A Way to Use Renko Bars as a Filter to Trades

BITSTAMP:BTCUSD   Bitcoin / Dolar
With some careful back-testing (fitting), renko can help us to be on the right side of trades, acting as a useful filter for signals both on longer and shorter time-frames.
Comment on chart:

Find a suitable increment for the market in question. Ideally, strong trending moves should average corrections of only one to two units on the daily time-frame (shoot for no higher than an average of three). Next, find a moving average that fits the daily time-frame (both works as pivot/ support to trends and acts as a reliable change of trend signal after a two to three bar close on the opposite side of that average, away from the current trend).

Move down to the hour to check for suitable stop distance (if the average pullback is less than two bars, then a stop of at least one bar is a good start). Move further down to the 15 and 5 to confirm that the stop distance has strong confirmation. A much smaller distance stop may be used for smaller time-frame entries (e.g. hourly supertrend system).

The main filter is to only be long on a daily green candle above the fitted average (better odds when average is moving in the same direction) and short with a daily red candle below the average (better odds when average is moving down).

Here, for daily BTCUSD renko chart, I have $20 units using the 21 SMA.
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