Forex for a trader
Renko forex trading strategy

Renko forex trading strategyTop 5 Best Forex Renko Trading Systems and Strategy. FREE DOWNLOAD Top 5 Best Forex Renko Trading Systems and Strategy – A Renko chart is a type of chart, developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for bricks, “renga”. A renko chart is constructed by placing a brick in the next column once the price surpasses the top or bottom of the previous brick by a predefined amount. For example… White bricks are used when the direction of the trend is up, while black bricks are used when the trend is down. This type of chart is very effective for traders to identify key supportresistance levels. Transaction signals are generated when the direction of the trend changes and the bricks alternate colors. Below are Top 5 Best Forex Renko Trading Systems and Strategy for you… How to Make Money Trading Forex Easily with Renko MACD Mirror Trading System. Learn about forex trading with Renko Trading System. To day we learn about How to Make Money Trading Forex Easily with Renko MACD Mirror Trading System . I chose this strategy because the tools involved in identifying trades are fairly intuitive even if you have never traded FX previously.

Use these NON-REPAINT Tools For Making The Perfect Trade Entry ( the best trading tools all traders MUST HAVE ) Use a demo account or a small live account first to practice this trading system DOWNLOAD TRADING SYSTEM. A Renko chart is a type of chart . developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for bricks, “renga”. Correctly Identify Forex Trend with Renko Bar Chart and Momentum Trading System. High Accuracy Renko Bar Chart Trading System . I will tell how to Correctly Identify Forex Trend with Renko Bar Chart Trading System – You might be familiar with renko charts. These are simply boxes that are plotted when price closes an “x” number of pips above or below the previous close. Advanced Simple Forex Renko Trading Trends With Moving Average.

Forex Renko Trading Trends Strategy With Moving Average – The System is based on a Renko Chart that predicts the price micro trends with amazing probability! In our opinion this trading tool works better than all other system that we’ve tried because it uses a brand new trading algorithm and micro trends determination system! The main principle of the indicator is a custom trading indicators composite + micro trend indicator + price action false signals filter – All in one! Renko Street Moving Averages Trading Strategy – How to Trade Forex Successfully Using Renko Charts. With many years of research using this system, we have now brought Renko Street Moving Averages Trading Strategy to a new level of excellence. Here is tutorial How to Install, Creating, and Setting Forex Renko Chart. Forex Training Group. Charts are essential in Forex trading. Nowadays you cannot trade Forex effectively without a chart. The most popular Forex charting style is the Japanese candlestick chart. Some other types of charts that are regularly used by traders include the line chart and the bar chart. Today, however, we will discuss another charting alternative – the Renko chart. In this lesson, we will illustrate what a Renko chart is and provide some additional trading tips and strategies for incorporating it into your trading.

What is a Forex Renko Chart ? A Renko chart is a specific type of graph for displaying price movements of a financial instrument. The chart consists of blocks (a. k.a. bricks) which are the same size. These blocks can be bearish and bullish as in a standard bar or candlestick chart. The reason that a Renko chart has individual blocks of the same size is because a Renko chart does not take time into consideration. The Renko chart has a setting parameter, which specifies the pips taken into consideration for each block. This parameter usually comes with the default value of 10 pips on the Metatrader platform. So, if the Renko chart is set to (10), this means that the next block would not be formed until the price action creates an increase or a decrease of at least ten pips. In this manner, the creation of the next brick on a Renko chart takes an indefinite period of time. The block could be formed in a second, a minute, a day or a week for example. Nobody knows for sure. What we do know, though, is that it will be exactly the number of pips specified within the Renko parameter that you set. Below you will see the difference between a standard Japanese candlestick chart and a Renko chart: The first graph is a Renko chart that illustrates the price action of the second graph, which is a Japanese candlestick chart.

See that the Renko chart smoothes the general price action. This way all the activity on the chart is presented with a more trending inclination. Types of Renko Charts. There are two types of Renko charts based on the calculation used for the indicator: The first Renko chart we will discuss is the HighLow type. This type of Renko chart takes into consideration every price action behavior. As the HighLow name suggests, it includes the price action between the highest and the lowest point on the chart. OpenClose Renko Charts. The second kind of Renko chart is the OpenClose type. This Renko style takes into consideration only the price moves which are included within the OpenClose range of the price action. Have you noticed that the Renko image example we showed above includes a few big candlewicks? This is so, because the chart only takes into consideration the Open and the Close of the different periods. In this manner, some of the price action is not included in the Renko blocks. Therefore, the ticks outside the Renko blocks are displayed with these candlewicks. Opening a Renko Chart in Metatrader. It might be a bit tricky in the beginning to open a Metatrader Renko chart.

So, I wanted to take a moment to discuss how to do so. First, you should download the MQL4 file of the Renko chart indicator. Then you should put the downloaded file into the “Expert” folder of your MT4 platform. To do this, you would simply click on “File” in your MT4 terminal. Then you should choose “Open Data Folder”. This will prompt a pop up folder on your screen. Then go to the following directory: “MQL4 -> Expert”. You would simply drop the file there. Then you would restart the MT4 terminal. When you restart and open the MT4 platform you should make sure that you have the “Navigator” panel open on the left side of the terminal. Then expand the “Expert Advisor” section in the “Navigator” panel. When you do this, you should see your Renko file there.

