Renko DMI Chart Setup For ThinkOrSwim

[Renko_Ranger]

Here's the chart if anybody wants to give it a go: https://tos.mx/s6voyGT

This is a new scalping/day trading strategy for Renko using the DMI indicator & oscillator modified to include what I call the Momentum line.

*Renko bricks have been set to 5 ticks (adjust according to the instrument and price range you're working with)
*20 EMA
*Price Channel set at 3
*DMI indicator is at default with an added Momentum line set at 25
*DMI oscillator is set to default
*DMI indicator and oscillator combined into one lower study with the oscillator show plots for Osc/Hist/Zeroline unchecked; this allows the oscillator to paint the bars ONLY.

Entry Signals:
*Green Renko Brick breaks upper price channel and is ABOVE the 20 EMA
*Green DMI line crosses ABOVE the red DMI line and is ABOVE the Yellow ADX
*Green DMI line is also ABOVE the Light Purple Momentum Line
*Yellow ADX crosses ABOVE red DMI line @ or just below the Light Purple Momentum Line
*Red DMI crosses BELOW Light Purple Momentum Line

Exit Signals:
*When the Green DMI crosses back BELOW the Yellow ADX it's time to LOOK for potential exits; NOTE: the Green DMI can cross BELOW and then reverse back ABOVE, so you want to watch and take profits based on your trading style.
*Another option is; If/When the Green DMI crosses BELOW the Yellow ADX and the Red DMI exit and take profit.

Image Explanation:
*Look at the first purple arrow on the chart around 9:32am. Green Brick is 2 above the price channel, the Green DMI is ABOVE the Red DMI & the Yellow ADX.
*The Yellow ADX has just crossed the RED DMI at the Light Purple Momentum Line and the Red DMI has crossed BELOW that Light Purple Momentum line as well.

*Now look at the second purple arrow on the chart around the 10:27am mark. At this stage I'm focused on the lower study. The Green DMI crossed BELOW the Yellow ADX 8 bricks back.
*Price action then set a new high; however, the Green DMI barely crossed back ABOVE the Yellow ADX. The Green DMI also set a lower high while price action set a higher high (divergence identified and noted as a possible reversal and exit opportunity).
*Price action then set a lower high & the Green DMI continued downward direction causing an exit opportunity to be taken at that time.

The chart also shows a second opportunity for entry at around the 11:05-11:06 time frame; however I don't normally take a second entry on the same stock ticker unless the volume is pouring in. For me, 11:00am signals the beginning of nap time for the majority of the market (there's very little movement and most of the time tickers fall into a consolidation zone until the end of the day around 2:00-3:00; obviously that's not always the case so if there's a lot of activity still taking place I'll keep an eye on the chart).

 

[rlove1221]

Here's the chart if anybody wants to give it a go: https://tos.mx/s6voyGT
View attachment 1351

This is a new scalping/day trading strategy for Renko using the DMI indicator & oscillator modified to include what I call the Momentum line.

*Renko bricks have been set to 5 ticks (adjust according to the instrument and price range you're working with)
*20 EMA
*Price Channel set at 3
*DMI indicator is at default with an added Momentum line set at 25
*DMI oscillator is set to default
*DMI indicator and oscillator combined into one lower study with the oscillator show plots for Osc/Hist/Zeroline unchecked; this allows the oscillator to paint the bars ONLY.

Entry Signals:
*Green Renko Brick breaks upper price channel and is ABOVE the 20 EMA
*Green DMI line crosses ABOVE the red DMI line and is ABOVE the Yellow ADX
*Green DMI line is also ABOVE the Light Purple Momentum Line
*Yellow ADX crosses ABOVE red DMI line @ or just below the Light Purple Momentum Line
*Red DMI crosses BELOW Light Purple Momentum Line

Exit Signals:
*When the Green DMI crosses back BELOW the Yellow ADX it's time to LOOK for potential exits; NOTE: the Green DMI can cross BELOW and then reverse back ABOVE, so you want to watch and take profits based on your trading style.
*Another option is; If/When the Green DMI crosses BELOW the Yellow ADX and the Red DMI exit and take profit.

