Renko Trend Reversal Strategy

7 jam lalu

This Pine Script implements a simple Renko-based trend reversal trading strategy for TradingView. Here’s what it does, broken down clearly:

🔍 Purpose
The script is a strategy (not just an indicator) designed to simulate trading based on Renko-style trend changes, using smoothed price data to detect entries and exits.

🧠 How It Works
1. Trend Detection Using SMAs
It uses two simple moving averages (SMAs) to simulate a Renko-like trend signal:


renko_trend = ta.sma(close, 2) > ta.sma(close, 10) ? 1 : -1
If the short-term SMA (2) is above the long-term SMA (10), the trend is considered bullish (1).

If below, it's bearish (-1).

2. Trend Reversal Detection
A trend change is detected using:


trend_change = ta.change(renko_trend)
It checks if the renko_trend has flipped since the previous candle.

3. Trade Entry Conditions
A long trade is entered when the trend changes to bullish.

A short trade is entered when the trend changes to bearish.


if long_condition
strategy.entry("Long", strategy.long)
if short_condition
strategy.entry("Short", strategy.short)

4. Exit Conditions
Exits are handled using a trailing stop:


strategy.exit(..., trail_points = 50, trail_offset = 20)
A trailing stop loss of 50 points is used, activating only after the price moves 20 points in favor of the trade.

📈 Visualization
It plots the current trend (1 or -1) on the chart as a blue line, which helps you see trend direction changes visually.

⚙️ Strategy Settings
Uses 10% of equity per trade (default_qty_value = 10).

Works on regular candlestick charts, but mimics a Renko-style trend-following behavior.

✅ Summary
This strategy:

Enters trades on trend reversals based on short-term vs. long-term SMA crossover.

Uses trailing stops for exits.

Mimics Renko behavior without using real Renko bricks—just SMA-based smoothing.

6 jam lalu

Nota Keluaran

This Pine Script implements a simple Renko-based trend reversal trading strategy for TradingView. Here’s what it does, broken down clearly:

🔍 Purpose
The script is a strategy (not just an indicator) designed to simulate trading based on Renko-style trend changes, using smoothed price data to detect entries and exits.

🧠 How It Works
1. Trend Detection Using SMAs
It uses two simple moving averages (SMAs) to simulate a Renko-like trend signal:


renko_trend = ta.sma(close, 2) > ta.sma(close, 10) ? 1 : -1
If the short-term SMA (2) is above the long-term SMA (10), the trend is considered bullish (1).

If below, it's bearish (-1).

2. Trend Reversal Detection
A trend change is detected using:


trend_change = ta.change(renko_trend)
It checks if the renko_trend has flipped since the previous candle.

3. Trade Entry Conditions
A long trade is entered when the trend changes to bullish.

A short trade is entered when the trend changes to bearish.


if long_condition
strategy.entry("Long", strategy.long)
if short_condition
strategy.entry("Short", strategy.short)

4. Exit Conditions
Exits are handled using a trailing stop:


strategy.exit(..., trail_points = 50, trail_offset = 20)
A trailing stop loss of 50 points is used, activating only after the price moves 20 points in favor of the trade.

📈 Visualization
It plots the current trend (1 or -1) on the chart as a blue line, which helps you see trend direction changes visually.

⚙️ Strategy Settings
Uses 10% of equity per trade (default_qty_value = 10).

Works on regular candlestick charts, but mimics a Renko-style trend-following behavior.

✅ Summary
This strategy:

Enters trades on trend reversals based on short-term vs. long-term SMA crossover.

Uses trailing stops for exits.

Mimics Renko behavior without using real Renko bricks—just SMA-based smoothing.