EMA Market Structure BOSWaves — Section One

 Have you ever felt like the markets are just too noisy — like you’re drowning in candle‑by‑candle chaos while trying to make smart trading decisions? What if there was a way to strip out all that fluff and focus purely on meaningful price moves? That’s exactly what the [tradinghook] – Renko Trend Reversal Strategy tries to do. It’s a Pine Script‑based system for TradingView, built around Renko charts, trend reversal detection, and automatic risk management.

In this article, we’ll take a deep dive into how this strategy works, what makes it powerful (and where it might trip you up), and how you can actually use it in your own trading journey. Buckle up — there's a lot to unpack.

What Is the Renko Trend Reversal Strategy by tradinghook?

The [tradinghook] – Renko TRS (Trend Reversal Strategy) is a chart strategy coded in Pine Script for TradingView. Created by subhanahmed047, it's an open-source tool designed to spot trend reversals using Renko charts that scale dynamically with Average True Range (ATR). TradingView+1

Instead of relying on time-based candles, the strategy focuses purely on price movement. That means bricks are made only when price moves enough (as defined by ATR), which helps you cut through the noise and emphasize the real swings. TradingView

Beyond simply drawing Renko bricks, this strategy:

• Generates buy/sell signals when trend reversal is likely

• Applies stop-loss and take-profit levels automatically

• Lets you customize inputs like ATR length, SL/TP percentages, and backtesting date range

• Plots colored Renko “open” lines for clarity (green for bullish trend, red for bearish) TradingView

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Key Features & How It Works

Let’s break down what’s inside this strategy and how it's designed to support your trading.

Renko Chart Integration

• Uses Renko charts where bricks are built based on price moves, not time. TradingView

• Brick size is dynamically set using ATR, so volatility matters: when the market is calm, bricks are small; when it’s wild, bricks grow. TradingView+1

• Because Renko filters out small, meaningless price fluctuations, you can more easily spot trend reversals.

Renko charts are powerful for trend-focused trading because they minimize the “noise” of small fluctuations. Investopedia

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Customizable Inputs

The strategy doesn’t force a one-size-fits-all approach. You can tweak:

• ATR Length — to decide how sensitive your bricks are to price movement.

• Stop-Loss Percentage — set how big your risk is compared to the Renko “open” price.

• Take-Profit Percentage — define your reward target relative to the entry.

• Date Range (Start/End) — limit backtests or strategy execution to specific periods, which is super helpful for optimization. TradingView

• Signal Toggle — turn buy/sell signals or risk management on/off if you just want to visualize or test. TradingView+1

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Buy / Sell Signals

• A buy signal is generated when the Renko closing price crosses below the Renko opening price, indicating a bullish reversal. TradingView

• A sell signal comes when the Renko closing price crosses above the Renko opening price, signaling bearish reversal. TradingView

• These signals are plotted on the chart with clear “Buy” / “Sell” labels, making potential entries easy to spot. TradingView

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Risk Management

• Stop-Loss: Automatically calculated based on a percentage of the Renko open price, so your risk is tied directly to the strategy logic. TradingView

• Take-Profit: Also set as a percentage of Renko open — helps you lock in gains in a structured way. TradingView

• Since SL/TP are both automated, this reduces emotional decision-making and helps enforce discipline in your trading.

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Visual Representation

• The strategy plots a Renko open line that is color-coded: green for bullish trend, red for bearish. TradingView

• These visuals help you quickly grasp the current Renko trend direction without guessing.

• The chart also displays entry labels (“Buy” / “Sell”) right at the relevant Renko bricks — so you can see exactly where reversals were identified.

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Advantages — Why It’s a Solid Tool for Trading

Here are the major plus‑sides this strategy offers for someone serious about trading:

• Noise Reduction: By using Renko + ATR, you remove a lot of the “chatter” that clutters time-based charts.

• Custom Risk Controls: SL / TP are built‑in and customizable, allowing more disciplined risk management.

• Backtest-Friendly: The date range input makes backtesting easier for specific market periods.

• Clear Visuals: The green/red Renko open line is intuitive, so you get a cleaner read on trend direction.

• Trend Reversals Focused: Ideal for swing or trend traders who want to catch reversals without being misled by small wiggles.

• Open‑Source: Since the code is public (via TradingView), you (or anyone) can review or modify it. TradingView

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Disadvantages & Things to Watch Out For

That said, nothing’s perfect. There are a few real risks and limitations you need to be aware of before betting too much on this for trading.

• Dependence on Renko Charts: This strategy is built around Renko — if you don’t like or fully understand Renko, you might misinterpret signals.

• Limited Signal Variety: It only triggers on simple crossovers (Renko open vs close), so it might miss more subtle or complex market conditions.

• Not Great in Sideways Markets: Renko works best in trending conditions; when markets are range-bound, reversals may be weak or whipsaw.

• Fixed SL / TP Logic: While %‑based SL/TP is simple, it may not adapt well in every market scenario — sometimes you want more dynamic risk exit.

• Learning Curve: If you're new to Renko or ATR-based charts, the concepts might take a while to click.

• Potential Repainting / Data Issues: Users have noted that TradingView's Renko charts can be misleading or repaint under certain conditions. Reddit+2Reddit+2

• Backtesting vs Live Trading Differences: Because Renko bricks form based on price movement and not time, what looks clean in a backtest might feel different in a live environment. Some traders report that strategy testing on Renko isn't always faithful to real-world execution. Reddit

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How to Actually Use This Strategy in Your Trading

Okay, so you've read about it — now how do you use the [tradinghook] Renko TRS in real trading?