Image Explanation:
*Look at the first purple arrow on the chart around 9:32am. Green Brick is 2 above the price channel, the Green DMI is ABOVE the Red DMI & the Yellow ADX.
*The Yellow ADX has just crossed the RED DMI at the Light Purple Momentum Line and the Red DMI has crossed BELOW that Light Purple Momentum line as well.

*Now look at the second purple arrow on the chart around the 10:27am mark. At this stage I'm focused on the lower study. The Green DMI crossed BELOW the Yellow ADX 8 bricks back.
*Price action then set a new high; however, the Green DMI barely crossed back ABOVE the Yellow ADX. The Green DMI also set a lower high while price action set a higher high (divergence identified and noted as a possible reversal and exit opportunity).
*Price action then set a lower high & the Green DMI continued downward direction causing an exit opportunity to be taken at that time.

The chart also shows a second opportunity for entry at around the 11:05-11:06 time frame; however I don't normally take a second entry on the same stock ticker unless the volume is pouring in. For me, 11:00am signals the beginning of nap time for the majority of the market (there's very little movement and most of the time tickers fall into a consolidation zone until the end of the day around 2:00-3:00; obviously that's not always the case so if there's a lot of activity still taking place I'll keep an eye on the chart).

Looking forward to trying this out this week !!! I actually was using the other Renko you posted along with the Range Bars. I have about 5 charts open Renko, Range, Camarilla Pts and one timed that I switch between 1 min to 30 min. Might be overkill lol . You do great work I really appreciate everything you upload.!

 

[Darth Tradicus]

@Range_Raider Thanks for the strategy I scavenged a bit of code for ADX/DMI recently and added color to the slope of the ADX line. Thought I'd throw it on here if anybody wants it.

https%3A//i.imgur.com/yCBNVQb.jpg[/img]']

#
# TD Ameritrade IP Company, Inc. (c) 2008-2022
#
# Colored Slope and Momentum Line added /DarthTradicus

declare lower;

input length = 14;
input averageType = AverageType.WILDERS;

def hiDiff = high - high[1];
def loDiff = low[1] - low;

def plusDM = if hiDiff > loDiff and hiDiff > 0 then hiDiff else 0;
def minusDM =  if loDiff > hiDiff and loDiff > 0 then loDiff else 0;

def ATR = MovingAverage(averageType, TrueRange(high, close, low), length);
plot "DI+" = 100 * MovingAverage(averageType, plusDM, length) / ATR;
plot "DI-" = 100 * MovingAverage(averageType, minusDM, length) / ATR;

def DX = if ("DI+" + "DI-" > 0) then 100 * AbsValue("DI+" - "DI-") / ("DI+" + "DI-") else 0;
plot ADX = MovingAverage(averageType, DX, length);

"DI+".SetDefaultColor(GetColor(1));
"DI-".SetDefaultColor(GetColor(8));
ADX.SetDefaultColor(GetColor(5));

#Color ADX Slope
ADX.AssignValueColor(if ADX > ADX[1] then Color.WHITE else if ADX < ADX[1] then Color.RED else Color.GRAY);

#Plot the Momentum line
Plot Strengthline = 25;

 

[Renko_Ranger]

@Range_Raider Thanks for the strategy I scavenged a bit of code for ADX/DMI recently and added color to the slope of the ADX line. Thought I'd throw it on here if anybody wants it.

https%3A//i.imgur.com/yCBNVQb.jpg[/img]']