Before adding the file to your chart, you should make sure that you have started the “Expert Advisor” or “Auto Trading” button on the top of your MT4 terminal. If you have switched this ON, you can simply drag and drop the Renko file from the “Navigator” panel onto the chart you want to modify. After you do this, another window will pop up on the chart. This is the settings window of the Renko indicator you have just dropped on the chart. Go to the “Common” panel and put checkmarks on these lines: “Allow live trading” “Allow DLL imports” “Allow import of external experts” Then click “OK”. You may be thinking that nothing has changed, but on the top right corner of your chart you will see a text which gives you the Renko version you are using and a smiley face. Also, you will see in the upper left corner a text which tells you that you need to open a MT4 chart offline to make the tool work. This is what we will be doing now. Click on “File” again and choose “Open Offline”. A window will pop up, which contains different offline chart options. You should scroll and find the time frames listed in the upper left corner on the MT4 terminal. Voila! You now have an open Renko chart on your Metatrader 4 platform. Advantages of the Renko Chart in MT4. Any trader that has used Renko charting knows that it is very effective for gauging the price action of the instrument that you are watching. Let’s take a deeper look into some of the advantages of the Renko chart in MT4. Ability to Spot Trends Quickly. The Renko chart can clearly show the direction of the market. Since the chart basically smoothes the price action, we almost always have a present trend in front of us. On the image above you see the different price swings on the Renko chart.

Notice that there are no consolidations. There are smaller and bigger trends, but there are no overlapping ranges. Ideal for Support and Resistance Trading. The Renko chart is very effective for identifying support and resistance levels correctly. Since the price action of the Renko chart contains the price action of a pre-specified pip movement, support and resistance levels can be very clearly displayed. Below you will see an image which shows four levels on the chart. Notice that after the price interacts with each of them, we see the creation of a new directional move. The red circles on the chart show the moments when the Renko bars break an important level. As you see, each of these breakouts leads to the creation of a new trend. Opposite to this, the support, which is illustrated at the bottom of the chart is the beginning of a new upwards movement. After the price bounces twice from it, we see the creation of a new bullish trend. Easy-to-Find Chart Patterns.

As with support and resistance identification, chart patterns are also much easier to recognize on a Renko chart. Let’s take a look below: The Renko chart above shows four classical chart patterns. The blue lines illustrate a Rising Wedge pattern. As you can see, the price drops after breaking the lower wedge line. Then comes a bullish channel, which is illustrated with the red lines. Notice that the price action creates swings in the frames of the channel. After the bearish breakout, the price decreases. The next pattern is shown in green, and it is an Inverted Head and Shoulders pattern. After the creation of the second shoulder, the price increases again. The magenta figure is a Double Top pattern. The decrease which comes at the end proves the validity of the figure. Breakout Confirmation on Renko Charts. The basic function of the Renko chart is to provide a clearer level of price action analysis. One of the most popular methods of using the Renko chart is to trade breakouts.

Though this is a valid method, I would suggest that you confirm breakout signals on the Renko chart. Try to confirm a breakout with a second candle. If a Renko candle goes beyond a trend line make sure you see another candle, which extends beyond the breaking candle. Forex Trading with Renko Charts. Let’s now discuss a couple of trading strategies using Renko charts: Trend Line Breakout Renko Trading Strategy. As we have touched on a bit earlier, an effective way to trade with Renko charts is by spotting breakouts in trends. The Renko chart structure is very precise in building trends. As such, trend lines on a Renko chart are relatively accurate. So, a valid trendline breakout confirmed by a second Renko block should give us a reasonable amount of confidence for predicting the beginning of the trend reversal. Typically, you would wait to open a position until after a Renko bar breaks beyond a trend line and a second Renko bar extends beyond the breaking bar. Once this occurs, you should put a stop loss beyond the most recent or high or low swing point created prior the breakout. You can use price action based clues to hold onto the position until such time as the weight of evidence shifts in favor of the opposite direction. See the example below of how a trend breakout using the Renko chart would appear: Above you see the Renko chart of the EURUSD, which contains the period between May 28, 2013 and June 31, 2013. The image illustrates a strong bullish trend which eventually gets broken to the downside.

Notice that the trend line is very well positioned – one of the positives of Renko based trading systems. A fake breakout appears first, which is referenced by the red arrow. Shortly after that, on the subsequent test, you will see that a Renko block closes below the trend. A Renko candle goes beyond the trend line, and the next candle extends even lower. This would be an opportune place to sell the EURUSD Forex pair. You should place your stop loss order right above the highest swing point before the breakout. This is shown by the red horizontal line on the image above. As you see, the price action begins a to fall afterward. Let’s now shift into trade management mode: This illustration is the continuation of the price action after the trend breakout. The yellow lines on the image above show that the EURUSD enters a bearish channel corridor. The trade should be held as long as the Renko price action is located below the upper yellow bearish channel.

Of course, the breakout in the yellow channel should also be confirmed by a further block in the direction of the break. As you see, we did have an upside breakout of the channel, and the price action after this bullish breakout represented a strong reversal of the bearish trend. Fortunately, per our rules, the breakout of the upper line of the yellow bearish channel would have gotten us out of the trade at the right time. Support and Resistance Renko Strategy. This Renko strategy involves entering trades after the price action breaks an important horizontal support or resistance on the chart. If a support is broken downwards, you would be looking to short the Forex pair. If a resistance is broken upwards, you would want to buy the Forex pair. Don’t forget to confirm the breakout with the second Renko block. If you trade a support breakout, you would typically put a stop loss above a top, created prior the breakout. If you trade a resistance, you would typically put a stop below a bottom, created prior the breakout. Then the trade would be managed using simple price action based clues. So, let’s see how a trade using Support and Resistance breakouts with a Renko chart looks: Again, we have built the Renko chart on the EURUSD Forex pair. The image shows a resistance breakout.

