Renko filters out time and minor noise, making chart patterns exceptionally clean. A double-top on Renko is a rare, high-reliability reversal signal. Two failed attempts at the same brick level signal exhausted buying.
Indicators Used
Renko BarsEMA 20 on Renko
Rules
📉 Short Entry
- On Renko chart, identify two green bricks reaching the same high level
- A red brick forms between them, confirming the failure
- A second red brick closes below the neckline (low of red brick between peaks)
- Enter short on close of the second red brick
- Stop: above the double-top brick highs (1-2 bricks)
- Target: pattern height projected down from neckline
⚙️ Configuration
- // Renko Double-Top Config
- Brick size: ATR(14) based (recommended)
- Or fixed points: user preference
- Entry trigger: 2nd brick close below neckline
2 bricks
Confirmation
ATR-based
Brick Size
💡 Pro Tip
Renko patterns only form cleanly with appropriate brick sizing. ATR-based brick sizing adapts to volatility, while fixed-point bricks work on instruments with stable ranges. Don't use 1-tick Renko. Too much noise defeats the purpose.