Hi, I am interested in Renko Street indicator. Forex news from InstaForex. However, we need confirmation that the pattern is valid.
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. This will prompt a pop up folder on your screen. Then go to the following directory: You would simply drop the file there. Then you would restart the MT4 terminal. When you do this, you should see your Renko file there. 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.
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. 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. You now have an open Renko chart on your Metatrader 4 platform. 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.
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. 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. As with support and resistance identification, chart patterns are also much easier to recognize on a Renko chart. 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.
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. 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: 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. Showing Trend of the recent market. This indicator window show us red-lime signals where red color is sell signal and lime is buy signal.
Same with other indicators, we can not use single signal from this indicator only, it should be combined by other. Support sound alert, email alert and window pop alert. There are multiple choices of template. You can use one of them and they all are same, the different is the display.
We need this EA when installing Renko Chart only. The place is in Time Frame M1. Not for Opening Position or making automatic trading. We recommended to use default setting Renko Box 10, under this value might the system provide false signals.
Image above show us that EA run properly signed by notifications at the top left and top right on your M1 chart. How to use the system. You will get alert immediatelly every these 3 indicators have the same signal and confirmed each other. You will not recieve signal alert sent via email before setting up your email in your MT4. You need email that support SMTP, example: Take profit on the horizontal line above your position. Or pips before the horizontal line above your position.
Stop Loss on the Horizontal Line below your posistion. Take Profit on the horizontal line below your position. Or pips before the horizontal line below your position.
Stop loss on the horizontal line above your position. If you have take profit with long distance from your position,you might want to save your trade by trailingstop. This trailingstop will move your SL to save your profit. Pips by pips depending on your setting. We should thank God That has given us the gift of a Trading Art. Nobody knows exactly what is the next trend and there is no perfect system around the world. Let us enjoy how wonderful the art of trading.
Either loss of Profit. Consider before making decision. Once you make the OP, there are two options that you can not avoid them: So, I suggest you to place your Stop Loss and Take Profit then let your position runs from start to finish.
I recommend you to trade following a trend , against the trend will make you very risky trade. You get alert does not mean that you have to open your position. Always look at the current trend. Simply, zoom out your chart and you will see the current trend. The system uses Renko Box It might need long time to wait till alert display on your chart.
To solve this,you can open several pairs at the same time. It can save your time. But note that so many pairs could make your mt4 runs heavy even crashed. Example more than 10 pairs.
My answer is you are free to choose one of them depending on recent market condition where you place your position. Otherwise, you can trade with 2 positions with each half of your lot, one with tp1 and one with tp2. Please try the system in Demo first , before doing on real account. If you think that you have been able to drive your chart by the system, you can do trade in real. Can I use it to trade Gold? Can I also test run the system limited version before final payment?
Thans for this renko indicator. Your email address will not be published. Leave this field empty.
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