The yellow horizontal line is a strong resistance level. When the price meets the yellow resistance for the 7 th time, we see a breakout. First, comes the breakout bar and then the confirmation. You can buy the EURUSD when the confirmation block is completed. Then you would want to place a stop loss order below the bottom prior the breakout. The red horizontal line shows this on our Renko chart. The price breaks the resistance and increases further. On the way up the price action creates a Head and Shoulders chart pattern. As you know, this pattern has a strong bearish potential. However, we need confirmation that the pattern is valid.

In this manner, the trade should be closed when the Renko price action breaks the blue neck line on the chart. Again, you don’t close the trade when a block breaks the blue neck line, but when a second block finishes below the breaking block. This is all shown in the red circle pointed with the red arrow and the “Close” text next to it. Take note that the yellow resistance is extremely accurate on the image. The level is very easy to recognize using this Renko chart structure. Also, the Head and Shoulders pattern we used to close the trade was also relatively clean on the chart. The Renko chart displays price action disregarding the time factor. The chart consists of blocks, which are also called bricks, or candles. The default parameter of the Renko chart is 10, which means that a block is formed only after the price moves 10 pips upwards or downwards. This setting can be changed per your preference. There are two types of Renko charts based on their calculation: HighLow Renko Charts – takes into consideration the highs and the lows on the chart OpenClose Renko Charts – takes into consideration the open and the close on the chart Some of the positive attributes of the Renko chart are: Very handy for spotting trends. Provides accurate support and resistance areas. Chart patterns are easy to recognize You should always confirm breakouts with a second Renko block – it needs to close beyond the breaking block. A couple of the approaches for trading with Renko Bars are: Trend Line Breakout Renko Trading Strategy Enter a trade when the price action breaks a trend and a second block breaks the breaking candle.

Put a stop beyond the last swing prior the breakout. Stay in the trade as long as the price is trending in your favor using simple price action rules. Support and Resistance Renko Strategy Enter a trade when the price action breaks a horizontal supportresistance level and a second block breaks the breaking candle. Put a stop loss beyond the last topbottom created prior the breakout through the supportresistance. Stay in the trade as long as the price is trending in your favor using simple price action rules. Take Your Trading to the Next Level, Accelerate Your Learning Curve with my Free Forex Training Program. Simple Renko Arrows Forex Trading Strategy. The currency market in most cases offers us little time to think through our decisions, considering the speed at which prices are being filled. Traders remain on the lookout for opportunities they can capitalize on and make profits. This is attainable only when you have a reliable trading strategy, and we have developed one you can obviously try out. Let’s take a look at the Simple Renko Arrows forex trading strategy to see how it really pans out on the activity chart and how you can make money of it. Chart Setup. MetaTrader4 Indicators: tipu_renko. ex4 (Input Variable Modified; Renko Mark=Arrows), fouraverage-indicator. ex4 (default setting) Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day. Recommended Trading Sessions: Any (London, New York, Tokyo) Currency Pairs: Any pair. Download. Buy Trade Example.

Strategy. Long Entry Rules. Initiate a buy entry if the following indicator or chat pattern gets displayed: If the lime histograms of the fouraverage-indicator. ex4 gets aligned above the 0.00 level within its indicator window, while a corresponding lime upward pointing arrow also forms below price bars (refer to Fig. 1.0), a buy signal is said to be in place. If the dodger blue upward pointing arrow of the tipu_renko. ex4 custom indicator forms on the activity chart as shown on Fig. 1.0, price is said to be pushed somewhat higher i. e. a signal to buy the designated currency pair. Stop Loss for Buy Entry: Place stop loss 3 pips below short-term support. Exit StrategyTake Profit for Buy Entry. Exit or take profit if the following rules or conditions takes precedence: If while a buy signal is running, the fouraverage-indicator. ex4 histogram turns red and gets positioned below the 0.00 level, while a corresponding red downward pointing arrow also forms above the candlesticks, an exit or take profit is recommended in this case. If the tomato downward pointing arrow of the tipu_renko.

ex4 custom indicator is seen on the activity chart as depicted on Fig. 1.0, it is a trigger to exit or take profit at once. Sell Entry Rules. Enter a sell order if the following holds sway: If the red histograms of the fouraverage-indicator. ex4 gets aligned below the 0.00 level within its indicator window, while a corresponding red downward pointing arrow also aligns above price bars as shown on Fig. 1.1, a sell signal is said to be in place. If the tomato downward pointing arrow of the tipu_renko. ex4 custom indicator forms on the activity chart as depicted on Fig. 1.1, price is said to be pressured lower i. e. a trigger to sell the designated forex pair. Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance. Exit StrategyTake Profit for Sell Entry. Exit or take profit if the following takes center stage: If during a sell signal the fouraverage-indicator.

ex4 histogram readjusts to lime above the 0.00 level, while a corresponding lime upward pointing arrow take shape below price bars, an exit or take profit is duly advised. If the dodger blue upward pointing arrow of the tipu_renko. ex4 custom indicator gets aligned below the candlesticks as illustrated on Fig. 1.1, it is a trigger to exit or take profit at without delay. Sell Trade Example. Free Download. About The Trading Indicators. The fouraverage-indicator. ex4 is a brand new forward-looking trend indicator designed by ExcStrategy team and it uses adaptive four-level averaging. It is a quite powerful and efficient adaptive tool designed to fit into changing market conditions. "I Show You How To Trade Forex With Zero Indicators!" Jerry (Chicago, IL) Commodity Trading Advisor. From: Jerry in Chicago, Commodity Trading Advisor Tuesday 9:36 a. m. Hi, my name is Jerry and I’m a Commodity Trading Advisor with a Series 3 and Series 34 license from Chicago.

