Range Bars - DMI - Elegant Chart Setup For ThinkOrSwim

[Renko_Ranger]

I’ve been doing good with your prev set up. Can you screenshot your set up please ? Thanks !

Here is the screenshot and chart setup I'm currently working with...

https://tos.mx/uyNZ2hA

I switched over from Renko to Range Bars for the simple reason that Renko leaves out too much market noise (if that's possible) For example, when a ticker goes into consolidation, Renko charts stop moving altogether (sure the price fluctuates within the range, but seldom prints a new brick), this makes it difficult to determine what the overall market is doing. Range bars still eliminate the unnecessary market noise yet provide you with more information in the form of wicks while still removing the time element from the equation.

With Renko, if you set a 5 tick brick, once the first brick paints, the next brick has a 15 tick window of possible movement (a 10 tick brick gives the next brick a 30 tick window, etc.) With Range Bars you get to see more of the price action and can make better decisions. I've sat in trades on Renko charts for hours without a single new brick printing (this also causes any indicators to stop providing relevant info) only to have it eventually turn against me and stop me out, whereas with Range Bars I can see the price action during consolidation and the indicators often provide better info on which way the stock is headed which allows you to take profit earlier and move on, or wait it out.

I also don't like the fact that Renko doesn't encompass the entirety of price action. I've watched 10 tick Renko bricks rise/fall 9 ticks, before heading the other direction and there's NO history of that 9 tick movement (the trader never knows it happened). That means you never really know where true support and resistance are, or what the actual high and low of the session is. While I did have success with Renko, I've found that the Range Bars allow me to find slightly better entries and exits, as well as providing me with better info to determine divergence.

Good luck with whichever trading style you prefer to work with!

 

[Gellidus]

Nice, thanks for sharing. May I know what range did you set per bar?

 

[Renko_Ranger]

Nice, thanks for sharing. May I know what range did you set per bar?

The range is set to 5 ticks, but you can adjust that to fit the instrument you are trading.

 

[chrisbene06]

I have been using range chart for years, but I still can't figure out how to deal with the whipsaw situations. Range charts is extremely easy to trade during high volatility times like fomc, but on a normal day, which is like most days, indicators create tons of entry signals and many of them fail to fruition. I have tried adjusting tick size, average lengths of indicators, incorporating volumes etc, but still not successful...I don't think this is an issue with the range chart though, time-based charts are even harder for me.

 

[Renko_Ranger]

I have been using range chart for years, but I still can't figure out how to deal with the whipsaw situations. Range charts is extremely easy to trade during high volatility times like fomc, but on a normal day, which is like most days, indicators create tons of entry signals and many of them fail to fruition. I have tried adjusting tick size, average lengths of indicators, incorporating volumes etc, but still not successful...I don't think this is an issue with the range chart though, time-based charts are even harder for me.

@chrisbene06 have you tried using Renko charts...? I use both depending on the day...but more Renko than Range on average... https://usethinkscript.com/threads/renko-matrix-chart-setups-strategies-for-thinkorswim.13164/

I'm actually putting together another Renko strategy as I type...started paper trading it just before the holidays...waiting to see how well it does before sharing it, but so far it appears promising.

 

[graci117]

@chrisbene06 have you tried using Renko charts...? I use both depending on the day...but more Renko than Range on average... https://usethinkscript.com/threads/renko-matrix-chart-setups-strategies-for-thinkorswim.13164/

I'm actually putting together another Renko strategy as I type...started paper trading it just before the holidays...waiting to see how well it does before sharing it, but so far it appears promising.

Thanks! I have been liking this setup. Can't wait for the next strategy.

 

[Renko_Ranger]

Thanks! I have been liking this setup. Can't wait for the next strategy.

I just posted a new Renko DMI strategy that can be found here: https://usethinkscript.com/threads/renko-dmi-setup-strategy.13969/

@rlove1221 you might be interested in this as well.