#
# TD Ameritrade IP Company, Inc. (c) 2008-2022
#
# Colored Slope and Momentum Line added /DarthTradicus

declare lower;

input length = 14;
input averageType = AverageType.WILDERS;

def hiDiff = high - high[1];
def loDiff = low[1] - low;

def plusDM = if hiDiff > loDiff and hiDiff > 0 then hiDiff else 0;
def minusDM =  if loDiff > hiDiff and loDiff > 0 then loDiff else 0;

def ATR = MovingAverage(averageType, TrueRange(high, close, low), length);
plot "DI+" = 100 * MovingAverage(averageType, plusDM, length) / ATR;
plot "DI-" = 100 * MovingAverage(averageType, minusDM, length) / ATR;

def DX = if ("DI+" + "DI-" > 0) then 100 * AbsValue("DI+" - "DI-") / ("DI+" + "DI-") else 0;
plot ADX = MovingAverage(averageType, DX, length);

"DI+".SetDefaultColor(GetColor(1));
"DI-".SetDefaultColor(GetColor(8));
ADX.SetDefaultColor(GetColor(5));

#Color ADX Slope
ADX.AssignValueColor(if ADX > ADX[1] then Color.WHITE else if ADX < ADX[1] then Color.RED else Color.GRAY);

#Plot the Momentum line
Plot Strengthline = 25;

@Darth Tradicus thanks for sharing, I'm going to update my chart with it this afternoon!

 

[Juno (Best Day EVER)]

Here's the chart if anybody wants to give it a go: https://tos.mx/s6voyGT
View attachment 1351

This is a new scalping/day trading strategy for Renko using the DMI indicator & oscillator modified to include what I call the Momentum line.

*Renko bricks have been set to 5 ticks (adjust according to the instrument and price range you're working with)
*20 EMA
*Price Channel set at 3
*DMI indicator is at default with an added Momentum line set at 25
*DMI oscillator is set to default
*DMI indicator and oscillator combined into one lower study with the oscillator show plots for Osc/Hist/Zeroline unchecked; this allows the oscillator to paint the bars ONLY.

Entry Signals:
*Green Renko Brick breaks upper price channel and is ABOVE the 20 EMA
*Green DMI line crosses ABOVE the red DMI line and is ABOVE the Yellow ADX
*Green DMI line is also ABOVE the Light Purple Momentum Line
*Yellow ADX crosses ABOVE red DMI line @ or just below the Light Purple Momentum Line
*Red DMI crosses BELOW Light Purple Momentum Line

Exit Signals:
*When the Green DMI crosses back BELOW the Yellow ADX it's time to LOOK for potential exits; NOTE: the Green DMI can cross BELOW and then reverse back ABOVE, so you want to watch and take profits based on your trading style.
*Another option is; If/When the Green DMI crosses BELOW the Yellow ADX and the Red DMI exit and take profit.

Image Explanation:
*Look at the first purple arrow on the chart around 9:32am. Green Brick is 2 above the price channel, the Green DMI is ABOVE the Red DMI & the Yellow ADX.
*The Yellow ADX has just crossed the RED DMI at the Light Purple Momentum Line and the Red DMI has crossed BELOW that Light Purple Momentum line as well.

*Now look at the second purple arrow on the chart around the 10:27am mark. At this stage I'm focused on the lower study. The Green DMI crossed BELOW the Yellow ADX 8 bricks back.
*Price action then set a new high; however, the Green DMI barely crossed back ABOVE the Yellow ADX. The Green DMI also set a lower high while price action set a higher high (divergence identified and noted as a possible reversal and exit opportunity).
*Price action then set a lower high & the Green DMI continued downward direction causing an exit opportunity to be taken at that time.

The chart also shows a second opportunity for entry at around the 11:05-11:06 time frame; however I don't normally take a second entry on the same stock ticker unless the volume is pouring in. For me, 11:00am signals the beginning of nap time for the majority of the market (there's very little movement and most of the time tickers fall into a consolidation zone until the end of the day around 2:00-3:00; obviously that's not always the case so if there's a lot of activity still taking place I'll keep an eye on the chart).

this is very cool thank you for sharing. can i ask 2 questions? 1. can you pls describe how you use the dashed purple line in the upper chart? you call it my price line. 2. you menion red DMI crosses below light purple momentum line but I cannot find any light purple momentum line in my lower indicator. i have a yellow line at 25 for the adx- is that the momentum line? thank you. i cant wait to test this system.