If you day trade and prefer a more advanced means of viewing price action, then Renko bars ninjatrader 8 could be what you're looking for. While candlesticks are tied to time frames, Renko charts are purely focused on price action. Due to this, they are ideal for filtering out market noise and identifying trends more readily.
Here, we will explain how Renko charts function and present some easy yet powerful techniques that you can apply within NinjaTrader 8 while day trading.
What Are Renko Bars?
Renko bars are one form of price chart that removes time from the picture. Each brick (or bar) only forms after the price has moved a specific distance, either up or down. So, if your brick is 10 points, a new bar only forms when the price has moved 10 points in one direction. This means you only need to consider the market direction rather than sideways movement or small fluctuations.
Renko bars Ninjatrader 8 are straightforward to set up. You can select the size of the bricks, offset, and even whether to use or not use wicks. This makes the platform ideal for Renko-based strategy.
Why Do Day Traders Prefer Using Renko Bars?
Day traders prefer using a Renko chart as it allows them to:
Easily spot steep trend changes
Eliminate noise during wild sessions
Spot support and resistance areas
Enter and exit positions with more confidence
Because you're trading off filtered price data, you can eliminate emotional trades on tiny, choppy price action that tends to clutter time-based charts.
Strategy 1: Moving Average Trend Following Renko
The moving average trend-following Renko strategy is among the most popular Renko strategies used in NinjaTrader 8.
How to Use It:
Draw two EMAs (e.g., 9 and 21) on your Renko chart.
On crossover of short EMA (9) over long EMA (21), buy.
On the crossover of the short EMA below the long EMA, sell.
Verify entries against the trend of the Renko bars.
It is applicable to Renko charts since false signals are minimized through the price filtering effect.
Strategy 2: Renko Breakout Structure
Trading breakouts within consolidation zones is another common technique.
How To Use It:
Look out for price moving across a narrow range (small volume of bricks moving one way or the other).
Mark a horizontal support and resistance box surrounding the range.
Wait until a Renko brick closes either above or below the box.
Place an entry towards the breakout with a stop at the very range boundary.
This is a method that enables you to follow the early moves before they escalate toward ideal intraday profits.
Source: https://renkokings.stck.me/post/1106702/Renko-Bar-Strategies-for-Day-Trading-with-NinjaTrader-8
