Looking for advanced Renko chart strategies that actually work? You’re in the right place. This guide is packed with practical insights and detailed walkthroughs to help experienced traders capitalize on Renko chart trends with more precision and confidence.
If you’ve already got a handle on basic Renko charting techniques, it’s time to take your trading to the next level with these advanced Renko strategies. This guide covers advanced Renko strategies designed for experienced traders who want sharper entries, better risk control, and more consistent results. If you’re newer to Renko, check out our beginner’s guide to Renko charts first. From trend continuation tactics to breakout retests and hidden divergences, these approaches are built for confidence and precision.
📌 Summary: What You’ll Get
- 3 advanced Renko trading strategies explained step-by-step
- Real-world TradingView videos showing entries and exits
- Risk control techniques that help reduce drawdowns
- Free checklist to keep your trades focused and consistent
The Psychology Behind Advanced Renko Chart Strategies
Advanced traders rely on Renko charts to cut through market noise and focus on price direction. Unlike candlesticks, Renko filters out minor fluctuations, helping you stay objective. The key lies in understanding how professional traders read Renko block transitions as psychological tipping points — a series of bricks in one direction often signals consensus or exhaustion.
Strategy 1: Trend Continuation Using Supertrend on Daily Renko
Setup:
- Chart: Daily Renko
- Indicator: Supertrend
Entry: Enter a position when the Supertrend turns in the direction of the trade on the daily Renko chart.
Exit: Opposite Supertrend signal.
Pro Tip: For added confidence, look for a strong trend run with minimal pullbacks after the Supertrend flips direction.
Strategy 2: Breakout & Retest Using Renko Blocks
🎥 Watch it in action: Smarter Renko Breakout Entries & Exits AAPL Strategy Using TradingView Labels 2020–2025
Objective: Capture strong directional moves by following Renko brick color changes using non-repainting visual labels.
Steps:
- Watch for a Renko brick color change that marks the start of a new trend.
- Wait for a temporary pullback (1–2 opposite bricks).
- Enter when the trend resumes with another brick in the original direction.
Tools: Use a fixed brick size (e.g., 10 pips) and apply the trend visualization indicator to see the first confirmed brick for trend changes.
Why It Works: Retests validate breakout strength and provide tighter entries with reduced risk. This video demonstrates how to visualize these turning points using custom Pine Script logic — highlighting only the first confirmed brick that starts or ends a trend. For more Renko tools, explore our list of Renko chart indicators. It’s not a buy/sell script, but a realistic tool for interpreting trend structure without misleading backtest signals.
Strategy 3: Hidden Divergences with Renko + MACD
🎥 Watch the full walkthrough: Renko, RSI Divergence, MACD, and Pattern Confirmation Strategy
Concept: Hidden divergences suggest trend continuation, often missed on traditional charts. In this video, I walk through how I use Renko charts with RSI divergence and MACD crossovers to identify early signs of momentum shifts — but I don’t enter based on signals alone.
How to Spot It:
- Price forms a higher low (in uptrend) while MACD forms a lower low
- On Renko, this appears as a short pullback without structure breaking
Entry: After spotting divergence, wait for confirmation through trendline breaks or classic chart patterns (W, M, or head-and-shoulders) before entering.
Exit: Opposite MACD crossover or visual trend reversal on bricks
Why It Works: This conservative approach helps filter out noise and avoid false starts. The video includes a full trade example, demonstrating how each layer of confirmation improves long-term decision-making.
Risk & Drawdown Management for Pro Renko Traders
🎥 Watch the coding-to-backtest journey: Can ChatGPT Build a Renko Strategy That Reduces Drawdowns?
In this video, I demonstrate how I collaborated with ChatGPT to turn a Renko-style trend-following idea into a fully functional Pine Script strategy. The focus? Smarter risk control and smoother equity curves.
We explore how to:
- Translate an indicator into a Pine Script strategy
- Use EMAs to improve trend capture and reduce whipsaws
- Compare the results fairly against buy-and-hold
The takeaway: Even if it doesn’t outperform in raw returns, the reduced drawdowns make it easier to stick with the strategy long term.
- Adaptive Stop Loss: Set SL one brick beyond the recent swing low/high
- Brick Size Tuning: Adjust brick size based on asset volatility (e.g., use ATR(14) or fixed pip size)
- Capital Allocation: Consider using a fixed fractional position sizing model (e.g., 2% risk per trade)
Warning: Smaller brick sizes may offer earlier signals but increase whipsaws — test thoroughly.
FAQs from Advanced Traders
Q: How do you filter false breakouts on Renko?
A: Use volume confirmation or look for at least two bricks beyond the breakout level to confirm momentum.
Q: What’s the best Renko brick size for swing trading?
A: A good starting point is the ATR(14) on a 1-hour chart, but backtesting is essential to find the optimal setting.
Q: Can I use Renko for intraday trading?
A: Yes, but use caution — lower timeframes are prone to noise. Combine with strong filters like trendlines or VWAP.
Ready to Level Up?
Want to see these strategies in action?
🎥 Watch more tutorials on the Renko Trading Channel
📥 Download the free Advanced Renko Strategy Checklist
Have questions or a strategy to share? Drop a comment — let’s trade smarter together.