Over the past 4 or 5 years I have provided invaluable training and coaching to 500+ forex traders just like yourself from all over the world. I teach them how to trade forex with my simple renko strategy for forex renko charts. I have finally developed a renko trading system which allows YOU to utilize my simple strategy and to “ Trade Forex With Zero Indicators! “. Yes, I said ZERO INDICATORS! After many years of helping frustrated currency traders I soon discovered many of these traders fail because of 2 reasons: Forex traders lack a simple trading method which gives them a profitable edge. They lack the personal discipline to exploit their profitable edge in the markets. Do you think you have the discipline to learn my renko strategy and execute it over and over for profits? If so, my renko trading method may be exactly what you are looking for. Look at the clean and simple picture below. This is a picture of one of my renko charts. How does my renko strategy make forex trading easier for YOU ? Simple.

I personally SHOW you how to identify a specific “buy” setup and a specific “sell” setup using my renko charts. Zero additional indicators! Just pure price action based on renko bars. I will teach you my proprietary renko bar formation patterns for both a buy and sell trade setup. These include both red and green forex renko bars. I wish it was as easy as just assuming every green box is a buy signal and every red box is a sell signal. But this is not the case, sorry. You will only experience many price whipsaws following such an assumption. My renko strategy solves this problem! I personally show and teach you a very specific combination of BOTH red and green forex renko bars for BOTH a buy signal and a sell signal. Just click the BUY NOW button below and as soon as you make payment you will receive an INSTANT DOWNLOAD! Or just keep reading and I will tell you more about my Forex Renko Charts Trading System below.

Are you ready to get started? First take a look at what one my clients in Australia had to say about my strategy in his own words. I simply took a screenshot of his testimony and posted it here for you to read: Perhaps you’re new to forex trading or maybe you’re an experienced trader with many years under your belt. Well it doesn’t matter in the end because my forex renko strategy is so simple to follow that anyone can do it . Have a look at these two pictures: Chart #1 - Typical Candlestick Chart. Chart #2 - Renko Chart. Now which one do you think would be easier to trade? Both charts show exactly the same information. So tell me, where should you enter and exit a trade on Chart #1? My Renko trading system teaches you very simple yet specific setups for both buy trades and sell trades. The setup uses a combination of both red and green renko bars. You can use this strategy with ANY currency trading pair, ANY time frame, ANY time of the day. Now, check out the following chart: Candlestick Chart using MACD indicator. Looking at the chart above, notice how the MACD indicator crossovers (noted in the yellow circles) happens only AFTER a big jump or drop in price. So if you were to rely on this for a trade entry, you’d miss the big move in price. Why is that? Because it’s a LAGGING INDICATOR!

How does my renko strategy make trading forex easier and more effective for you? Simple! I teach you the exact buy setups and sell setups using ONLY renko charts. ZERO INDICATORS + ZERO GUESSING = MORE WINNING TRADES! It will take you 15 minutes to read my full color manual and another 15 minutes to download & install a renko trading platform (if your current broker does not support renko charts). So, do you have 30 minutes to learn my Forex Renko Trading System? A 90% Winning Strategy - Simple but effective. Guys ! we all know about Renko Charts, you can use this strategy which is really basic, simple but very very effective. For making good profit it's not that you need loaded Indicators and systems, sometimes a very basic system turns to be effective. Here i am discussing a system which always works. Clear entry and exit rules, you can use this system for scalping on 5 minutes to 15 Minutes charts as well but i suggest go with 1Hr chart for maximum profit.

Requirements 1) Renko Chart 2) 20 Period Moving average - Simple or Expo no matter. 3) MACD with standard settings. Now let's see when we have to take Long or Short entry: Long Entry Rule: Renko Chart create a Blue Candle Which is crossing above 20 period Moving Average then take Long on closing of candle. - EMA shape points upwards and MACD crossing up for Long entry. Exit rule is Simple, as Renko chart form first Red candle exit trade on closing of candle. Short Entry Rule: Renko Chart create a Red Candle Which is crossing Below 20 period Moving Average then take Short on closing of candle. - EMA shape points Downside and MACD crossing down for Short entry. Exit rule is Simple, as Renko chart form first Blue candle exit trade on closing of candle. Collection of profitable Renko trading strategies. The purpose of this section is to provide the different renko trading systems that are free to use for the trader. Whether you like price action or indicators, our collection of forex renko trading systems have it all. It best to read this section after you are familiar with the basics of renko charting. Renkostreet trading system review – Does it really work? The Renkostreet trading system is marketed as a top renko trading strategy. But does this trading system live up to its name? Read this review of Renkostreet trading system and find out the truth.

Simple forex trading strategy with Renko charts. A simple forex strategy for beginners and experienced traders that makes use of no technical indicators. Learn how you can trade with this simple forex trading strategy with a minimum of 1:2 risk reward set up. If you are a patient trader, then you can make lots of money with this simple but efficient trading strategy. Renkomaker pro trading system Review. Detailed review of the Renkomaker Pro trading system for Renko charts. Read and learn how to trade with Renko maker pro and whether this trading system is as easy to trade as it is claimed. Also learn about potential drawbacks in trading with the Renko maker forex trading strategy. Equidistant price channel trading strategy on Renko Charts. The equidistant price channel Renko trading strategy is a price action based trading strategy that is used to trade the counter trend moves. Using the equidistant price channel, traders can identify potential short term reversals that take place within a trend.

