Renko Charts Indicator
Renko Charts indicator for MT4 reduces noise and shows BULLISH and BEARISH trends and provides best BUY and SELL forex trading signals.
CATEGORIES: MT4, PATTERNS, INFORMATIONAL
Updated on: 13.11.2023
The Renko Charts indicator for MT4 derives the price data and generates Renko bricks. It provides a noiseless forex trading chart while compared to a candlestick or bar chart. As a result, the Renko charts display clear trends and precise support and resistance levels. So forex traders can produce the best results while using any trend-based forex trading strategy and ride them as long as the trend is prudent.
The indicator is best suited for new and advanced forex traders. New forex traders can visually understand the BULLISH or BEARISH market trend and place the BUY and SELL trades accordingly. Similarly, advanced traders can use technical indicators and trade successfully. The indicator works on all intraday timeframes and daily, weekly and monthly charts. Additionally, the indicator is free to download and easy to install.
Renko Charts Indicator For MT4 Trading Setup
The above EURUSD H1 chart shows the Renko Charts Indicator for MT4 in action. The indicator displays the BULLISH bricks in BLUE and the BEARISH bricks in RED. A new Renko brick is formed when the price moves the predetermined pip value input in the indicator settings. The indicator places the new Renko brick 45 degrees angled up or down from the previous brick.
Renko charts mainly display very clear trend direction and the support and resistance levels which are usually difficult to interpret in a candlestick chart or bar chart. As a result, forex traders tend to trade the Renko charts using any technical trading strategy which involves the support and resistance levels and trend direction.
The trend change from a BEARISH to BULLISH market corresponds to the shift of Renko brick from RED to BLUE. So forex traders can place a BUY position with a stop loss below the previous low. Generally, forex traders tend to ride the trend and hold the position until an opposite shift in market trend. On the other hand, the appearance of RED brick generates a SELL signal and warrants a new trade.
In a ranging market, the color of Renko bricks changes frequently and may lead to whipsaws. So, Forex traders use multiple methods to confirm the trend change using the number of bricks which opened in the trend direction. As a result, forex traders may use 1 or 2 or 3 consecutive bricks to confirm a BULLISH or BEARISH trend change and place a BUY or SELL trade accordingly.
Most indicators that work on the candlestick or bar charts may work differently in the Renko charts as they do not have the time factor. So forex traders should apply and experiment with a different technical trading strategy.
Conclusion
The Renko charts indicator for MT4 does not take the time factor into account similarly the HIGH and LOW within a timeframe are invisible. Thus it may hide information that may be necessary for some forex technical trading strategies. Nevertheless, they are followed and practiced by many forex trend traders. Finally, forex traders can download the indicator for free and install them with ease.
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