Step‑by‑Step Setup

• On TradingView, open the Pine Script editor and apply the [tradinghook] – Renko Trend Reversal Strategy. TradingView

• Configure the ATR Length based on how volatile the market is or how “sensitive” you want brick generation to be.

• Set your Stop‑Loss % and Take‑Profit % according to your risk tolerance.

• Define the Start Date / End Date, if you want to backtest on a specific historical period.

• Turn on or off Buy / Sell signals or SL/TP plotting, depending on whether you're testing or going live.

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Finding Entry Points

• Long (buy): When the script shows a green “Buy” label — that means the Renko close moved below the open, signaling a potential bullish reversal. TradingView

• Short (sell): When a red “Sell” label appears — Renko close crossed above the open, hinting at bearish reversal. TradingView

• Make sure to check the Renko open line’s color (green/red) as an extra confirmation of trend direction.

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Exiting Trades & Risk Management

• Use the stop-loss level that the script calculates for you, based on your % setting.

• Use the take-profit target likewise, which helps you lock in gains once the move has enough momentum.

• If you're unsure about a target, you could always scale out — take partial profits and leave part of the position running.

• Always consider slippage or execution delays, especially when you're trading on live markets (Renko can form bricks quickly during volatile sessions).

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Tips to Get the Most Out of It

Here’s some real-world advice so you don’t just use this strategy half-baked:

• Backtest Properly: Use different markets (forex, crypto, stocks) and timeframes. Try bull, bear, and range periods.

• Optimize Thoughtfully: Don’t just crank sensitivity to max — find a balance that makes sense for your risk and market.

• Combine With Other Tools: Use Renko TRS alongside momentum indicators (like RSI, MACD) or structure tools to validate signals.

• Watch Live Feels: Simulate or paper trade to feel how bricks actually form in real time — brick formation speed varies.

• Be Careful With Automation: If you use alerts or webhook bots, make sure execution logic is tight and you account for the quirks of Renko.

• Stay Up to Date: The strategy is open‑source, so keep an eye on updates, bug fixes, or tweaks from the author subhanahmed047. TradingView

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Comparison: Renko TRS vs Classic Candlestick Strategies

Here’s a quick table comparing this Renko‑based strategy versus more traditional, time-based candlestick trading models in the context of trading:

Feature	Renko Trend Reversal Strategy	Traditional Candlestick Strategy
Noise Filtering	✅ Very clean (ignores small price moves)	⚠️ More noisy, time-based candles keep everything
Entry Signals	✅ Based on Renko close/open crossovers	✅ Can use candlestick patterns, indicators, etc.
Risk‑Reward Setup	✅ Integrated SL/TP based on Renko open	⚠️ Often manual or separate risk tools needed
Visualization	✅ Clear, brick‑based, color-coded	✅ Richer detail, but clutter possible
Adaptability	✅ ATR‑based bricks adjust to volatility	⚠️ Candles fixed in time, less adaptive
Complexity	⚠️ Mid‑high (need to understand Renko + ATR)	✅ Varies (could be very simple or very complex)

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Frequently Asked Questions

Q: Is the Renko Trend Reversal Strategy repainting?
No, the script uses confirmed bars (barstate.isconfirmed) and custom security functions to avoid repaint issues as much as possible. TradingView But be aware: depending on how Renko bricks form, you might still see differences between backtests and live execution.

Q: What ATR length should I use for brick size?
It depends on the asset and its volatility. If you're trading something with high volatility (like some cryptos), you might choose a longer ATR. For calmer assets, a shorter ATR could work well. Experiment and backtest.

Q: Can I use this strategy for any market?
Yes — it's designed to work on any market with price data on TradingView, including forex, stocks, crypto. But performance will vary, so backtesting on your specific market is essential.

Q: Should I rely entirely on its SL / TP settings?
They’re a great baseline, but you don’t have to blindly trust them. Use them, but consider adjusting or layering your own exits if market conditions warrant.

Q: What about Renko chart limitations on TradingView?
Some traders have reported misleading Renko behavior on TradingView, especially when not using high-resolution data. Reddit+1 Be cautious, test thoroughly, and confirm your strategy in both backtest and live conditions.

Free download

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Conclusion — Is This Strategy for You?

If you're the kind of trader who gets frustrated by chart noise and wants to focus on big, meaningful price moves, the [tradinghook] – Renko Trend Reversal Strategy could be a really powerful addition to your trading toolbox. It filters out fluff, gives clean reversal signals, and lets you manage risk in a disciplined way.

But — and this is a real but — it's not a magic bullet. It depends on understanding Renko charts, optimizing parameters, and recognizing that it’s not always going to shine in every market. To get the most from it, backtest thoroughly, use good risk discipline, and maybe combine this with other tools or indicators.

If you do that — and you really learn how the bricks form and react — this strategy can help you spot trend reversals more clearly and trade with more conviction.

Contact us via the web if you want help configuring the inputs, interpreting the strategy outputs, or running it with alerts or automated execution.

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Source
tradinghook – Renko Trend Reversal Strategy on TradingView — by subhanahmed047, updated Aug 20, 2023 TradingView