How to use the renko optimizer indicator for NinjaTrader to day trade emini futures

How to use the renko optimizer indicator for NinjaTrader to day trade emini futures

Trading index futures using non time based charts is a great approach as it smoothes out the price action, but here we blend this approach using multiple charts and with time charts also.

00:12

Introduction to Renko workspace

00:12

The speaker has switched to the Renko workspace, which combines non-time-based and time-based charts. This methodology blends different chart types, focusing on analyzing market data beyond traditional time constraints. The speaker also adjusts the interface by moving the chat box out of the way to better view the charts.

00:47

Setting 15-second time frames for indices

00:47

The speaker discusses monitoring three indices—YM, NQ, and ES—all set to a 15-second interval, which is a fast timeframe. They demonstrate aligning the Renko chart’s timeframe to 15 seconds to match the time-based charts for consistency. This alignment helps identify the optimal Renko brick size for trading the YM index on a 15-second chart.

01:21

Renko optimizer and brick size explained

01:21

The video explains a time base chart set at 15 seconds and its corresponding Renko chart above. The Renko optimizer determines the optimal brick size for trading at this speed. The number six refers to six points, as the system automatically detects the minimum price movement specific to each contract, such as one point for YM and ticks for NQ and ES.

01:59

Adjusting tick sizes for different indices

01:59

The speaker explains how they adjust trading intervals, moving from one time frame to another such as 15 seconds, and observes the number of ticks within these intervals. They highlight the advantage of trading based on time frames, emphasizing the flexibility and speed gained by using different tick counts across multiple indices.

02:30

Analyzing volume point control and volatility

02:30

The discussion focuses on analyzing the time base chart to understand current trading conditions. The market is trading around the volume point control, indicating no unexpected movements. A recent volatility trigger and volume changes suggest that either consolidation or a reversal to the upside is expected.

02:58

Price resistance and accumulation distribution

02:58

The segment discusses price base resistance and support levels in the market as indicated by the accumulation distribution indicator, represented by a thick dashed line. This indicator highlights strong resistance zones where price has reacted multiple times. Minor support and resistance levels are also identified below the main resistance, fluctuating between acting as support or resistance. Additionally, the volume point of control histogram is introduced, showing volume-based support and resistance analogous to price-based levels. The volume histogram reveals areas of low volume where price can move swiftly, indicating a strong breakaway in the market with light volume and potential minor resistance ahead.

04:20

Trend monitor and tick speedometer indicators

04:20

The speaker discusses using a price-based resistance level along with a trend monitor indicator that has shifted to blue, indicating a favorable condition. They introduce the tick speedometer indicator, which measures market participation and activity levels. The preferred signals are orange or green, indicating strong activity and good price action, which is currently observed. However, while activity is strong on some instruments like the YM, there is very weak participation on the NQ, with the tick speedometer showing low activity and resistance levels holding firm.

05:47

Market activity and participation levels

05:47

The discussion focuses on market injections and volume trends, noting low volume currently but a more promising outlook on the ES with supportive trend indicators showing upward movement. The fluctuating tick speedometer between green and orange signals healthy market activity, while red indicates congestion and low volume typical of congestion phases. The Renko chart reflects a recent price run-up, illustrating significant moves in contracts that represent notable value changes in both micro and larger Dow contracts.

06:48

Trend dots and trend monitor relationship

06:48

The segment explains the interaction between the trim monitor and the trend dots in market analysis. Trend dots change first, signaling initial market movements, while the trend monitor changes second, providing a more deliberate confirmation. This relationship helps identify market trends, as seen when the trend dots turn red during a strong rally and the trend monitor follows, indicating a new downward leg. Additionally, the accumulation distribution indicator offers strong price support, reinforced by pivot points below, supporting the analysis.

07:44

Combining indicators for market analysis

07:44

The speaker discusses testing the 2600-2650 level, indicating that surpassing this range could lead to a higher trading phase. They emphasize the importance of combining multiple indicators, such as volume, price analysis, and both time-based and non-time-based charts, while also considering related markets. The current market shows no clear trend, with sluggish movement and heavy red indicators, suggesting low participation and tight trading conditions. This environment may not favor broad market rallies but could still suit scalpers.

08:41

Scalping strategy and trading pace discussion

08:41

The speaker explains the nature of scalping trading, which involves entering and exiting trades quickly, sometimes in seconds or a few minutes. Scalping typically involves trading small amounts frequently, with some traders making dozens or even hundreds of trades per day. While it can be enjoyable and keeps traders alert, it is not suitable for everyone.

By Anna Coulling – creator of volume price analysis