Signals
This page contains information about the different signals available in the indicator
Last updated
This page contains information about the different signals available in the indicator
Last updated
The RenkoGurus - Consolidation & Breakout Filter generates breakout and breakdown signals when the price moves decisively out of a consolidation phase. These signals help traders identify high-probability trade opportunities by confirming when the price establishes a new directional bias.
The indicator detects consolidation zones, which represent periods of indecision in the market where buyers and sellers are in balance. When the price finally breaks out of the consolidation range, it often leads to strong directional movement. The system provides two key types of signals:
Bullish Channel Breakout (X)
This signal occurs when price breaks above the consolidation zone, indicating a potential uptrend.
It suggests that buyers have gained control, and a bullish move may continue.
Often used for long entries, especially when confirmed by the rank trend filter.
Bearish Channel Breakdown (X)
This signal is triggered when price breaks below the consolidation zone, signaling a potential downtrend.
It suggests that sellers have taken control, and further downside movement is likely.
Often used for short entries, especially when aligned with the rank trend filter.
Breakout signals are most effective when followed by strong momentum, meaning the price continues to move in the breakout direction without immediately reversing.
Combining signals with the rank filter can help validate whether the breakout aligns with the dominant market trend.
False breakouts can occur, so traders may choose to wait for additional confirmation, such as a higher close above the breakout level (for bullish signals) or a lower close below the breakdown level (for bearish signals).
Confirm the Trend: Use the rank indicator to check if the breakout aligns with the prevailing trend.
Avoid Traps: Be cautious of false breakouts, which can occur when price briefly moves outside consolidation but lacks follow-through.
Use Stop Losses: Place stop-loss orders below the consolidation range for long trades and above the consolidation range for short trades.
Target Key Levels: Set profit targets based on previous support/resistance levels or measured move projections.
By leveraging the breakout and breakdown signals, traders can capitalize on momentum shifts and avoid being caught in choppy, indecisive price action. This structured approach enhances trade execution and improves the probability of catching strong, trending moves.
The RenkoGurus - Consolidation & Breakout Filter provides Exit Long and Exit Short signals whenever an inverse Renko brick forms, signaling a potential pullback or slowdown in momentum. These exits are designed to help traders lock in profits at strategic points without prematurely closing trades in strong trends.
How the Exit Signals Work
Unlike the breakout and breakdown signals, which indicate a new directional move, the exit signals serve as a risk management tool by warning traders of temporary price reversals.
Exit Long
This signal occurs when a bearish inverse Renko brick forms after a long position.
It suggests a potential pullback or slowdown in the uptrend.
Often appears as the price moves into the purple area, which represents previous consolidation zones or areas of uncertainty.
Traders may choose to exit completely, scale out of the position, or adjust stop-loss levels to secure profits.
Exit Short
This signal is triggered when a bullish inverse Renko brick forms after a short position.
It signals a potential pullback or loss of momentum in the downtrend.
Similar to Exit Long, it typically appears when the price enters the purple area, indicating a shift in price structure.
Traders may take partial or full profits, or trail their stop-loss to protect gains.
Interpreting the Exit Signals
The purple zone does not always mean consolidation—the trend can still continue. However, it represents an area where price action slows down, reverses, or finds resistance/support.
Exit signals do not mean a complete trend reversal, but they offer traders an opportunity to lock in profits before potential retracements.
Trend traders may choose to re-enter if the price resumes its directional movement after a temporary pullback.
Use the Exit Signals as Profit-Taking Points
If a breakout trade has reached a strong move, an exit signal can be a good place to secure profits.
Some traders prefer scaling out—closing part of the position while letting the rest run.
Consider Market Context
If the overall trend is strong, traders may choose to ignore the exit and hold the position with a trailing stop.
If the trend appears weak, it may be a sign to fully exit the trade and wait for a new setup.
Combine with Other Signals
If an exit signal coincides with a major support/resistance level, it can act as an even stronger reason to close the trade.
Watching for breakout retests or rank trend strength can help decide whether to exit or hold.
By utilizing the Exit Long & Exit Short signals, traders can take a structured approach to profit-taking, reducing emotional decision-making and optimizing their risk-reward ratio. These signals serve as a mechanical way to protect gains while allowing flexibility to stay in strong trends.
The Profit Taker Long & Profit Taker Short feature in the RenkoGurus - Consolidation & Breakout Filter allows traders to automatically exit their positions based on a predefined number of Renko bars from the breakout point. This is an ideal tool for scalpers and momentum traders who prefer quick, systematic exits to lock in profits efficiently.
How the Profit Taker Works
Traders can customize the number of Renko bars after which a position should be closed.
The default setting is 1 bar, meaning the trade will exit as soon as one Renko bar prints after the breakout.
This setting can be adjusted in the indicator’s configuration, allowing for longer or shorter trade durations depending on the trader’s strategy.
Profit Taker Signals
Profit Taker Long (🔼)
Automatically exits a long trade once the selected number of Renko bars have been printed after a bullish breakout.
Ensures traders capture profits quickly in a strong move without holding for potential pullbacks.
Profit Taker Short (🔽)
Automatically exits a short trade after the chosen number of Renko bars following a bearish breakdown.
Helps traders secure gains in short-lived momentum moves without overexposing themselves to reversals.
Why Use Profit Taker?
Perfect for Scalpers:
Allows fast in-and-out trades without waiting for trend confirmation or manual decision-making.
Works well in volatile markets where quick reversals can occur.
Reduces Emotional Bias:
Since the exit is predefined, traders don’t have to guess when to take profits, eliminating hesitation and fear of missing out (FOMO).
Adaptable to Different Strategies:
Traders can increase or decrease the number of bars based on market conditions.
Works effectively for breakout traders, scalpers, and momentum-based strategies.
Best Practices for Using Profit Taker
Adjust Bar Settings Based on Market Volatility
In fast-moving markets, 1-2 bars may be ideal for securing quick profits.
In strong trends, increasing the bar count allows capturing extended moves.
Use in Combination with Breakout & Rank Filter
Entering on a breakout signal and using Profit Taker ensures a structured exit.
The rank filter can help determine whether to hold for more bars or take profits quickly.
Optimize for Different Trading Styles
Aggressive scalpers may prefer 1-bar exits for rapid execution.
Trend-following traders may opt for 3-5 bars to ride stronger moves.
The Profit Taker Long & Profit Taker Short feature adds a mechanical, rule-based exit strategy, making it an essential tool for traders who value speed, efficiency, and discipline in their trading approach. Whether you're a high-frequency scalper or a momentum trader, this setting helps lock in consistent gains while reducing the risk of emotional trading.
