Explosive Ichimoku Renko Trading Strategy | How To Swing Trade Stocks Like A Samurai

If you are tired to study charts with overloaded
indicators, and just want to trade price action with less stress and guessing, then this video
might help you do that. I don’t know if you are familiar with Renko
charts or with Ichimoku cloud, but let me tell you, those 2 techniques combined will
give you some decent entries and will filter a lot of market noise. So, in the following minutes, we’ll go full
Japanese mode and we’ll discuss about Renko and Ichimoku, and how you can combine these
2 approaches in a trading strategy. Before we continue, if you are new to the
channel, make sure you subscribe, turn on the notification bell and leave a like to
show your support. Renko and Ichimoku are one of the many traditional
Japanese forms of analysis. Renko charts are an overlooked way of analyzing
price data and charting markets. Renko charts eliminate the time component
of trading and only focus on the price itself. Potentially, Renko charts can filter out a
lot of the market noise and display the price in a much more organized way that is simpler
to interpret. Conventional candlestick charts generate a
new candlestick every hour, 4 hours, day, week or another time interval the trader chooses
as his period setting. Renko charts, on the other hand, are not time-based
and they don’t use candlesticks, but “bricks.” A trader might set 1 Renko brick equal to
10 points which mean that the Renko chart will show a new brick every time price has
moved 10 points in one direction. For this strategy, we’ll use 100 points
for one brick, because i want to eliminate the noise as much as possible. The second component of our strategy is the
Ichimoku indicator. An Ichimoku chart is a trend-following system
with an indicator similar to moving averages, which offers a unique perspective of support
and resistance. I don’t like to plot all the components
of Ichimoku, because it’s messy and a quite confusing, so i only focus on the cloud and
on the lagging span. The lagging span allows us to visualize the
relationship between current and prior trends, as well as to spot potential trend reversals. When lagging span is above the current price,
this indicates that current prices are higher than previously, and indicates a bullish bias
• When lagging span is below the current price, this indicates that current prices
are lower than previously, suggesting a bearish bias
• When lagging span is near the current price, this indicates a trading range The most important component of Ichimoku is
the Kumo cloud, formed from 2 lines (span A and span B), which act as major areas of
dynamic support and resistance. Here are the main 4 rules we will apply later
in our strategy • the longer the price stays below/above
the Kumo cloud, the stronger the trend is( so for strong and reliable trends, we want
the price to stay above or below the cloud for long periods of time and we don’t want
to see the price cutting through the cloud multiple times in a short period of time
• When the cloud is wide, the expected support or resistance is strong. • When the cloud is thin, the expected support/resistance
is weak. • The last important rule is that you should
never trade inside the Kumo cloud. So when the price trades inside the Kumo,
no matter if you anticipate that it will break in one direction, you must stay disciplined
and wait for the price to exit the cloud. Now, when we apply Renko charts with the Ichimoku
cloud, we get a very clean, clear and simple way to analyze markets. Applying the Ichimoku to the Renko charts
but only using the 2 components that we discussed, Ichimoku cloud and the lagging span, will
offer you a simple and effective trend following strategy. Here are the basic rules of this trading approach:
• We use the 100 Renko brick to identify key support/resistance levels, to determine
the market trends and to place our stop-loss and take-profit targets
• We use Kumo cloud to determine the main trend
• When the price enters the Kumo cloud and breaks its upper wall upward, we have a bullish
trend • When the price enters the Kumo and breaks
its lower wall downward, we have a bearish trend)
• We can confirm our bias with lagging span, by following its position above or below the
Kumo cloud. The most reliable opportunities appear when
3 conditions are met simultaneously: For buy entries a new green Renko bar appears
above the Kumo could The Kumo cloud is green and wide
And the lagging span is above the Kumo cloud And for sell positions
A new red Renko bar appears below the Kumo could
The Kumo cloud is red and preferably wide And the lagging span is below the Kumo cloud So let’s analyze this chart. These are the perfect market conditions, with
green Renko bars above the green Ichimoku cloud, and the lagging span above the Kumo
cloud. Look how easy you spot the upward trend. Now, I don’t know about you, but when I
look at this chart, I have zero temptation to short the market. I can see so clearly that the trend is up,
with greens everywhere, and all I have to do is to go with the flow and enter long. There are many long opportunities here: a
possible buy around here, another one here, riskier because the market hasn’t corrected
much, another one here, right about the previous support level, also confirmed by the lagging
span, another entry here, after the market found support from the previous breakout level,
and another one here after a small pullback. Remember that these are 100 point bricks,
so this is similar to a swing trading style. Here is another example. Do you buy here? No, because the Kumo cloud is red. So don’t try to jump early in the trade. Do you buy here or here? Also, no. The cloud is still red. Here is when the first buy entry occurs. And yes, it was a losing trade, or a breakeven
trade at most, because the market formed another green brick and reversed. Another long appeared here, and this one was
a great one. Pay attention to the lagging span, which stayed
above the Kumo cloud, confirming our bias. We have another buy opportunity here, riskier
because the market didn’t record a significant correction. I personally like to see a correction of at
least 2 or 3 bricks before re-entering. Here was another opportunity to buy, and the
market indeed continued its direction. Let’s see how a short signal works on a
tesla chart. So here, the downtrend begun, but the Kumo
was still green, so you might say we waited a little bit longer to join the downward move. Here is when we had the green light to short
the market and from now all you have to do is to manage the trend accordingly. We had another chance to reenter after a small
pullback, and another one here. Other 2 short trades appeared here and here. All this time, the lagging span remained below
the cloud and confirmed the trend. In real time, we have contradicting signals. So the price broke through the cloud, which
is still red, and the lagging span also made its way on the other side of the cloud. So, at the time being, no short here for now. Now, let’s see how we deal with choppy and
ranging markets. This looks…ugly and not tradable. First, here is my most important rule. If I see the lagging span that is going up
and down though the cloud, I read this as market indecision, and I ignore the setup
and search for better entries. Pay attention at the lagging span here, it
broke up, broke down, stayed inside the cloud. It’s all a big mess, and this is not what
a trend looks like. So, no trades here. Another clue is the Kumo cloud. I want to see consistent red, or consisted
green. I don’t want to see the cloud changing its
color often. Look here, we have red, green, red, green. Clearly the market is in indecision and if
I see the cloud that is changing its color, then maybe it’s better not to trade this
market at all. Also, the Renko bars. Look how choppy the market seems. First the Renko bars are unable to record
higher highs or higher lows, or lower lows and lower highs, the ultimate definition of
a trend. But they also cut though the cloud easily. So no signs of dynamic support or resistance
from the cloud or from the Renko bars. So, pay attention to these filters because
they can make the difference between a bad trade and a good one. Now, if you found value and learned something
new, make sure you subscribe to our channel, turn on the notifications so you don’t miss
future uploads and leave us a like to show your support. Until next time.

