1) Renko Chart
2) 20 Period Moving average - Simple or Expo no matter.
3) with standard settings.
Now let's see when we have to take Long or Short entry:
Long Entry Rule:
Renko Chart create a Blue Candle Which is crossing above 20 period Moving Average then take Long on closing of candle. - shape points upwards and crossing up for Long entry. Exit rule is Simple, as Renko chart form first Red candle exit trade on closing of candle.
Short Entry Rule:
Renko Chart create a Red Candle Which is crossing Below 20 period Moving Average then take Short on closing of candle. - shape points Downside and crossing down for Short entry. Exit rule is Simple, as Renko chart form first Blue candle exit trade on closing of candle.
If you use Traditional, you can adjust the Box Size value to reflect the number of pips/points you want each bar to be (pips is a term of value used in the Forex market). For example: if you want each Renko bar to be 20 pips/points, then you would insert the following value in the Box Size space: 0.002. Likewise, if you want it to be 50 pips/points, you would put it as 0.005; 100 pips/points would be 0.010. You could even go lower than 20 if you so desire. 15 pips/points would be 0.0015
If you are using a pro+ account, however, it's not necessary to do this as you could produce the same or similar results using the ATR setting on a lower time frame, such as the 1HR chart. Of course, the number of pips/points you desire to use would determine which time frame you would use as the Renko bars appear differently on each time frame. You would have to play around with it to see which works best for you. The 1HR chart seems to work well using the ATR setting.
But if you want to be more precise, using the traditional setting and adjusting the Box size is the way to go.
To change Renko settings, click on any Renko bar and then right click on your mouse. You will see the settings option.
I hope that helps. :)
I don’t get it, tbh...
Btw, this is a good technique during an uptrend, but during a downtrend, if you buy every time a green block appears and sell when the red appears, you can go broke, because you will buy really high and sell really low. I was really interested in Renko but I’ll leave it just for comparing with Heikin Ashi and Japanese candles charts.
Thanks anyways! ;)
On an hour time frame, you could get 5 blocks shows as pending, and they will not trigger your alert until, that hour is up. Bottom line is that to get even close to real Renko you must put your chart in to one minute time frame.
And even then a lot can happen in one minute, and your alerts will not trigger until the minute is up even though the price has gone way beyond your trigger point.