Help Needed for Trading Noiseless Charts - Daily Time Frame
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Dear Definedge Team, @Prashant Ji
Let me start by emphasizing the impact definedge has made in my life. I have always been allured by the life of a trader but life having chosen a different career path for me, never had the opportunity to pursue it. It is now, in the second innings of my career, I finally decided to pursue my passion.
I was introduced to the science of noiseless trading by Prashant ji's video on youtube, which lead me to purchasing the book on Renko and point and figure, opening the dmat account with definedge ( trying to maintain my account in breakeven with little and half cooked knowledge which I gathered from the book) and trying to implement and trade based on pointers and knowledge taught by Prashant ji in his book.
As any other newbie, I tried to test waters on daily time frame but the urge to see the markets move quickly lead me to the 1 min time frame. Having burnt a bit of capital, I did understand I was far in experience to trade through the whipsaws of 1 min which made me mean revert to the daily time frame and had a question ( apologies in advance for the level of noobness but please bear as I am just a beginner)
The strategy which I am using is to identify trend on the 1% box size ( Daily TF) and trading continuation patterns on the .25% (Daily TF). Considering that on the Daily TF, the brick shall not be closed till the end of the day and any bricks plotted throughout the course of the day are not permanent, am I missing something in assuming that the trade shall be taken only the next day looking at the levels and patterns printed by the instrument the preceding day ? Considering that the levels, bricks, columns can, will and might alter during the course of the day, isn't it suggestable to look at the levels at the end of the day and get into a trade in case conducive ?Thanks in advance
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Hi, first of all thank you for your kind words. It is very encouraging to know you found our work helpful.
It's a good approach to use 1% and 0.25%. If you find the 0.25% brick size a bit aggressive, you can also consider 0.50% instead of 0.25% on a Renko chart.
Please refer to the link below that answers your question. Please let me know if you need more clarity.
https://shelf.definedgesecurities.com/renko-chart/trading-aspects-renko-chart/which-price-to-use/