90 thoughts on “Explosive Ichimoku Renko Trading Strategy | How To Swing Trade Stocks Like A Samurai

  1. Learned a new thing. Going to apply soon. What is the success ration of this set up. I mean good trade out of 10 in a trending market.

  2. Great info! Could this be used day trading indices futures though? What would be a good renko setting? ATR maybe?

  3. Great How to video, I am also creating how to video about make money off the stock market and teaching about how to trade stock and your video gave me a idea, thank you 🙂

  4. Great video. I have a question. I’ve tried to type in 100 for the renko settings and it doesn’t show any bars on the chart? I have tradingview pro+ any ideas why?

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  6. The reason for having a trading strategy is to remove the possibility of you making emotional or irrational decisions. Decision is rather made based on predefined parameters that are developed with clear thinking. Another is to make it possible to benefit from repetition. Without this type of strategy, you probably won’t know what worked or why. Even if you did, it would be hard to repeat. Trade with Mr.Brandon and never encounter loss on binary options trading.
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  7. In which instruments this strategy apply. If stock value is 200 or 250 or like this then how can use 100 Bricks? What is time Frame?

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  9. Faudrait que j'apprenne l'anglais 😂 Ma prof avait raison 😂 quelqu'un peut me dire en fr si la vidéo on peut la traduire en français ?

