Use this powerful technique to day trade using the renko optimiser indicator
Many traders use multiple timeframes to trade, but few use this approach when applied to renko charts. Using the renko oprimiser indicator in multiple timeframes gives you a powerful edge, even more so when combined with the equivalent time based charts. This means you have the advantages of trading a non time based chart which reveals momentum, with a time based chart to which you can apply volume price analysis.
00:12
Introduction to oil trading and volume analysis
00:12
The speaker begins by introducing a focus on oil trading, highlighting its relevance due to a Volume Point of Control (VPOC) lesson involving a breakaway trade. Emphasis is placed on the importance of daily charts and multiple time frames, even for scalpers using shorter intervals like 15 seconds to 3 minutes. The current price action in the WTI futures market is analyzed, noting the significant resistance around the $42 per barrel level, which the market is repeatedly testing but struggling to break through.
01:16
The analysis continues with a description of a strong breakaway move from a congested price region, where the price rose from $41.75 to $42 with increasing volume and strong candles. Attention is given to the VPOC as a key fulcrum or seesaw point of the market, where heavy volume congestion occurs. Traders are advised to watch for a breakaway from this level supported by volume. Low volume areas are also important as they allow price to move more smoothly through these regions, acting like support or resistance based on volume distribution.
02:26
The discussion focuses on the accumulation/distribution indicator, which identifies significant price levels based on the thickness of lines representing resistance or support. The numbers indicate how often a price level has been tested, with higher numbers showing multiple tests. Volume behaves similarly to price levels, where low volume regions allow smoother price movement. The speaker emphasizes the necessity of monitoring the VPOC and volume profiles to understand market behavior, as these tools help identify key levels and probable price reactions.
03:31
Volume point of control importance in trading
03:31
The speaker discusses how market movements are influenced by volume regions. When the market moves into low volume areas, it tends to move quickly because there are few limit orders to slow it down. Currently, a congestion phase is building with increasing volume around a resistance level at 42.05. If the market breaks this level, there is a solid support platform beneath it. The volume rapidly decreases above 42.05, suggesting a straightforward move up to 42.10. Traders are advised to monitor this using multiple time frames for better insights.
04:59
Further analysis focuses on resistance and volume on shorter time frames such as three-minute and one- to two-minute charts. Volume attenuation below resistance signals a potential breakout. If the market breaks through the resistance with light volume ahead, it is expected to move swiftly through that area. This highlights the advantage of combining multiple time frames and volume point of control data to anticipate market moves effectively.
05:57
The concept of volume point of control is explained as a state of market equilibrium where price shows no strong bias. When this equilibrium is disrupted by a shift in volume, the market moves away from that level. The trend monitor turning blue indicates rising volume and price, signaling a breakout. Traders must decide when to enter the move—immediately on the breakout candle or after confirmation on shorter time frames. Using multiple time frames helps validate the move and identify potential pauses.
07:13
Daily oil chart resistance at $42 barrier
07:13
The discussion focuses on a key resistance level in the oil market around $42 per barrel, which the price has struggled to break through. If the price surpasses this level, it could trigger a significant upward run. The analysis includes both daily and weekly charts, highlighting the volume point of control and the impact of a previous massive plunge in oil prices. The plunge caused a spike in volatility, with prices dropping to around $4-$5 per barrel, followed by a reversal and an extended congestion phase. Market movements are influenced not only by technical factors but also by political developments, especially within the community sector.
08:08
Silver price surge and volume concerns
08:08
The weakness in the US dollar is driving metals prices higher, particularly silver, which is currently rising into the low 20s. The market has experienced an extensive congestion phase with significant volume around the volume point of control, followed by increasing volume as prices move away from this zone into low volume areas. Recent volume spikes are extreme, indicating unusual market activity. Despite a volatility trigger being breached recently, silver’s price has surged rapidly, prompting some profit-taking and suggesting an overly steep rise similar to patterns seen in previous market bubbles like dot-com shares or Bitcoin. While a crash is not predicted, the rapid ascent is unsustainable and may pause or correct soon.