Learn more on how to trade price reversals on Renko charts using the equidistant price channel. Renko Chart Parabolic SAR Retracement strategy. This Renko trading strategy is based on trading the pull backs in a trend, by using the parabolic SAR indicator and combining it with Renko price action. Read how to trade this rather simple Renko trading strategy. Renko scalping with 15-minute close. Make 20 – 50 pips every day with this simple to use and easy to understanding scalping set up with Renko charts. Learn how to make profitable trades intraday with a high rate of success using Renko charts and a trading strategy of your choice. Renko Moving Average Crossover system made easy. Learn how you can make use of one of the most simplest of trading strategies. Apply two moving averages to Renko charts and use the methods outlined in this article to trade one of the most powerful set ups you can find. Mini-median line with Median Renko chart – A scalping strategy. Mini-median lines and median Renko charts is a simple but powerful trading strategy that can be used to scalp strong trending markets. Learn how to apply this Renko trading strategy.

Trading Parabolic SAR pull backs with Renko Charts. The Parabolic SAR Pull back trading strategy with Renko charts offers traders a unique way to scalp the markets. This Renko trading strategy offers a favorable riskreward ratio with consistent profits. For traders who want to make a fixed number of pips per day, this renko trading strategy is worth exploring. Simple Renko Scalping System. So you are an intraday trader! You prefer to take small profits when the markets offer an opportunity and you are content with taking small profits over a short period of time. In this article read how this simple Renko trading strategy can offer traders a simple way to make profits scalping with Renko charts. Forex Training Group.

Charts are essential in Forex trading. Nowadays you cannot trade Forex effectively without a chart. The most popular Forex charting style is the Japanese candlestick chart. Some other types of charts that are regularly used by traders include the line chart and the bar chart. Today, however, we will discuss another charting alternative – the Renko chart. In this lesson, we will illustrate what a Renko chart is and provide some additional trading tips and strategies for incorporating it into your trading. What is a Forex Renko Chart ? A Renko chart is a specific type of graph for displaying price movements of a financial instrument. The chart consists of blocks (a. k.a. bricks) which are the same size. These blocks can be bearish and bullish as in a standard bar or candlestick chart. The reason that a Renko chart has individual blocks of the same size is because a Renko chart does not take time into consideration. The Renko chart has a setting parameter, which specifies the pips taken into consideration for each block. This parameter usually comes with the default value of 10 pips on the Metatrader platform.

So, if the Renko chart is set to (10), this means that the next block would not be formed until the price action creates an increase or a decrease of at least ten pips. In this manner, the creation of the next brick on a Renko chart takes an indefinite period of time. The block could be formed in a second, a minute, a day or a week for example. Nobody knows for sure. What we do know, though, is that it will be exactly the number of pips specified within the Renko parameter that you set. Below you will see the difference between a standard Japanese candlestick chart and a Renko chart: The first graph is a Renko chart that illustrates the price action of the second graph, which is a Japanese candlestick chart. See that the Renko chart smoothes the general price action. This way all the activity on the chart is presented with a more trending inclination. Types of Renko Charts. There are two types of Renko charts based on the calculation used for the indicator: The first Renko chart we will discuss is the HighLow type. This type of Renko chart takes into consideration every price action behavior. As the HighLow name suggests, it includes the price action between the highest and the lowest point on the chart. OpenClose Renko Charts. The second kind of Renko chart is the OpenClose type.

This Renko style takes into consideration only the price moves which are included within the OpenClose range of the price action. Have you noticed that the Renko image example we showed above includes a few big candlewicks? This is so, because the chart only takes into consideration the Open and the Close of the different periods. In this manner, some of the price action is not included in the Renko blocks. Therefore, the ticks outside the Renko blocks are displayed with these candlewicks. Opening a Renko Chart in Metatrader. It might be a bit tricky in the beginning to open a Metatrader Renko chart. So, I wanted to take a moment to discuss how to do so. First, you should download the MQL4 file of the Renko chart indicator. Then you should put the downloaded file into the “Expert” folder of your MT4 platform. To do this, you would simply click on “File” in your MT4 terminal. Then you should choose “Open Data Folder”. This will prompt a pop up folder on your screen. Then go to the following directory: “MQL4 -> Expert”. You would simply drop the file there. Then you would restart the MT4 terminal.

When you restart and open the MT4 platform you should make sure that you have the “Navigator” panel open on the left side of the terminal. Then expand the “Expert Advisor” section in the “Navigator” panel. When you do this, you should see your Renko file there. Before adding the file to your chart, you should make sure that you have started the “Expert Advisor” or “Auto Trading” button on the top of your MT4 terminal. If you have switched this ON, you can simply drag and drop the Renko file from the “Navigator” panel onto the chart you want to modify. After you do this, another window will pop up on the chart. This is the settings window of the Renko indicator you have just dropped on the chart. Go to the “Common” panel and put checkmarks on these lines: “Allow live trading” “Allow DLL imports” “Allow import of external experts” Then click “OK”. You may be thinking that nothing has changed, but on the top right corner of your chart you will see a text which gives you the Renko version you are using and a smiley face. Also, you will see in the upper left corner a text which tells you that you need to open a MT4 chart offline to make the tool work. This is what we will be doing now. Click on “File” again and choose “Open Offline”. A window will pop up, which contains different offline chart options.

