Simple Renko Arrows Forex Trading Strategy
The currency market in most cases offers us little time to think through our decisions, considering the speed at which prices are being filled.
Traders remain on the lookout for opportunities they can capitalize on and make profits.
This is attainable only when you have a reliable trading strategy, and we have developed one you can obviously try out.
Let’s take a look at the Simple Renko Arrows forex trading strategy to see how it really pans out on the activity chart and how you can make money of it.
MetaTrader4 Indicators: tipu_renko.ex4 (Input Variable Modified; Renko Mark=Arrows), fouraverage-indicator.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chat pattern gets displayed:
- If the lime histograms of the fouraverage-indicator.ex4 gets aligned above the 0.00 level within its indicator window, while a corresponding lime upward pointing arrow also forms below price bars (refer to Fig. 1.0), a buy signal is said to be in place.
- If the dodger blue upward pointing arrow of the tipu_renko.ex4 custom indicator forms on the activity chart as shown on Fig. 1.0, price is said to be pushed somewhat higher i.e. a signal to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss 3 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a buy signal is running, the fouraverage-indicator.ex4 histogram turns red and gets positioned below the 0.00 level, while a corresponding red downward pointing arrow also forms above the candlesticks, an exit or take profit is recommended in this case.
- If the tomato downward pointing arrow of the tipu_renko.ex4 custom indicator is seen on the activity chart as depicted on Fig. 1.0, it is a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the red histograms of the fouraverage-indicator.ex4 gets aligned below the 0.00 level within its indicator window, while a corresponding red downward pointing arrow also aligns above price bars as shown on Fig. 1.1, a sell signal is said to be in place.
- If the tomato downward pointing arrow of the tipu_renko.ex4 custom indicator forms on the activity chart as depicted on Fig. 1.1, price is said to be pressured lower i.e. a trigger to sell the designated forex pair.
Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If during a sell signal the fouraverage-indicator.ex4 histogram readjusts to lime above the 0.00 level, while a corresponding lime upward pointing arrow take shape below price bars, an exit or take profit is duly advised.
- If the dodger blue upward pointing arrow of the tipu_renko.ex4 custom indicator gets aligned below the candlesticks as illustrated on Fig. 1.1, it is a trigger to exit or take profit at without delay.
Sell Trade Example
About The Trading Indicators
The fouraverage-indicator.ex4 is a brand new forward-looking trend indicator designed by ExcStrategy team and it uses adaptive four-level averaging.
It is a quite powerful and efficient adaptive tool designed to fit into changing market conditions.
The tipu_renko.ex4 custom indicator plots Renko charts on the activity chart in the form of arrows or bricks (a feature that can be tweaked in its settings).