Trade futures using renko and time charts on NinjaTrader

Trade futures using Renko and time charts on NinjaTrader

Using renko charts in combination with time-based charts is a terrific way to trade futures. This blends the advantages of a time-based chart and the application of the volume price analysis methodology with using a non time-based chart such as renko which not only reveals momentum but also smoothes the price action. Finally, using them in multiple timeframes makes this approach even more powerful.

00:10

Overview of Renko and volume analysis

00:10

The speaker provides an overview of the current status on the YM (likely a market index or chart), noting progress through a specific region and breaking away from volume pointing controls. Despite a pause point, low volume at the top suggests a favorable setup for a potential rally higher. The trend monitor remains consistently positive, indicated by a blue color throughout.

00:43

Introduction to Renko optimizer tool

00:43

The speaker encourages not to hesitate in joining ongoing trends and demonstrates using Renko charts across different time zones. They show the setup on the ES (S&P 500) index, explaining how the Renko optimizer works by simply selecting the desired timeframe to analyze price movement effectively.

01:16

Selecting optimal brick size by timeframe

01:16

The speaker explains how to match time frames with brick sizes for trading charts. Starting with a 15-second chart, the recommended brick size is 5 ticks. Switching to a 30-second chart, the optimal brick size changes to 7 ticks, which equates to nearly two full points. On a one-minute chart, the brick size increases to 11 ticks, corresponding to almost three full points. This process shows how brick size adjusts based on the selected time frame to optimize trading signals.

02:19

Multiple timeframes and Renko sizes explained

02:19

The video explains a time-based array showing multiple time frames such as 15 seconds, 30 seconds, and one minute alongside multiple Renko charts. It highlights the use of a Renko optimizer in NinjaTrader that calculates the optimal brick size automatically, removing the need for manual guessing. Trend dots are also featured, which work effectively in combination with a trend monitor to enhance trading analysis.

02:48

Combining trend dots with trend monitor

02:48

The discussion explains how trend monitors and trend dots work together on a fast 5/5 brick size chart. Trend dots react quickly to price changes, often changing color first, while the trend monitor provides a more stable, considered view. This combination is powerful because it balances sensitivity and stability. Despite some minor pullbacks indicated by transitional gray and red trend dots, the trend monitor supports the overall movement, allowing traders to confidently trade when both indicators align.

03:43

Advantages of Renko charts over time-based

03:43

The speaker explains the use of combining volume price analysis with smooth price action on Renko bricks in charts. This blend offers the benefits of volume price analysis while leveraging the advantages of non-time-based charts like Renko. Renko bricks build based on a fixed number of ticks, independent of actual time, closing and moving only after a set number of ticks occur, which smooths out price action and enhances trading insight.

04:47

Example of volume price analysis on gold

04:47

The speaker concludes the segment by highlighting a recent analysis of gold trading. They mention a bullish outlook on gold at 1701, with the price now trading at 1740, demonstrating that volume price analysis is effective. This serves as evidence that their approach to market analysis is valid and not merely theoretical.

05:16

Availability of trading indicators and platforms

05:16

The speaker explains that all the books related to trading indicators are available on Amazon in both Kindle and paperback formats. The trading indicators themselves can be found on QuantumTrading.com and are compatible with multiple platforms including MT4, NinjaTrader 7 and 8, TradingView, and soon TradeStation. Two versions of TradeStation will be supported: TradeStation Global, which partners with Interactive Brokers offering a powerful combination of platform features and low-cost brokerage, and TradeStation Securities versions 9.5 and 10, which also support all the indicators and advanced features like RadarScreen. Additionally, Forex education programs are available at QuantumTradingEducation.com.

06:48

In response to a question, the speaker clarifies that the indicators shown, including Renko and Trend Dots, are Quantum Trading indicators available on QuantumTrading.com. Trend Dots are versatile and can be used on both Renko charts and normal charts, with the speaker personally finding them effective on Renko and tick charts.

07:18

Using trend dots on various chart types

07:18

The speaker explains their preference for using charts, specifically mentioning Renko charts. They clarify that Renko charts can be applied to any chart type, whether conventional time-based or non-time-based charts like regular or attic. The process of changing the Renko size is done through the Renko optimizer by selecting different times, such as 15 seconds or other standard options.

07:54

Adjusting Renko size by timeframe

07:54

The speaker explains how to select the time frame for optimal brick size in a charting tool. They mention that slower time frames result in larger brick sizes, while faster time frames produce smaller bricks. The speaker typically uses a combination of time frames, such as 15 seconds, to lay out the bricks effectively.

08:26

Applying Renko to different markets and futures

08:26

The speaker discusses optimal time intervals for trading, suggesting combinations like 30 seconds and one minute. They note that the best interval depends on the market and contract being traded, mentioning that spreads vary across instruments such as YM futures, gold, silver, and oil. The tool or method referenced adapts the tick size to suit the specific contract and quote for optimal trading.

08:56

Closing remarks and next Forex session info

08:56

The speaker addresses questions about pricing in dollars per ounce or pips and confirms that spot trading is also possible. They thank the audience, invite them to the next Forex session on Tuesday at 7:45 London time, and conclude with well wishes.

By Anna Coulling – creator of volume price analysis