Renko Chart Tutorial: Price-Based Trading — Step-by-Step Guide & Transcript

[00:03] to open your manual. I am Lis. And I am Ricardo. And have you ever stared at a graph waiting for it to move and nothing, nothing? He simply stood there waiting, motionless. I will go, I won't go, I will go, I won't go. It's closed. I

[00:16] Today we are going to introduce ourselves to Renco. Yes, it's a chart that simply ignores the clock, ignores anxiety, and it only moves when the price moves. That's why it's the most honest chart in the financial market, more honest than

[00:30] you, who are a liar, and still haven't liked, shared, or subscribed to our channel. So don't forget to subscribe to our channel, click here on subscribe. Also, don't forget to like our

[00:46] video now! Feel free to leave a comment below if you have any questions or suggestions. You probably want to see us grow and are following our guidelines. So don't forget to help us. And now let's meet the most honest person in the

[01:02] let's meet the most honest person in the financial market. preliminary and main explanations so you can better understand the Renco chart. The

[01:17] Renco chart is completely different from the candlestick chart you're probably already used to. While the traditional candlestick chart moves based on time, every few minutes, 5 minutes, 15 minutes,

[01:33] whatever, the Renco chart moves only based on price, using price only based on price, using price as a benchmark. In other words, if the price doesn't change, nothing will appear on the chart.

[01:49] nothing will appear on the chart. The chart will look at you and say, "Nothing The chart will look at you and say, "Nothing happened today. Come back later." It's made up of blocks that can be called bricks. And each brick only

[02:03] called bricks. And each brick only appears when the price changes . It's very important that you establish a parameter to track this variation. Then you test and, reaching a

[02:20] minimum variation, a new brick will be formed, right? It works like this: You define the size of the block, the size of the brick, which can be 5,

[02:33] the size of the brick, which can be 5, 10, 50 cents, 50 points, whatever you want. If the price doesn't move by that many points, a new block won't appear on the chart, there won't be any new movement on the chart, it

[02:46] new movement on the chart, it will remain as it is. Now, when will remain as it is. Now, when there is a price movement, there is a price movement, a new brick appears, a new

[02:59] chart appears. Pay attention. If it goes up, a green brick or any color you define will appear. If it goes down, a red brick or any color you define will appear. Simple as that, no shadows, no wicks, no stress, no drama,

[03:14] no stress, no drama, but paying close attention. It's like a... It's like Lego, a process of assembling itself as the blocks and bricks appear. The great advantage of Renco is that it removes market noise. It filters out

[03:30] those micro-fluctuations that only serve to confuse, nervous, and somewhat apprehensive you about the market. In the Renco chart, the trend will be

[03:42] clearer, the chart will be more visually appealing for you to interpret. more visually appealing for you to interpret. You won't need to guess and try to see: "Is it going up, is it going down , is it falling, are

[03:56] bricks appearing, will a new brick appear going up, will a new brick appear going down, that's it." You will observe the chart based on price. In other words, Renco is like a friend who will look you in the eye like Captain Nascimento and say: "No one will go up

[04:12] when there is no significant change in value." However, it will clearly show you when it goes up, when it goes down. This middle ground will not exist. Okay? Now, in Profit, I'll

[04:27] show you how to configure this Renco and how you can already use it in your operations, right? So you're seeing here on the screen, right, that it's a traditional chart. Right, the candles. Uh, you can also see that the candles,

[04:41] in this case, are on a 5-minute timeframe. So, every 5 minutes a new candle will form, that is, it's based on time. So, 5 minutes are over, let's go to the next candle. Another 5 minutes, next candle. So, the chart is

[04:55] formed. The chart is formed based on time, OK? And then, how does it move, right? If within those 5 minutes, oops, the price went down, it

[05:07] minutes, oops, the price went down, it fell, then it was a larger candle. Ah, uh, within 5 minutes nothing happened, practically a dojo, right? Let me even find it here, look, practically nothing here. Nothing will happen there either

[05:20] , but it will jump to the next candle. And Renko works a little differently because it works in relation to the price. So, it only moves after the price moves. So,

[05:32] first thing, you go up here to change to Renko. Look here, Renko. It already has some periods. Pre-programmed here, three, let's say ranks. If you click here on rank, you can also choose a

[05:46] different period, I don't know , I want 20 ranks. OK, it's already at 20. If you look here in the background, it's here, 20R. Ah, I want 40 ranks. So, you type it directly on the computer, 40.

[06:00] Look at it here, it will also appear here as 40 ticks of rank. So the number, right, the 40 ticks of rank. So the number, right, the number means tick, and the tick is the smallest

[06:12] movement that the asset can move, right? It can move. So it's very important to learn that each tick is the smallest value that the asset can move, because for example, I'll put here 5R, 5R,

[06:28] so five ticks. How many ticks does that mean in the mini-index? Five ticks, in the case of the mini-index, will mean 20 points. So if you put 10 ticks,

[06:40] that's 40 points in movement. Now I'll put in... Petrobras, for example, 4. Uh, for example, Petrobras' Uh, for example, Petrobras' five ticks mean 13%. Are you going to put in

[06:55] another stock? Let's put here, uh, I don't know , let's put Taa. Let's go. Let's go to Taa. What is five ticks? Come here. It's almost 10%. Uh,

