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Renko Chart - How to Trade Using Renko Charts
Download Renko chart indicator for MT4 or MetaTrader platform: Click Here
Do you really have to consider the time or volume in your trades or you can also trade according to the price changes only? This question is the foundation of the Renko charts. Renko charts are invented by the Japanese. In this chart, time and volume has no role. Renko candles look like small bricks or boxes. They have no upper or lower shadows. We can change the box size in the Renko charts.
The smaller the size, the higher number of boxes and so more details of the price changes.This is the Renko charts of Euro-USD while the box size is set to 1:
And this is the same chart while the box size is set to 0.5 which means smaller boxes and so more details of the price changes:
Lets see the above chart with a higher magnification to see more details:
The above chart covers about 2 years from Sep 2004 to Sep 2006. As you see there is a limited number of trading opportunities in this chart. The technical analysis rules are the same in the Renko charts and you can enter a trade after a support, resistance or consolidation breakout:
Lets check a smaller box size and see if we can find more trading opportunities or not.
The box size in the below Renko chart is set to 0.1. As you see your can easily find good trading opportunities using the technical analysis rules:
Now lets compare the above chart with a candlestick chart. The below chart is the candlestick chart that covers the same period of time as the above chart. As you see the short trade could be easily distinguishable in the candlestick chart but it was a little hard to decide for a long position after that. Whereas the above Renko chart shows the long opportunity very clearly.
What does that mean? Does it mean that you can find more trades in the Renko chart?
I can not see any clear inverted head and shoulders in the above candlestick chart whereas it could be seen sharply in the Renko chart.
Another period of time with the Renko chart:
The same period of time with the candlestick chart:
So if you are a swing trader and you work with the big time frames like the daily chart, you’d better to have an eye on the Renko chart too. It seems it is a big help to confirm your technical analysis results and predictions.
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Hi Forexoma,
You’re back! Fantastic - where have you been - we’ve missed you.
Will you start your daily analysis again - I hope so
Best regards
Paul
Hi Forexoma
I got into you site by search of Renko ..
Here you have done good job in analysing the forex, for me it is tough to enter there.
Appriciate your work.
Thanks to your input and I had read about the Renko Chart , but I am not finding Renko free charts , can you refer me where any site where they offer us to try out this chart for index and forex with other indicators like , RSI , STO…
thank you in advnace
Satish K
hi Forexoma,
i have a question want to ask you about renko , how can u use multiple timeframe with renko.
And this is my system i usuallly try with renko 1h 20 pips per box, at least 2 red and only one green then buy, at least 2 green and only one red then sell
sir
iam stock market trader india
how to input value boxsize please repply
thanks
muruga
Hi Forexoma,
I have recently found this website. Great training material. I was wondering if you can send be a link to download renko indicator for meta trader platform.
Great job with the forex training stuff.
Thanks
don
Hi,
how can I use the renko ‘version’ of the various ‘end-of-day’ charts/instruments that you list on your site?
Thanks.
What a great site, I have just discovered it today and am amazed at the information you provide. Thank you so much.
Like the other posters here, I would love to know how to get renko onto my metatrader charts?
Thanks again.
Thank you for excellent information. I’ve just printed off many of the articles and I will review them and then give some more comments. Basically just wanted to thank you for being so generous in having this information available to me. I am a new trader and this basic information will help speed up my learning time.
Hi, thanks for this. But could you please give a bit more details, such as what time frames (higher or lower) would be most suitable? And what would be the best setting? The one you provided for download only allow changes to ‘Porog’, and it’s not like the one you mentioned as 1 or 1.5 or 0.5. The default is 40 and on 4H TF it doesn’t seem to suit actual price actions. I tried to change it to 15, 20, 25, 30, 35 with mixed results, and it’s different for different pairs too. A bit more advice would be very helpful indeed.
In addition, the downloadable indicator is only its .ex4 file. Would it be possible for you to provide its .mq4 format? With that, it is easier to set the changes in coding without having to go through the customising window every time.
Many thanks!
Dear Sir,
I downloaded your Renko indicator.
It does not take decimal point for box size.
You know, renco looks good on your charts, but not in MT4. In MT4 it’s just don’t understandable. You give for us good lessons, but this indicator for MT4- useless.
Hello Forexoma, thank you for your assistance to all forex professionals. Please I want you to please tell me the benefits of your live program.
hi,
do you recommend i use 100 pips as box size for the major currency pairs?
what box size would you recommend if i plot renko on cash mkts like djia and s&p500 or futures mkts like cbt’s sb, sbm and sbo?
thank you and look forward to hear your comments
matt
Hi Matt, I think 100 is too much. You need to backtest different settings for different currency pairs and commodities. A setting that works for one, may not work for the other.
SIR I AM A INTRADAY TRADER SINCE LAST 4 YEARS I AM DOING SHARE TRADING I HAVE GONE THROUGH YOUR ALL DISCRIPTION OF SHARE TRADING I HAVE NOT GOT SUCH USEFUL AND DETAILED INFORMATION ABOUT SHARE TRADING , SIR I WANT TO ASK U IF I WANT TO COVER MY LOSSES HOW TO TRADE I WANT SOME GUIDELINES FROM YOU SIR AND WHAT WILL BE THE MY INVESTMENT .
I HAVE LOST AROUND 25 LACS OF MY PORTFOLIO AND CASH
THANKINK IN ANTICIPATION
guys, to some of you asking about what timeframe - did you not catch the overall concept of Renko? it does NOT factor TIME into the equation. it even says so right in the first few lines!!
n this chart, time and volume has no role.
i think the most basic implementation of a Renko chart (using sticks and stones) is a trailing stop, since that’s basically what it amounts to. doesn’t matter if the price takes 5 seconds or 5 minutes to pull back, in the end it DID pull back by an amount and your profit / loss is based ONLY on how much you buy and sell at. how long you hold it is irrelevant to your bottom line - you don’t get a bonus for holding it for X days instead of X minutes.
How can I import Renko indicator into Oanda Metatrader 4, it seems to be different than other versions of MT4. I input file into the
experts/indicator folder, but when I restart MT4, Indicators don’t show up in the navigator under indicators.
Hi James,
Probably you have not placed the files in a right folder. This can be the only reason.
I hope those above who had difficulty getting up and running with renko have found a way by this time. Forexoma i have been unable so far to understand what you mean by “1″ in the first chart picture. On the program i have, since i have a 5 digit broker, in the box where inputs are set for box sizes, “1″ would mean 1 pip. If I want 10 pip boxes I have to input 100, 20 pip boxes, 200 and so on. But the “1″ you write is the setting for that first chart….. please explain what it represents. 100 pip boxes? There is so little price activity - the essence of the entire year’s activity is reduced to a very simple picture, so i am assuming the “1″ may mean 100 pip? I cannot mention this without running into trouble with promoting, but if I am allowed to, let me know. I just recently learned about renko by finding a very inexpensive package with superior, very simple and easy to follow training videos. if I am allowed to post, I will post the link. It might help the people who come here wanting to begin and running into trouble on their own.
Gentlemen,
I downloaded the Renko file. Whereto do I paste the file in MT4?
templates, libraries, indicator?
I appreciate your help.
Hi Henri,
In the experts/indicators folder.
hi…
how to setup renko chart ?