Support/Resistance on Renko Charts

[kaamos]

Hi:

I´ve been in the forum without much participation. Now i have an idea, that arose from observation, and i wanna now if some people can validate it. I´ve been seeing in renko charts that apparently max value and min value of heiken ashi bars could be used as support/resistance values for next renko bar. We gonna take this area with bars under yellow lines as example, taken from EURUSD Renko(10)

Now we´ll see same with heinken ashi, in the area of small bullish bars there´s one with a yellow dot, next bar no surpass minimum value of last heiken ashi bar, same pattern is reapeted when there´s a bullish trend, so minimum value of last heinken ashi acts like support

'Same' happens when trend is bearish, but in this case max value of heiken ashi acts like 'resistance', see the yellow dot and 'resistance' level

I would know if we could create a strategy to trade using this observation. I´ve been filtering renko bars with exponential moving averages(13) with mixed results no gain no loss. Opening buy when last HA and Renko bars go up, and over EMA(13), and sell when last HA and Renko bars go down and below EMA(13), and using money management, placing my stops on HA support/resistance and a number of lots that don´t make me loss more than 300 bucks from my demo account.

I don´t know if something of this observations could be usefull to make a profitable trade system. I´m java programmer and mql4 is not much difficult to me.

Ideas are received

Thanks

[kaamos]

Here i have a test of my idea, you can see that stoploss are on minimun last heikenashi, i have problems with consolidation areas

Thanks again

[marley60]

it is no wonder that a trendfollowing strategy works in a trending market. the problem with very simple trendfollowing stategies is that they destroy your account in sideways markets. you will have to find a solution how to avoid trading in sideways markets. maybe you can find some useful ideas of how to do that in mr.nims thread here on tsd.

the other problem with renko is, that it doesn´t show the gaps. i went thru a lot of renkocharts marking possible entries and exits. thought i found the holy grail, but quite often the best trades are not available in reality because the market just made a gap.

[kaamos]

marley60:
it is no wonder that a trendfollowing strategy works in a trending market. the problem with very simple trendfollowing stategies is that they destroy your account in sideways markets. you will have to find a solution how to avoid trading in sideways markets. maybe you can find some useful ideas of how to do that in mr.nims thread here on tsd. the other problem with renko is, that it doesn´t show the gaps. i went thru a lot of renkocharts marking possible entries and exits. thought i found the holy grail, but quite often the best trades are not available in reality because the market just made a gap.

Thanks for the advice. IT´S AN AMAZING THREAD!!!!!!!!!!