Understanding the Renko Investing Strategy
If you’re a mid- to long-term investor and not a day trader, this Renko investing strategy will show you how to use Renko charts to make calmer, more confident decisions. In this video, I walk through how I look at the broader market, analyze individual stocks, use indicators like the Commodity Channel Index (CCI), and even ask AI (ChatGPT) for a second opinion before adjusting my positions.
Overview
Instead of reacting to every headline or intraday move, I use Renko charts to focus on trend and structure. I start with the S&P 500 Renko chart to understand the broader market health, then move down to my individual holdings to see how each stock is behaving inside that bigger context.
This Renko investing workflow is designed to:
- Keep the focus on major trends, not daily noise
- Help you decide when adding on pullbacks makes sense
- Spot early warning signs with CCI divergence and price structure
- Use AI as a second opinion without relying on it blindly
In the video, I use a real example with Amazon (AMZN) to demonstrate how the S&P 500 Renko trend, individual stock Renko trendlines, and CCI divergence work together to guide when I hold, add, trim, or take profits.
What You Will Learn
By watching the video and reviewing this page, you will learn:
- How to use the S&P 500 Renko chart to gauge overall market trend before touching individual stocks
- How to analyze individual stocks with Renko trendlines, higher highs/lows, and support/resistance zones
- How to apply the Commodity Channel Index (CCI) to detect divergence and early signs of a potential reversal
- How to use ChatGPT to analyze the same Renko chart and give you a different perspective
- Why keeping your process simple, repeatable, and long-term focused can reduce stress and improve decision making
Connect
If you found this video helpful, you can support the channel by:
- Subscribing to the Renko Trading Channel on YouTube
- Leaving a comment with how you use Renko charts in your own investing
- Sharing the video with another trader or investor who prefers a calmer, long-term Renko approach
You can subscribe here:
https://www.youtube.com/@RenkoTradingChannel
Related Renko Articles & Videos
Explore more Renko content that pairs well with this investing video:
- 5 Proven Tips to Ride Renko Trends Longer
- 5 Powerful Renko Chart Patterns
- Spotting Reversals with Renko
- ATR vs Fixed Brick Size Explained
Infographic – Renko Investing Workflow
Here is a visual summary of the Renko investing process I use in the video, from checking the S&P 500 trend to managing individual positions: