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Mini-median line with Median Renko chart – A scalping strategy

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Median Renko charts, a modified version of the traditional Renko bricks brings a different view to the markets. Call it what you may, but I find the Median Renko charts a ‘Heikin Ashi‘ type of version of the Renko charts. Trends are visually easy to see in this type of Renko chart thus making it somewhat easier to build trading strategies.

The mini-median line is nothing but a traditional median line or Andrews’ Pitchfork tool that is applied only to local pivot points. Unlike the traditional way of plotting median lines, the mini-median line is drawn using 5 – 7 bars at max by making use of local pivot highs and lows. You can purchase the Median Renko chart plugin for MT4 from here.

The chart shown below is a great example of a regular median line where we make use of pivot swing points, while the dotted median line on the right is a mini-median line.

Comparison of regular and mini median lines on Median Renko chart

Comparison of regular and mini median lines on Median Renko chart

This trading strategy is an evolution to the original and previous trading strategy using median lines mentioned here.

Mini-median line with Median Renko chart – Trading Strategy


Frequently asked questions!

What markets does this strategy work best for?

I haven’t tried this out on currencies and limited this strategy to sharp trending instruments such as Gold, Silver, Indices CFD’s. The advantage here is that I can use a 5 point median Renko chart and still be able to catch a good trend without compromising on the spreads. Feel free to work this out on other markets if you are interested.

What Renko box size should I use for this strategy?

There is no silver bullet! You will need to experiment and demo trade a few times to get the right box size. Also, the box size will depend on other factors such as your trade size, leverage, risk management.

Does this strategy work on regular Renko charts too?

There is a bit of a chop that comes with regular Renko charts and also the reversals can be a bit misleading at times. The results are however greatly improved when using this strategy on Median Renko charts.

What Median Renko chart plugin do you recommend?

Spend a few bucks and buy this Median Renko chart plugin. It costs you only $35 if you want to use the plugin only for trading. (If you want to use the median Renko chart for backtesting, then it costs you $50)