You should scroll and find the time frames listed in the upper left corner on the MT4 terminal. Voila! You now have an open Renko chart on your Metatrader 4 platform. Advantages of the Renko Chart in MT4. Any trader that has used Renko charting knows that it is very effective for gauging the price action of the instrument that you are watching. Let’s take a deeper look into some of the advantages of the Renko chart in MT4. Ability to Spot Trends Quickly. The Renko chart can clearly show the direction of the market. Since the chart basically smoothes the price action, we almost always have a present trend in front of us. On the image above you see the different price swings on the Renko chart. Notice that there are no consolidations. There are smaller and bigger trends, but there are no overlapping ranges. Ideal for Support and Resistance Trading. The Renko chart is very effective for identifying support and resistance levels correctly. Since the price action of the Renko chart contains the price action of a pre-specified pip movement, support and resistance levels can be very clearly displayed. Below you will see an image which shows four levels on the chart. Notice that after the price interacts with each of them, we see the creation of a new directional move.

The red circles on the chart show the moments when the Renko bars break an important level. As you see, each of these breakouts leads to the creation of a new trend. Opposite to this, the support, which is illustrated at the bottom of the chart is the beginning of a new upwards movement. After the price bounces twice from it, we see the creation of a new bullish trend. Easy-to-Find Chart Patterns. As with support and resistance identification, chart patterns are also much easier to recognize on a Renko chart. Let’s take a look below: The Renko chart above shows four classical chart patterns. The blue lines illustrate a Rising Wedge pattern. As you can see, the price drops after breaking the lower wedge line. Then comes a bullish channel, which is illustrated with the red lines. Notice that the price action creates swings in the frames of the channel. After the bearish breakout, the price decreases. The next pattern is shown in green, and it is an Inverted Head and Shoulders pattern.

After the creation of the second shoulder, the price increases again. The magenta figure is a Double Top pattern. The decrease which comes at the end proves the validity of the figure. Breakout Confirmation on Renko Charts. The basic function of the Renko chart is to provide a clearer level of price action analysis. One of the most popular methods of using the Renko chart is to trade breakouts. Though this is a valid method, I would suggest that you confirm breakout signals on the Renko chart. Try to confirm a breakout with a second candle. If a Renko candle goes beyond a trend line make sure you see another candle, which extends beyond the breaking candle. Forex Trading with Renko Charts. Let’s now discuss a couple of trading strategies using Renko charts: Trend Line Breakout Renko Trading Strategy. As we have touched on a bit earlier, an effective way to trade with Renko charts is by spotting breakouts in trends. The Renko chart structure is very precise in building trends. As such, trend lines on a Renko chart are relatively accurate.

So, a valid trendline breakout confirmed by a second Renko block should give us a reasonable amount of confidence for predicting the beginning of the trend reversal. Typically, you would wait to open a position until after a Renko bar breaks beyond a trend line and a second Renko bar extends beyond the breaking bar. Once this occurs, you should put a stop loss beyond the most recent or high or low swing point created prior the breakout. You can use price action based clues to hold onto the position until such time as the weight of evidence shifts in favor of the opposite direction. See the example below of how a trend breakout using the Renko chart would appear: Above you see the Renko chart of the EURUSD, which contains the period between May 28, 2013 and June 31, 2013. The image illustrates a strong bullish trend which eventually gets broken to the downside. Notice that the trend line is very well positioned – one of the positives of Renko based trading systems. A fake breakout appears first, which is referenced by the red arrow. Shortly after that, on the subsequent test, you will see that a Renko block closes below the trend. A Renko candle goes beyond the trend line, and the next candle extends even lower. This would be an opportune place to sell the EURUSD Forex pair. You should place your stop loss order right above the highest swing point before the breakout. This is shown by the red horizontal line on the image above. As you see, the price action begins a to fall afterward.

Let’s now shift into trade management mode: This illustration is the continuation of the price action after the trend breakout. The yellow lines on the image above show that the EURUSD enters a bearish channel corridor. The trade should be held as long as the Renko price action is located below the upper yellow bearish channel. Of course, the breakout in the yellow channel should also be confirmed by a further block in the direction of the break. As you see, we did have an upside breakout of the channel, and the price action after this bullish breakout represented a strong reversal of the bearish trend. Fortunately, per our rules, the breakout of the upper line of the yellow bearish channel would have gotten us out of the trade at the right time. Support and Resistance Renko Strategy. This Renko strategy involves entering trades after the price action breaks an important horizontal support or resistance on the chart. If a support is broken downwards, you would be looking to short the Forex pair. If a resistance is broken upwards, you would want to buy the Forex pair. Don’t forget to confirm the breakout with the second Renko block.

If you trade a support breakout, you would typically put a stop loss above a top, created prior the breakout. If you trade a resistance, you would typically put a stop below a bottom, created prior the breakout. Then the trade would be managed using simple price action based clues. So, let’s see how a trade using Support and Resistance breakouts with a Renko chart looks: Again, we have built the Renko chart on the EURUSD Forex pair. The image shows a resistance breakout. The yellow horizontal line is a strong resistance level. When the price meets the yellow resistance for the 7 th time, we see a breakout. First, comes the breakout bar and then the confirmation. You can buy the EURUSD when the confirmation block is completed. Then you would want to place a stop loss order below the bottom prior the breakout. The red horizontal line shows this on our Renko chart.

