There is beauty in the clarity of a Renko chart.
Especially when you can improve on the already existing clarity with an additional indicator. Below is the Renko without trend indicator. Also, not so bad.
As you will know Renko charts only look only at price action per selected time interval and neglect time. Thereby eliminating a lot of sideways movements and random market noise. I would like to do more with Renko charts but have to figure out exactly how.
The first problem I'm facing is that you get different signals for different bitcoin markets.
On Coinbase, with trend indicator, we're correcting down as can be seen in the top chart.
On Bitstamp however (below), we're up
Bitfinex, also up
Binance: up
Of course, eventually they're all going to move in the same direction. The entry signals however - and then also the exit signals - are not going to be given at the same time.
Hmm.
Best will be to just pick one and stick with that. I'm choosing Coinbase.
Now, there are false signals in the sense that the trend changes (brick colour change) but fails to continue, even turns against us almost immediately. Fortunately, the move in the opposite direction is of such magnitude that you'll be able to quickly recover any losses. Actually, it looks very well suited for options. Simply buy a call when the Renko brick turns green and buy a put when it goes red. Just make sure to have some time on the option: 3 to 6 months seems sensible.
To run a small test, on Deribit.com, we can buy a put December 11000 for 0.2150 BTC. Let's see how that plays out.