Intraday trading using Renko - Pre trade drills

Intraday trading refers to entering and exiting a trade on the same day. It can be taking a single trade or taking many trades. But before the trades are taken, other parameters, indicators and charts must be analyzed as well.

A day before taking the trade, the trader must analyze the Index or stock on daily timeframe to gauge the trend on bigger timeframe. Once analyzed, the Open Interest data should be analyzed to confirm the trend as well. Breadth analysis will help the trader understand the market sentiment and therefore must be analyzed as well.

Once this analysis is complete, conclusion must be drawn regarding the direction of the trend the following day.

Intraday box settings for Index

On Renko charts, the box sizes for Intraday Trading are 0.15% (1-min TF) and 0.07% (1-min TF).

Notice that there are two box sizes mentioned here. This is because the bigger box value of 0.15% is used for trend analysis. The smaller box value is used for taking the trades. The entry and exit from the index is taken based on the price patterns formed on 0.07% chart. Index rarely move by huge margin. This is the reason that very few bricks would plot on 0.15% chart. Whereas 0.07% charts will form multiple swings and will give a clear entry and exit coordinates.

It is important to note that the trade taken should be in the direction of the higher timeframe’s trend. Moving average or Super trend indicator can be used to filter the trend on both the box value charts.

Observe in the examples below that as the box size is changed to the lower box size, the opportunity to trade increased.

Intraday box settings for Stocks

The box sizes used for stocks is 0.25% (1-min TF) and 0.15% (1-min TF).

The same logic as Index box sizes goes for the stock. The higher box size of 0.25% (1-min) is used for trend analysis and the lower box size of 0.15% (1-min) is used for taking the trades.

Intraday trading is a skill that can be honed with practice. Analyzing the market the previous day is crucial. When done consistently, this can improve your observational skills. Use these timeframes on Renko and practice them to trade on intraday based on noiseless chart.

I have explained the concept further and in detail in my video. If you loved this newsletter you will like this video too.