What are Renko Charts?.
Renko charts. For those that don't know renko plots bars differently to candles. Each bar represents like a fixed price drop, say $ If you drop by $, then it plots 4 red bars (4 x $), and if it increases by $ it plots 5 green bars (5 x $). Stock Charts & Forex Charts. Made with. From the creators of MultiCharts. Select. Renko charts are commonly applied to stocks, forex, futures and ETF’s. You can even apply Renko charting analysis to the bond markets as well, if you please. For example this article shows you how to trade futures using Renko charts.
In my book and in several of my live events, I've mentioned how The Anniversary Trade was my bread and butter when I finally became a successful Forex trader. Depending on which crossover you trade, your entry would have been at 1. If you wait until the 16 white crosses through the 60 Blue your entry would be at 1. Both reasonable entries and both would put you in position to grab or so pips this move made. So looking back at the various results, you can see that any of the indicators got you in at pretty good prices Using Support and Resistance was the least successful trading tool for this particular trade All of your indicators need price to move pips before they start triggering trades.
Since most of us are on quests just to make pips, it just kills me to see pips get passed by while waiting for my indicators to kick in. If there was some way to get in on a move on the very ground floor or at least the mezzanine I could have my pips already banked before the indicators began getting everyone else into the trade, and I could either close out the trade happily, I might add or hang in and grab a few extra pips as the momentum kicked in from all the other traders around the world jumping in when THEIR indicators started giving them the same signals.
I've spent months years, even trying just about every indicator known to man or beast, using every conceivable setting I can think of, and have reached the conclusion that just such an indicator does not exist. Last week, I learned something shocking: I was right all along. What I spent years looking for and finally found is called Renko Charting.
It's a type of chart developed by the Japanese, and brought to the western world by Steve Nison the guy who actually "wrote the book" on using candlesticks for trading.
I'm not going to get too deep into all the theory behind how these charts differ from "normal" candlesticks The first thing I think you'll notice on these charts is the complete lack of "noise" that you see on regular candlestick charts.
No long wicks, no protracted periods of sideways movement. Pretty much just up or down. Sometimes the Up moves last 1 or 2 candles, sometimes they last 8 or more candles and of course, the same goes for downward moves as well. If you are an aggressive trader, you get in the first time you see a blue candle or a red candle close meaning the previous candle was the opposite color.
You stay in until the color changes again. Or you can wait for two or even three candles to close, to make sure the trend is established, and then get in. Obviously, by waiting you are getting a worse price than you would get by jumping in on the first color change, but you are also avoiding getting into a set of whipsaw trades that do nothing but knock you out of trade after trade.
And that can happen when price is in a tight trading range. In this case, the first blue candle closed at 1. That is 19 pips before you got the earliest signals from the other indicators I mentioned. The second candle closed at 1. If you are a more conservative type trader, there are a couple of other indicators you can add to the charts to give you added confidence before you place a trade. In the videos I created for using Renko, I'll show you the exact indicators I use, with their special settings, that get me into the best trades possible and make earning 30 pips on a trade as easy as pushing a button and walking away.
The other issue is where to get out of the trade. You can see there were four red candles interspersed along the upward move. There are a few ways to deal with this, but I'm not going to bother getting into it here. The quiz question had to do with entries. But rest assured that there are simple and effective ways to stay in a trade and bank as many pips as there are for the taking, if you have the guts to stay in the trade.
In the videos, I go over my exit strategy in full detail. I only trade 1 mini-lot right now, but I paid off my purchase in the first week of trading, and after just three weeks, I have almost doubled my account. This is so simple to understand and works so well, I do not understand why all traders are not using this method to spot winning trades.
I hope you find my testimonial useful. Thanks for your email; no, you do not need to issue a refund for a duplicate charge. He said he hadn't used it, but he knew a couple of traders who were having some success, so he thought it might be a good way for me to start. Read this review of Tradesignal. Are you looking for a cheap but reliable alternative to online Renko charting?
In this review, we take a look at the custom Renko charts that are offered by Stockcharts. The JForex platform is a Java based trading and charting software.
It offers native support for Renko charts. In this review, learn how you can use the in-built Renko charts and trade with the JForex trading platform which is offered by Dukascopy. Forex Tester 3 is very likely going to be a top hit among traders, even more so with Renko traders. With the latest feature upgrade now offering native Renko charts, traders can spend endless hours fine tuning their manual or automated trading strategies using Forex Tester 3.
How to install Renko charts and mean Renko charts on the cTrader trading platform. This step by step tutorial gives you the details on using Renko charts for cTrader. This article takes a closer look at the Ninjatrader median renko chart plugin. MT5 Median Renko chart indicator for the MT5 trading platform is a versatile tool, useful to trade with median Renko charts.
This article takes a detailed look at how you can trade with median renko charts on MT5 trading platform. Multicharts Renko bar review Posted by ranga on April 30, Read More Multicharts is a rather expensive but a professional grade charting and trading platform that is broker independent.