The price breaks the resistance and increases further. On the way up the price action creates a Head and Shoulders chart pattern. As you know, this pattern has a strong bearish potential. However, we need confirmation that the pattern is valid. In this manner, the trade should be closed when the Renko price action breaks the blue neck line on the chart. Again, you don’t close the trade when a block breaks the blue neck line, but when a second block finishes below the breaking block. This is all shown in the red circle pointed with the red arrow and the “Close” text next to it. Take note that the yellow resistance is extremely accurate on the image. The level is very easy to recognize using this Renko chart structure. Also, the Head and Shoulders pattern we used to close the trade was also relatively clean on the chart. The Renko chart displays price action disregarding the time factor. The chart consists of blocks, which are also called bricks, or candles.

The default parameter of the Renko chart is 10, which means that a block is formed only after the price moves 10 pips upwards or downwards. This setting can be changed per your preference. There are two types of Renko charts based on their calculation: HighLow Renko Charts – takes into consideration the highs and the lows on the chart OpenClose Renko Charts – takes into consideration the open and the close on the chart Some of the positive attributes of the Renko chart are: Very handy for spotting trends. Provides accurate support and resistance areas. Chart patterns are easy to recognize You should always confirm breakouts with a second Renko block – it needs to close beyond the breaking block. A couple of the approaches for trading with Renko Bars are: Trend Line Breakout Renko Trading Strategy Enter a trade when the price action breaks a trend and a second block breaks the breaking candle. Put a stop beyond the last swing prior the breakout. Stay in the trade as long as the price is trending in your favor using simple price action rules. Support and Resistance Renko Strategy Enter a trade when the price action breaks a horizontal supportresistance level and a second block breaks the breaking candle. Put a stop loss beyond the last topbottom created prior the breakout through the supportresistance. Stay in the trade as long as the price is trending in your favor using simple price action rules. Take Your Trading to the Next Level, Accelerate Your Learning Curve with my Free Forex Training Program. Top 5 Best Forex Renko Trading Systems and Strategy. FREE DOWNLOAD Top 5 Best Forex Renko Trading Systems and Strategy – A Renko chart is a type of chart, developed by the Japanese, that is only concerned with price movement; time and volume are not included.

It is thought to be named for the Japanese word for bricks, “renga”. A renko chart is constructed by placing a brick in the next column once the price surpasses the top or bottom of the previous brick by a predefined amount. For example… White bricks are used when the direction of the trend is up, while black bricks are used when the trend is down. This type of chart is very effective for traders to identify key supportresistance levels. Transaction signals are generated when the direction of the trend changes and the bricks alternate colors. Below are Top 5 Best Forex Renko Trading Systems and Strategy for you… How to Make Money Trading Forex Easily with Renko MACD Mirror Trading System. Learn about forex trading with Renko Trading System. To day we learn about How to Make Money Trading Forex Easily with Renko MACD Mirror Trading System . I chose this strategy because the tools involved in identifying trades are fairly intuitive even if you have never traded FX previously. Use these NON-REPAINT Tools For Making The Perfect Trade Entry ( the best trading tools all traders MUST HAVE ) Use a demo account or a small live account first to practice this trading system DOWNLOAD TRADING SYSTEM. A Renko chart is a type of chart . developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for bricks, “renga”. Correctly Identify Forex Trend with Renko Bar Chart and Momentum Trading System.

High Accuracy Renko Bar Chart Trading System . I will tell how to Correctly Identify Forex Trend with Renko Bar Chart Trading System – You might be familiar with renko charts. These are simply boxes that are plotted when price closes an “x” number of pips above or below the previous close. Advanced Simple Forex Renko Trading Trends With Moving Average. Forex Renko Trading Trends Strategy With Moving Average – The System is based on a Renko Chart that predicts the price micro trends with amazing probability! In our opinion this trading tool works better than all other system that we’ve tried because it uses a brand new trading algorithm and micro trends determination system! The main principle of the indicator is a custom trading indicators composite + micro trend indicator + price action false signals filter – All in one! Renko Street Moving Averages Trading Strategy – How to Trade Forex Successfully Using Renko Charts. With many years of research using this system, we have now brought Renko Street Moving Averages Trading Strategy to a new level of excellence. Here is tutorial How to Install, Creating, and Setting Forex Renko Chart. Renko and Stochastics Team up for Winning Forex Trades. Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets. We'll email you login details shortly. You are subscribed to Gregory McLeod. You can manage you subscriptions by following the link in the footer of each email you will receive. An error occurred submitting your form. Please try again later. Renko reduces noise from violent price swing found in the Forex market Renko and Stochastics can help traders stay with the trend longer Buy and sell signals on Stochastics are easier to see on Renko charts. This is the third in a series of articles discussing Forex Renko Bars . We have gone over how to install and use this often neglected charting system.

For years, Renko charts have lingered in the shadows of its cousins, the line chart, bar chart, and Japanese Candlestick chart. Even esoteric Heiken Ashi charts are better known. But Renko is uniquely simplistic as it removes the dimension of time and volatility from the chart to allow traders to recognize the trend, make fewer trading mistakes, and stay with the trend longer. Renko also illustrates the ability of a currency to sustain consistent price moves. Learn Forex: GBPCHF Forex Renko Chart with Stochastics. (Chart Created using Marketscope 2.0 charts) The addition of the stochastics indicator is like adding high definition stereo to an already top-of-the-line u ltra high-definition television. You can trade Renko bars by themselves using the system of long after two bricks of the same color exit the trade when a brick of the opposite color appears. However, Stochastics gives an added visual confirmation that can give traders confidence in placing a trade. Notice how slow stochastics with setting of 14, 3, 3 in the above example of the GBPCHF 5-pip step Renko chart pinpoints the exact turning points. A trader has three reasons to take a long trade; a rising uptrend, two consecutive blue bars, and stochastics crossing up from the ‘20’ horizontal reference line. The more reasons that traders can line up to support their decision to go long or short, the better the trade becomes. In addition, notice how the stochastic %K and %D lines flow smoothly from peak to valley without the erratic moves in between seen on other charts.