[07:10] so it depends, it changes a lot. So, for example, ah, it worked with Taa, for me, I think a chart with five ticks doesn't look so small, for example. chart with five ticks doesn't look so small, for example. Okay? Now, if you change to

[07:23] change stocks, put in Oi, put in, I don't know, Magazine Luiza and use the same 5R, maybe it won't work. It will be too small or too big. So, for each stock you will work to understand what is the

[07:37] best Reno chart, right? What is the best time frame for Reno? Let's go back here to the mini-index, then, in the 5R. Now I'm going to do the example we talked about, if the tick is too small, the

[07:50] chart will be huge, it will be messy, it will If you keep it that way, it will move too much. Let's put, for example, 3R, which I already think is quite small. Look, this is movement in a single day. This entire period here is in

[08:06] a single day in three Rs. That is, three Rs, three ticks, mean that every 10 points it will move up or down, right? Of course. So it's already a chart that gets very, it's very fast, it's very, it makes the

[08:21] chart messy, right? If you put a very large chart, say, 50R, for example, 50R, look what happened on this day here. here. Only 1 2 3 4 5 6 7 8 9 bars. Only

[08:37] nine bricks were built on this day here. So, sometimes it's too little, too little , right? There's also too little, that is, it's not possible, it's not possible to work. R 50 is 225 points, you will enter very late, it's not good

[08:52] to use either. You will find, according to your strategy, which is the best chart to use. Okay, let's work, okay? What's the best timeframe for it? Now that you understand how Renco works, it's based on value,

[09:05] not time. That is, it only creates a new brick when it completes 20 points upwards or 20 points downwards. For example, here, at the very end of the day, it didn't reach 20 points,

[09:20] so it didn't form a new one. So, if the price stays there, it will keep , up, down, and the chart won't move. It only moves when it finally completes 20 points, either upwards or

[09:33] downwards. And then it will form a new brick. And like any chart, we can also work with indicators. One indicator that is widely used is the moving average. So we can create and place a moving average here in the middle of the

[09:49] chart, set it to 50, and insert the 50-period moving average. Let's change and insert the 50-period moving average. Let's change its color to exponential. What color should it be? You can leave it as is. And with The moving average, generally we

[10:03] work like this. If the chart is above the average, you will look for, of course, buy options. If the chart is below the average, you will look for sell operations. So, for example, here it fell, made a small

[10:17] pullback here, formed a flag or some other pattern, you can even use a lot of price action on it, formed a flag or on it, formed a flag or stabilized, you draw a line here, you

[10:31] draw your pattern, you observe, when it broke through, you enter it, you go short, because in this case it is below the average. Same thing in reverse. Wow, it broke through here and so on, returned to the average too. You can do a return-to-

[10:47] average operation. Return-to-average, enter up here, put a stop loss down and let the operation continue. So, it is possible to use other indicators, not just this one, right? Uh, not just the moving average, but some other indicator and complement it

[11:02] along with the Renco chart. But remember, it Looking at it like this, the chart seems like wow, it becomes much cleaner, It's more enjoyable to live without it, but it's not easier. The price remains the same, the

[11:16] asset remains the same, the time also remains the same. So, just because it's easier to visualize doesn't mean you'll make money easily now. So, study hard, work hard, and one day it will work out.

[11:35] Renko chart or have learned the main aspects of the Renko chart, it's important to remember or demonstrate common and classic mistakes that beginner traders make when using the Renko chart. The

[11:50] first mistake is thinking that Renco is the solution to your problems, a magic wand that will always make you successful while operating in the financial market. Do I have a spoiler to give you? Do I have a revelation to give you like the mother

[12:05] I have a revelation to give you like the mother of Na? No, it's not. You won't have an of Na? No, it's not. You won't have an easy life just because you're using the easy life just because you're using the Renko chart. This leads to the second

[12:18] Renko chart. This leads to the second mistake: ignoring risk management, thinking that because the chart is clearer, a little prettier to look at, you'll think everything is simpler and you won't make mistakes. I

[12:32] have another revelation to give you. If you do that, you'll make a mistake. And a third mistake is you'll make a mistake. And a third mistake is using a variation, a value in using a variation, a value in the block that's too small. Having a

[12:47] small price variation will generate false perceptions, and then you'll have a chart moving, creating new blocks with that price variation, and you'll end up making mistakes. I don't think your tiny brick will be

[13:03] think your tiny brick will be enough to please everyone. A

[13:15] And another very common mistake is thinking that using Renco alone will guarantee success. Ideally, you should use Renco with indicators that provide a greater perception of trends and analysis of upcoming movements in the

[13:31] financial market, combining the information Renco provides with other indicators that confirm this price movement. for those who want a clean visual, a clear visual that shows a

[13:45] clear trend, and of course, don't want to be stressed, right? It doesn't care about time, it doesn't care about your anxiety, it doesn't care about your hurry; moves. Now, let's go. Okay, so here's a quick summary on the screen, right? It filters out the

[13:59] noise, it has a clearer trend, it's great for beginners, but it remember? It can't be too big or too small, and it doesn't eliminate the need for careful with that, okay?

[14:13] And you, who made it to the end of the video, had you ever used Renco? And this isn't some anime scam, okay? It's also very important that you

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