TradeTheIchimoku

Renko Ichimoku Strategy

BATS:AAPL   Apple Inc
16005 6 35
This Renko Ichimoku Strategy continues to perform well. As previously posted - more of a swing trade approach but can repeated across any instrument.

Apple             , by way of example, in 2013 has yielded 11 trades to date with 8 winners, 2 scratch trades and 1 small (-$3) loser. Excluding trading costs this would have netted a 65% profit with an average trade lasting 13 days.

Recap:

Use Renko Blocks (Close, Traditional, 3) and Standard Ichimoku settings (9, 26, 52, 26) but with Chikou Span, Kijun-Sen removed. We only require Tenken-Sen and the Kumo

When price/renko bars are above the kumo we seek long trades. When price/renko bars are below the kumo we seek short trades. When price/renko bars are inside the kumo there is no trade. We wait for prices to close above/below the kumo before taking signals

When renko bar crosses and closes above the Tenken-Sen enter long (assuming price above the cloud). When the opposite happens and we are below the kumo, enter short trades.

Trail your stop loss 1-2 renkop bars behind current 'live' bar

When the first renko bar that closes on the other side to the Tenken-Sen to the direction you are trading exit the trade. Ichimoku followers can use their judgement based on the positioning of the Tenken-Sen, angle of trend and distance from kumo to perhaps wait a further bar as sometimes these are pull-backs to Tenken-sen before a resumption of trade.

The few scratch trades on the chart were accompanied by a flat Tenken-Sen which is a signal of a ranging price action and could be an additional filter when entering/exiting

Re-enter trades when the renko bars re-cross in the direction of the trend.

If renko bars cross the Tenken-Sen while inside the Kumo, take the signal but wait for a close above or beneath the kumo before trading.

Enjoy!
I'm very interested in learning this technic, do you know some books where I can find more informations ?

Thanks
Reply
Hello , I set the Renko blocks with Close , Traditional , 3
and I got a graph very compressed . Where did I go wrong ?
https://dl.dropboxusercontent.com/u/1551523/Schermata%202015-02-18%20alle%2014.09.34.png

Thank You very much!
Reply
do u use it only D timeframe? it looks nice .. im going to give a try . rr seems good too.. how does it perform so far?

Reply
If anyone is looking at this for apple now I had to use a .3 instead of a 3. New to the site so may have something else screwed up but the .3 shows what's above for me.

Thanks for the technique.
+1 Reply
BizkitBR PRO MRGrassman
Thanks for that tip I was wondering how his looked like that
Reply
Realy nice strategy with this Renko technique.
Simple and easy to see.
Do u got similar technique for EUR/USD because u thought Renko was not available on that.
Reply
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