview.

19:49

Forex education program and funded account webinar details

19:49

The speaker introduces a comprehensive forex education program available at quantumtradingeducation.com, which includes analysis, books, and links to other resources. A newly launched funded forex trading program offers students a unique opportunity to trade with funded accounts starting at $5,000 and scaling up to $2 million. This program allows students to trade using the company’s money without risking their own capital, providing a valuable path from education to live trading.

20:47

Details about accessing the funded trading program are provided: enrollment requires being part of the complete forex trading program. Interested individuals can learn more through the website or by contacting the speaker via email. A webinar about the funded program is scheduled for Thursday at 2 PM UK time. The speaker encourages students and potential participants to join the webinar for further information.

21:47

The speaker gives updates on where to find trading indicators, including platforms like MT4/5, NinjaTrader 7 and 8, and TradingView. Tradestation integration is coming soon, with Tradestation 9.5 linked to Interactive Brokers for discounted brokerage trading, and Tradestation Securities (version 10 and above) focusing heavily on stock trading. Separate sessions will cover forex and stocks, with upcoming webinars scheduled for Tuesday and Thursday, inviting participants to join and stay engaged.

By Anna Coulling – creator of volume price analysis