10:08
Gold price trend and volume profile
10:08
The speaker discusses a potential upcoming market congestion and possible reversal, though the overall bullish trend remains intact and is expected to continue, especially with gold following a similar upward trajectory. The gold chart shows strong price movement with little volume resistance, approaching historic high levels near two thousand dollars. Despite volume data being off, the market exhibits strong underlying volume and momentum. The speaker also mentions checking the U.S. markets, noting current weakness and unusual movement patterns across key indices like YM, NQ, and ES.
11:49
US markets overview and NQ weakness
11:49
The segment discusses the recent shift in market behavior where the ‘enqueue’ is moving faster than the other two indices, reversing the previous trend of rising enqueue and lagging others. The enqueue is falling sharply, possibly due to major results being released, while the other indices are also declining but at a slower rate. The focus is on trading short positions, with the NQ seen as the most favorable due to its momentum, while YM is trading within a tight range and congestion areas. The enqueue has broken through key volume nodes and is moving through areas of congestion, indicating a solid move to the downside. The trend monitor reflects this with mostly bright red signals, indicating strong bearish momentum without transitioning to a bullish trend.
13:15
The downward trend continues to be confirmed, with the trend monitor showing dark blue but never bright blue, suggesting no bullish reversal. The discussion transitions to analyzing multiple Renko charts, switching from ES to enqueue on a 15-second timeframe to further assess the current market momentum and confirm the solid move to the downside.
13:57
Renko and tick charts for scalping
13:57
The speaker explains setting up a 22-tick Renko chart, which moves quickly, illustrating one of the benefits and challenges of trading with Renko charts. They also mention adjusting settings like 32- and 34-tick charts to find optimal tick values and highlight the power of combining non-time-based charts with volume and price analysis for trading.
14:35
The presenter describes the advantages of using both non-time-based charts like Renko and time-based charts simultaneously. This approach allows traders to analyze volume, price, and time together across multiple time frames, such as 15 seconds, 30 seconds, and one minute, enhancing market insight and decision-making.
15:04
Focusing on volume profiles and trend indicators, the speaker discusses how to interpret weaknesses, pauses, and downtrends in the market. Trend dots signal shifts in trend direction, and tools like accumulation/distribution help identify support and resistance levels, making this a powerful method for trading using both time and non-time-based charts.
15:58
The discussion turns to Renko optimizer settings, which vary by trading instrument due to their unique characteristics. Changing from one instrument to another, such as from the current market to Dow Jones or gold, requires adjusting tick settings because each market has a distinct trading profile.
16:31
The speaker emphasizes that each trading instrument has a unique tick profile, which affects how traders should set their charts. For example, gold’s tick profile differs significantly from the ES futures. These settings also change throughout the trading session, so traders must frequently re-optimize their charts to maintain optimal speed and accuracy.
17:21
Monitoring market reversals and trend changes, the speaker notes how trend dots change color to indicate shifts in momentum. Price action first shifts in the fastest charts before rippling through slower time frames. The Renko chart reflects these changes with pivots and congestion phases, highlighting the importance of multiple time frame analysis.
18:16
The video explains how price congestion often occurs near the volume point of control, where volume is heaviest. Breakouts from these areas require strong volume. Trend monitors reflect these transitions with color changes on different time frames, showing a gradual market shift that traders should watch carefully.
19:09
Renko charts are described as scalping tools designed for precision rather than forceful market moves. They smooth price action into bricks and reveal momentum patterns not visible on time-based charts, enabling traders to scalp efficiently by entering and exiting trades with surgical accuracy.
19:38
Unlike time-based charts, Renko bricks close based on a fixed number of ticks (e.g., 22), not elapsed time. This means bricks can form quickly or slowly depending on market activity, allowing traders to see momentum changes more clearly. This tick-based approach offers an advantage in capturing true price movement dynamics.