This eliminates the guesswork and distractions allowing traders to focus on important decision making areas. In addition, stochastics can be used with Renko to take profit on trades or to tighten stops. In an uptrend as stochastics moves above the ‘80’ horizontal reference line the indicator is in an overbought region. Traders must remember that stochastics can remain oversold for an extended amount of time and that it is not a reason to get short. However, savvy traders may want to protect profits by moving stops just below the previous Renko “brick” or close part of the position once stochastics moves into the overbought region. The appearance of a red would be the clear signal to exit and look for the next trade. Making a good thing better is how we can describe the addition of stochastics to Renko charts. Traders can derive the benefits of additional visual confirmation and signaling of turning points as well as money management cues. Stochastics and Forex Renko charts are a winning combination!

--- Written by Gregory McLeod, Trading Instructor. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Renko Trading Strategy Using Technical Analysis. A Renko trading chart looks like a candlestick chart with no wicks or tails and with each bar having the same size, high to low. For traders who’ve never traded a Renko trading strategy either in Forex trading, Futures or even Stocks, you may be a little confused as to how to trade them. Renko bars are called various things, bricks and boxes, and each box size is the same depending on the setting the trader is using. You only see the open and close with these bricks so if you need a trading strategy that takes into account the days highs and lows, Renko trading may not be for you. The consecutive bricks do not overlap and they are independent of the time frame you are using for any other strategy. Thinking of the box size, a ten pip Renko chart will draw a new brick after price moves ten pips (Forex) above or ten pips below the last bar. That also means that price may move nine pips higher or nine pips lower than the last bar and still not complete a new brick. I. In effect there is up to a 28 pip price range before a new brick is drawn and that is something we need to keep in mind when placing our entries and stops . Keep in mind that price is still used and a Renko bar is simply another chart type that may or may not prove useful to you. Figure 2 shows price movement prior to and after completion of a new brick. Notice that once the brick completes all prior price movement is hidden. We don’t see how high or how low price moved before the brick closed. It should be mentioned that there are alternative versions of the Renko chart that will show the wicks but we will not cover those here. Since the bricks are drawn based on price action it follows that these charts are also time independent. Depending on the market and size of the bricks it might take minutes, hours, or days for a single brick to be drawn.

You’ll need to experiment with the brick size to find one that gives you intervals that work for you. KEY POINT: It is the brick size that matters with Renko bars. Time frame is not taken into consideration. Renko Bars Cut Through Noise. Renko charts are great for swing trading as they give a clear indication of trends, devoid of noise. In an up trend or rally we have a series of hollow bricks, in a down trend or selloff a series of solid bricks as seen in Figure 3. It’s always easy to detect pullbacks and resumption of trend in a Renko chart and consolidation areas are clearly delineated. This feature of Renko can help cut down on the amount of subjective interpretation a trader will have when looking at a trading chart. Less discretion = More consistency. Renko Trading Strategy – Keep It Simple. You can add indicators to a Renko charts just as you would to any other chart type, but perhaps the best way to use them is also the simplest: using supportresistance and trend lines. Figure 4 shows an example in the EURUSD. We’re using ten pip bricks in this example and the rectangle indicates a clear consolidation between 1.1200 and 1.1260. In this case we would wait for a new brick to close above or below the consolidation zone and then enter on the breakout. It’s not very often you will see such defined support and resistance areas in consolidation but that is another plus to use Renko! Renko Bars And Trend Lines.

In Figure 5 we see a simple application of trend line breaks with Renko charts. Whenever a new brick closes above or below the trend line we enter a trade in the new direction. To avoid whiplashes we wait for a two brick break before entering the trade but we exit quickly on a single brick break. You can see how clean the chart is and how all the noise is removed to give us easy and unambiguous entries and exits. In this example using ten pip bricks we booked two bricks (20 pips) of profit in the first leg, five bricks (50 pips) on the second and none on the third. Quick And Simple Trend Direction. It’s also possible to use Renko charts simply to confirm the overall direction of the market while trading your current strategies. A 25 or 50 pip Renko size is good for swing traders. Figure 6 is a 50 pip Renko chart of the EURUSD and you can see how it would have kept you in the strong trending moves back in May and June and how we’ve been consolidating the past three months. You may want to investigate using a multiple time frame approach where you trade the direction of the higher time frame trend on the lower time frames. Renko Charts Are Not For Beginning Traders. They can be difficult to trade because of the relatively large price movement that can take place before a new brick is actually completed. You need to be patient and wait for the brick to close. I suggest you experiment and monitor them alongside your usual strategy.

Look for the trending moves, identify the consolidation boundaries and see how those insights could improve your current trading decisions. Experiment also with the simple strategies for trading trends, reversals and breakouts with Renko charts. Once mastered Renko charts become a powerful tool for your trading toolbox. I found this really great video about Renko Trading and it comes with a Metatrader plugin so you can use Renko on that platform!



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