 

[sonnytrader]

I just posted a new Renko DMI strategy that can be found here: https://usethinkscript.com/threads/renko-dmi-setup-strategy.13969/

@rlove1221 you might be interested in this as well.

great help....can you explain diff between elegant oscillator and DMI oscillator thx......also do u use any macd

 

[Renko_Ranger]

I can't explain all the technical differences between various oscillators; they each take different data to indicate what price action is currently doing. For me it comes down to how I want to digest that information visually. In other words, which oscillator paints a clearer picture for me to take action on. I've used MACD in the past, but it's not one of my go-to indicators...at least not with Renko.

 

[MagicQuotes]

In reactions to the the discussions above: As a reminder Note the platform capacity in the TOS explained. thinkorswim as follows: [https://tlc.thinkorswim.com/center/howToTos/thinkManual/charts/Chart-Aggregation/Range-Charts
Instead of Either/Or You could set up a flexible chart watching the same stock, option, or bond in several different modes and just click using the arrow button a the top (Go to next cell, gadget on all flex chart setups) as I did today on an option.
1. a 1 day 5 min Time chart 2. A one day Range Chart set to 25 ticks (transactions) 3. Tick Chart set to 57 ticks
(note all of these show the volume characteristics associated with these chosen price accumulation selections) and finally I have the 4. One day Renko Range chart set to a PriceRange of ($5.00) 5 ticks bricks that filters out the volume and strictly shows the price fluctuations for today on my option. This embraces all the features available on TOS with the exception of an additional ATR subset selection option for a Range or Renko bar chart ( adds a layer of filtering I do not need. since if I want to look at an ATR I can just add an ATR trailing stop to the time chart which I do sometimes to do something that Cathy Woods does not believe in! which is risk management). It took me a good deal of time to really grasp and utilize the options so that are available. I needed to go back to basics and ask myself the question: What do I want to look at? and then begin setting up the charts. Best to all. Great contributions by everybody in the thread, especially @Range_Raider - keep thinking out of the box and expand it!

 

[Renko_Ranger]

Excellent advice! I never really thought about using the flex chart in that capacity. I'll definitely look into it more and try it out. Thank you for joining the thread and contributing, very much appreciated! I look forward to giving this a go tomorrow!

 

[gn5150]

I have been using range chart for years, but I still can't figure out how to deal with the whipsaw situations. Range charts is extremely easy to trade during high volatility times like fomc, but on a normal day, which is like most days, indicators create tons of entry signals and many of them fail to fruition. I have tried adjusting tick size, average lengths of indicators, incorporating volumes etc, but still not successful...I don't think this is an issue with the range chart though, time-based charts are even harder for me.

multi-aggregation period analysis
custom, not regular renkos #iykyk

 

[bmn]

In reactions to the the discussions above: As a reminder Note the platform capacity in the TOS explained. thinkorswim as follows: [https://tlc.thinkorswim.com/center/howToTos/thinkManual/charts/Chart-Aggregation/Range-Charts
Instead of Either/Or You could set up a flexible chart watching the same stock, option, or bond in several different modes and just click using the arrow button a the top (Go to next cell, gadget on all flex chart setups) as I did today on an option.
1. a 1 day 5 min Time chart 2. A one day Range Chart set to 25 ticks (transactions) 3. Tick Chart set to 57 ticks
(note all of these show the volume characteristics associated with these chosen price accumulation selections) and finally I have the 4. One day Renko Range chart set to a PriceRange of ($5.00) 5 ticks bricks that filters out the volume and strictly shows the price fluctuations for today on my option. This embraces all the features available on TOS with the exception of an additional ATR subset selection option for a Range or Renko bar chart ( adds a layer of filtering I do not need. since if I want to look at an ATR I can just add an ATR trailing stop to the time chart which I do sometimes to do something that Cathy Woods does not believe in! which is risk management). It took me a good deal of time to really grasp and utilize the options so that are available. I needed to go back to basics and ask myself the question: What do I want to look at? and then begin setting up the charts. Best to all. Great contributions by everybody in the thread, especially @Range_Raider - keep thinking out of the box and expand it!

Would you please share your layout? I will paper trade to understand this a bit better. thanks