The Renko charts indicator MT4 informs the trader how much the market has moved and how far it has changed, based on the trader’s settings for the Renko chart indicator. This indicator is handy for traders who are just beginning their journey.
How does Renko chart Indicator work?
Renko Charts indicator for MT4 takes the data for price and produces Renko bricks. It offers a quiet forex trading chart compared with a candlestick or bar chart. In turn, Renko charts show clear patterns and precise support and resistance levels. Therefore, forex traders will get the most effective results when employing any forex trading strategy that relies on trends and follow them for so long as the direction is tricky.
This indicator is ideal for advanced and new forex traders. The new forex traders can visualize what is happening in the BULLISH and BEARISH market trends and then place their BUY and SELL orders in line with the movement. Additionally, advanced traders can utilize technical indicators to trade effectively. The indicator is compatible with all intraday timeframes and daily charting, weekly and monthly.
Trading with Renko Charts
The above EURUSD H4 chart shows the Renko Charts Indicator MT4 in motion. The indicator shows the BULLISH bricks in BLUE and BEARISH bricks in RED. New Renko brick appears when the price changes the specified pip value entered in the indicator’s settings. The indicator positions its new Renko brick at 45 degrees, angled either way from the brick before it.
Trends by Renko indicator
Renko charts generally display precise trend direction and support and resistance levels that are often difficult to understand in a candlestick chart or bar chart. Therefore, forex traders typically trade Renko charts by employing any trading strategy that incorporates the levels of resistance and support and the trend direction.
The shift from a BEARISH to a BULLISH market is due to Renko bricks’ change between RED and BLUE.
Buying and Selling
Forex traders can place a BUY trade with a stop loss below the prior low. Most forex traders choose to take advantage of trends and then hold the position until they see a change in market direction. However, the appearance of RED bricks triggers a sell signal and signals an opportunity to trade.
A market prone to ranging colors of Renko bricks is constantly changing and can cause whipsaws. Therefore, Forex traders can use one, two, or three consecutive bricks to verify a BULLISH or BEARISH trend shift and then place the BUY OR SELL order in line with the trend.
Many indicators used on bar or candlestick charts can be different from the Renko charts since they lack time. Therefore, forex traders must try and test the use of a different trading strategy.
Inputs of Renko Charts Indicator MT4
The following table shows the input parameters of the Renko Charts. Feel free to experiment with the settings for better results.
This Renko charts indicator MT4 doesn’t consider the time factor similarly. The HIGH and LOW in the timeframe are not visible. Therefore, it can conceal information required for specific technical forex trading strategies. However, they are also widely used and followed by many forex trend traders. In addition, forex traders can download the indicator at no cost and install them easily.Download indicator