Chart: SPY Renko Mvg Avg updated.cht
The charts for the InterChart Tools Renko Bar examples described in this help file are installed in the "InterChart Tools Renko Bars Examples" subfolder of the NeuroShell Trader folder.
This chart shows how two different moving averages of Renko bars can build a successful mechanical trading system.
Different moving averages of Renko Close Bars can create a mechanical trading system.
The chart on top displays a 10 period Simple Moving Average of a 0.25 Renko Close Bar of the S&P 500 E-Mini and a 25 period Linear Weighted Moving Average of the same Renko close bar.
The principal here is that you can only enter a long trade if the Renko high and low are above both averages and both momentum indicators in the bottom window are green (greater than 0).
You can only enter a short trade if the Renko high and low indicators are below both averages and both momentum indicators in the bottom window are red (less than 0).
You must exit a long trade if the momentum indicators in the bottom window are red AND green or if both are red. You must also exit a long trade if the Renko high falls below one of the averages
You must exit a short trade if the momentum indicators bottom window are red AND green or if both are green. You must also exit a short trade if the Renko low moves above one of the averages.