I want to present you a real live Renko chart forex strategy that can be used on any currency pair and time frame.
The trading rules are really simple and straightforward.
The strategy consists of 2 special trading indicators, one for trend direction (Renko) and one to enter trades in the direction of the trend.
It’s suitable for scalping, day trading, swing trading and long term forex trading. Let’s get started with this:
Chart Setup
Used indicators: ScalpCycle.ex4, RenkoColorBars1.ex4
Preferred time frame(s): any
Trading sessions: scalping and day trading (London & New York), swing trading and long term (24/7 trading)
Currency pairs: any
Download
Download The Live Renko Charts Forex Strategy.
Example: GBP/USD M15 Chart
The figure above is an example of the Renko system in action on the 15 minute British Pound/US Dollar chart.
It shows our proposed buy and sell entry points along with our proposed stop-loss levels.
4 Easy to spot trading setups have been generated in the Renko up- and down market trend.
Learn below the buy and sell conditions of this strategy.
Trading Rules
Buy conditions:
- The Renko indicator (RenkoColorBars1.ex4) draws gray candlesticks (market goes up)
- The scalping cycle indicator ScalpCycle.ex4 changes its arrow color from red to gray.
==> Open buy trade. The stop-loss is placed slightly below support.
Take profit method: Exit the buy trade for a profit at risk to reward ratio 1 or better. Alternatively, use a trailing stop to lock in profits and let the trade run as far as possible (until stopped out).
Sell conditions:
- The Renko indicator (RenkoColorBars1.ex4) draws red candlesticks (market goes down)
- The scalping cycle indicator ScalpCycle.ex4 changes its arrow color from gray to red.
==> Open short trade. The stop-loss is placed slightly above resistance (see figure).
Take profit method: Exit the short trade for a profit at risk to reward ratio 1 or better. Alternatively, use a trailing stop to lock in profits and let the trade run as far as possible (until stopped out).