  10. Brilliant! Very interesting as well!
    Just two difficulties with this strategy : the Ichimoku even if one of the most famous indicators, ALWAYS sounds CONFUSING to me. I dropped the idea of using it in my strategy for its appearing lack of clarity!
    On the other hand, I never succeeded to install correctly the Renko indicator, which is also very famous. I am using MT4. If someone knows how to do this, it would be very appreciated.
    Anyway, very nice video with especially clear explanations and most of all illustration of the strategy with nice examples of when to long/short and when absolutely not to open any trade. To close a trade, can you confirm that the condition is when you have a very FIRST red Renko brick in an uptrend or a very FIRST green Renko brick in a down trend?

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  12. Which exact indicator do you use in Tradingview? Normal ichimoku? Kumo? I have more lines, but want the same like you… Thanks!

  13. All that “noise” the candles make can and will show you when liquidity has been wiped out at a specific level.

  14. I like your strategy, you are a good trader. Some YouTube video once made reference to <[email protected] g mail . com> I contacted him and he has proven to be one of the very best. His strategy is so consistent and has made me so much profit in a short time. I think what every beginner needs is an exceptional trader as mentor. Good luck guys

  15. can i costumize renko candles, ichimoko indicator and kaggin span on thinkorswim? if not what free platform can i use?

  16. If you learned something new, make sure you Subscribe & Like this video (it only takes 5 seconds but will help us a lot)
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  17. Hi, can you please tell me how to choose the brick size. I chose 10 on my stock. it showed few bricks and few days. I am confused. Does it have anything to do with average trading range? Thanks

  18. Excellent video! I appreciate your work, really.

    But I have a question: how do I put the Renko chart in 100 blocks?

    I use TradingView in Pro+ Plan.

  19. Loved the video and am currently testing it on a paper trading account. Should be working great given the historical data, but I have a question. When looking at the lagging index if it hasn't gone out of the cloud should you trade when you see the second bar or not. What I mean is do I need to be concerned with where the lagging indicator is against the cloud or only against the graph itself.

    Thanks again, watched most of the other videos the channel is great! Keep it up 😀

  20. Nice video, I personally love it, cause I don't really have all the time to deal with bulk information. So it filters all the unwanted information and leaves me with less information to act on. It helps me understand price moves and establish more objective and repeatable approach .

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  22. Great channel mate and nice video ! I have a problem with renko, the charts look different on different time frams which is weird considering theyre supposbly not time based. Newly formed bricks disapear when trend changes ans also dont show up when price changes because its waiting for the time. Do you know if this is normal ? maybe you can make a video on how to deal with that. thanks

  23. Hi man, you awesome!. I have been created an algorithm strategy and your channel help me a lot. Thanks for everything!, God Bless u

  24. some people may have more knowledge than you do, but suck at helping others as they dont have your organized thought-out teaching process with the illustrations you make. I really apreciate the efforts you're making here. Much respect.

  25. Ichimoku Cloud parameters are default at (9,26,52,26) ? My Lagging Span on the Renko chart does not seem to be displaying correctly. The Lagging Span is TOO close to the bricks and follows it very closely – its not like your video where the lagging span line and renko bars move in different directions at different times.

  26. All looks good and easy on an historic chart, in live session how to predict the market is going to be choppy or trending..first challenge with renko is it keep erasing and recreating the bricks, the time does has the significance here since you still need an interval to plot the whole thing hence renko is not truly time independent..

  27. Thanks god I found you! Your videos are really excellent!!! Could you make a video or show me how to chose brick size? Thank you very much!

  28. Very smooth presentation. Question: How do you delete all the indicators except the lagging indicator? Thanks.

  29. This video is so good ! Thank you so much for this content. I've a question i'm trying this strategy, but what's the best timeframe to trade with it ? I'm trading on tradingView, and i think that 15min, 5min and 1min are the best. But we need only one timeframe to use this strategy ?

  30. Hello!

    I definitely enjoyed the video and subscribed to your channel. The commentary/explanation of the subject matter is clear and succinct which is refreshing as some 'explainer' videos on other channels are incoherent in some cases.

    I had never considered the Renko-Ichimoku point of view before and have begun to test its use as of yesterday.

    It seems me using a Fibonacci profit target at a 1:1 and 2:1 (usually a 161.8 level) ratio would be the best exit strategy here.

    An alternative is to use the Parabolic SAR and look for the reversal dot to exit.

    Do you agree or have a different idea on the matter?

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