20:09
Trend monitor and volume point control
20:09
The discussion begins with an analysis of non-time-based charts like Renko and tick charts, focusing on momentum and volume point of control on a 15-second chart. There’s congestion building due to volume and price resistance, suggesting a potential pause. The presenter notes a trend transition and changes in trend monitors, indicating a developing upward movement as the price attempts to break through resistance levels.
21:08
The speaker explains the importance of choosing a primary trading window based on trading speed and preferences. Surrounding charts serve as alerts for faster or slower trends. A trend is observed moving upward, breaking through previous resistance that now acts as support, signaling a positive shift in market momentum. The trend monitor shows no immediate change on faster charts but remains useful for active traders.
22:03
A market reversal is identified with the trend turning blue, indicating an upward shift. The trend monitor’s sensitivity can be adjusted to either highlight or smooth out trend changes, allowing traders to control how much congestion or trend shifts they observe. Renko charts are confirmed as effective scalping tools for intraday trading, with adjustable settings to match market conditions and trading styles.
23:19
Renko and tick charts are characterized as primarily intraday scalping tools rather than for longer-term trends. A successful trade with a reversal is highlighted, showing real-time development and confirmation through volume and price agreement. A former resistance level now acts as support, validated by candle testing and volume injections, which suggests stable market behavior at that price point.
24:23
The analysis notes some slight weakness indicated by low volume and narrow candle spreads following a support test. Despite this, the Renko charts continue to develop positively. Moving to a one-minute chart reveals a significant volume wedge that the market must overcome, pointing to potential upcoming price action that traders should monitor closely.
24:49
VIX impact on index futures trading
24:49
The speaker emphasizes the importance of monitoring the VIX index for intraday scalping and index futures trading. The recent rally in the VIX caused indices to fall, but a reversal in the VIX is now driving indices to rally. Traders are advised to keep the VIX chart open on multiple time frames to anticipate market moves effectively.
25:47
If the VIX is not available on your trading platform, investing.com is recommended as a reliable resource for tracking VIX, bond prices, yields, and commodities. The speaker highlights the value of this site for staying informed about various market instruments.
26:42
When trading a scalp to the upside on short time frames, it’s crucial to observe volume patterns. Decent buying volume under price dips and resistance levels indicates potential support. The speaker points out specific resistance levels to watch, noting that breaking through these could lead to significant gains.
27:32
For traders using slower time frames, patience is key when waiting to break through resistance at around 750. Surpassing this level opens a large price range with little resistance or volume, presenting a lucrative trading opportunity with the potential for substantial profit.
28:02
Trading risk assessment and market signals
28:02
The speaker discusses analyzing different time frames in trading charts, emphasizing the importance of slower time frames like 5, 10, or 15-minute charts for strong market signals. They caution that external factors such as political events or unexpected news can disrupt predictions. The key to trading is assessing whether the risk taken justifies the potential return, based on chart analysis rather than fixed risk-to-reward ratios commonly cited online.
29:20
The discussion shifts to the importance of volume and price action in confirming market moves, highlighting that low volume can still allow quick price movements if there are no significant barriers. The speaker explains the inverse relationship between the VIX index and the market: when the VIX rises, markets typically fall, and vice versa. The VIX reflects fear and greed in the options market, acting as a ‘fear indicator’—a low VIX signals complacency and a buying opportunity, while a high VIX suggests panic selling and potential market bottoms.
By Anna Coulling – creator of volume price analysis
Ready to Master Stock Trading with Volume Price Analysis?
Join The Complete Stock Trading & Investing Program by Anna Coulling and unlock professional-level insights. Learn to spot institutional accumulation, avoid traps, and build consistent strategies using VPA. Lifetime access, Quantum indicators, and real-market examples—transform your investing today!
By Anna Coulling – creator of volume price analysis
Ready to Master Forex Trading with Volume Price Analysis?
Join The Complete Forex Trading Program by Anna Coulling and unlock professional-level insights. Learn relational strength, spot momentum shifts, and build consistent strategies using VPA. Lifetime access, Quantum indicators, and real-market examples—transform your forex trading today!