Renko Chart - High-Low Method
Which chart do you prefer?
Renko charts have virtually no market noise, and time is of no consequence when it comes to plotting bricks. In its purest form, set the brick size in pips and look for new highs and lows. Can it get any easier? However, this approach has lots of room for improvement. Let’s take a look.
New High – New Low Renko Method
The New High-Low method takes care of entries, but what about exits? It’s tempting to hold on to a position for those long runs, as shown after the second New High. However, there is a more stable method which will be described later. For now, it would be enough to exit one brick after the New High or Low, which in this case would be ten pips. See the brick size settings below.
Renko Charts - MT4
The Renko Chart functions as an indicator inside MT4. It is attached to a chart, parameters are set, and then a new window opens, displaying a Renko Chart.
Step 1 – Download the Renko Chart Indicator (Renko Live Chart2) and place it in the appropriate Data Folder.
Step 2 – Add the Renko Live Chart2 Indicator to a 5-minute chart with the desired currency pair. The indicator settings window will appear. First Allow DLL Imports in the Common tab and then open the Inputs Tab where parameters may be changed from their default values.
- Renko Box Size – set in pips, it is the number of pips needed to make a new brick.
- Renko Box Offset – set in pips, may be configured as a positive or negative value and will move the following bricks up or down, respectively.
- Renko Time Frame – may be ignored. It is merely a necessary placeholder for MT4 and has no value.
- Show Wicks – when set to true, will display wicks similar to candlesticks. However, you will notice when a wick is displayed, it will either be only one, either on top or the bottom.
Click Ok and the Renko Chart will appear.
Formation of New Renko Bricks
During a trend continuation, a new brick of the same color is added to the chart when the Renko Box Size value, plus one tick, is met. A reversal in the Renko trend and the formation of a different color brick is formed when price surpasses the Renko Box Size parameter by twice the size plus one tick.