How to use renko charts for intraday trading

Renko charts for intraday deal can be a bang-up way to speculate in the light term .
While it is genuine that renko charts are freelancer of time, you can still use renko charts for intraday deal. Whether you are trading the forex markets or stocks or any early market for that matter, renko charts can be easily used for intraday deal .
But before we go promote into the detail, we should get the readers anticipation correct. !
Using renko charts for intraday deal will not make you rich. The information such as price that you see on the regular candlestick charts or banish chart, is the lapp price that you will besides see on the renko chart.

There are besides a bunch of things that you should factor it. Your trade strategy, the base chart time frame, the price moves of the instrument all play a character. In fact your hazard management is besides an important factor to consider hera .
Traders need to come to terms with the above before reading any further. In fact, if Renko charts trading would truly give you an edge in the marketplace, then surely there would quite a few rich traders already out there .
Having mentioned the above, renko bars can surely show the price of the fiscal instrumental role in a different perspective. There are clearly some benefits when you make use of renko charts for intraday trade. But make no mistake. When you trade with renko bricks, you will still need to bring your A-game to the board .
thus without much far bustle, let ’ s get into the details in this measure by step lead to getting started in using renko charts for intraday trade .

1. Find a good renko charting chopine

It goes without saying, but having access to a thoroughly deal chart platform, and one that allows you to chart the renko bricks is significant .
There are many options available for that. We will briefly touch upon a few exercise renko charting platforms that are available for traders .

Tradingview is no doubt one of the best renko charting platforms available. This trade chart platform is mentioned first because of the fact that it can be used as a standalone charting platform .
consequently, careless of whether you are trading with an MT4 or an MT5 trading platform, or even some bespoke trade platform, you can always refer to your renko charts on the Tradingview platform. We have a fully review of how you can use Tradingview to plot renko charts here .
There is a minor price to pay however. But if you are good about day deal, then it is worth the investment .

MT4 Platform

The MT4 trading platform is no doubt one of the most popular and loose trade and charting platforms out there. By default, the MT4 trade platform does not allow for the renko chart as a native chart type .
But the advantage with MT4 is that there are so many indicators and scripts that allow you plot the Renko charts mechanically. Given the fact that you can besides trade immediately from the MT4 charting interface, it makes for a adept choice .
In terms of price, the MT4 renko indicators is priced no more than $ 50 ( If you are paying higher than this for a Renko plotting indicator on MT4, then do let me know. I would be bang-up to take it for a spin ) .

MT5 Platform

The MT5 trading and charting platform is the adjacent version from the MT4 sibling. While this is advanced, the interface allows for better use of indicators. consequently, you will surely find better performance and improvement when using the MT5 trade platform .
But the downside here is that even with MT5, you will not get the native renko charts on the platform. This means that users are compelled to look for a third-party solution that allows you to plot Renko charts on MT5. You can read more about the MT5 Renko indicator here .

NinjaTrader platform

The NinjaTrader platform is widely used among unplayful traders. There is a cost for purchasing the Ninjatrader platform as a standalone. alternatively, you can besides get a loose working version of the Ninjtrader platform when you sign up with a particular agent .
The Ninjtrader platform is widely used among futures traders. It allows for a native renko chart to be plotted, making it reasonably easier for traders to day trade with. however, there are calm some limitations here. For model, the tails for the Renko bar is not displayed .
But fret not !
The trade community comes to your rescue. You can purchase the Renko indicator for Ninjatrader and starting using it straight away .
There are many more trade platforms that allow for Renko chart to be plotted in one way or another. We have a broad list of the renko trade and charting platforms here. nowadays that we have an understand of what trade platforms to begin with, let ’ s act to the adjacent step .

2. Find what you want to trade with Renko

The next obvious doubt is of course finding the legal document that you want for your renko intraday deal. Renko trade does not limit you on the type of instruments that you want to use for day deal. It is basically astir to you to choose whether you want to trade forex, or stocks or futures or commodities. The independent aspect being that you should know the instrumental role you are trading well enough. Below are some points to get you started with that .

Find a liquid enough legal document

What is important to note is that the instrument you want trade is liquid adequate and that the minimum price variation or price movement does not adversely impact your equity. therefore, make certain that you do not end up trading on an expensive fiscal instrument such as a futures compress .

Pay attention to the tick size and value

Depending on how a lot trading das kapital you have, you might besides want to make sure that you choose an musical instrument for day trade which doesn ’ thymine monetary value you an branch and a leg. Ideally it is good to stick to something familiar like a major currentness pair .
A major currency copulate has features of well fluidity and at the lapp time you can have fully control ( by means of the lot size ) to keep a hat on the minimum tick size or the shoot rate for the trade .

Find an instrument with a adequate tendency

Another thing to bear in mind when choosing the instrument for day deal with renko is to ensure that it besides has a good vogue. Commodities normally have great trends. Prices tend to move in a steady vogue for drawn-out periods of time .
But of course, depending on the renko brick size you use, you can besides capture unretentive term intraday trends. The key to finding the arrant market to trade with renko charts is something that you are familiar with. So focus on the short term trend in the market!
You should have a good understand and know the vogue demeanor of the market. And of course, you should know how much profit or loss you can make off that musical instrument .

3. Configuring renko charts

once you have decided on the legal document that you want to trade, be it currency or a stock, the future step is to understand how to configure the renko chart. nowadays this is something that is unique for renko charts. Unlike the traditional bar chart or candlestick charts, with renko charts there is a moment more work to do .

ATR v. Fixed box Renko ?

And here comes the celebrated motion of what corner size to use or whether you should use the renko based on ATR ( average genuine range ) or a fix renko brick. This is quite immanent and depends on factors ranging from how much risk you want to take to the fiscal instrument itself.

Let ’ s take the exemplar of a stock such as Facebook .
We know that this sprout is priced in the hundreds. consequently, it makes sense to have the renko chart to make use of a fixate box size of say anywhere between $ 1 – $ 10 .
The former being more ideal for lower capitalized traders while a $ 10 fixed renko brick will mean that you have deep pockets or all right in being aggressive .
Example of using Facebook stock for Renko chart with different time frames
just to illustrate this bespeak far, the above chart shows the snapshot of Facebook using a fixed size of $ 1 value, but using 15 minutes on one chart and 5 minutes on the early chart as the base graph time frame .

Base time frame for your renko chart

Another point to bear in thinker when using renko charts for day deal is the base chart clock time frame. typically, you are free to use any base chart clock ensnare. if you don ’ deoxythymidine monophosphate know what one ’ megabyte talking about, read this article about the difference between using an M1 chart time frame and others as the basal prison term skeleton chart .
But staying reproducible with the day deal and renko chart, you can set the foundation graph time frame of reference to be anywhere from 5 minutes to 15 minutes. Bear in take care that there will be some risks involved if you use smaller chart time frame .
The most authoritative being that for stocks in general, gap form at the open or sometimes during trade excessively .
consequently be careful about such abnormalities ( and the reason why we mention point # 2 about knowing what instrument you want to trade ) .
To learn more about how to configure renko charts before you day trade, read this article. You can besides watch this video recording I made, but limited to renko charts with tradingview .

4. Get your deal strategy fix to use with renko

The following step is of course to pull out that front-runner trade scheme from your kitty .
now generally speaking, any of your trade strategies or methods that works ( when you are using indicators ) on a candlestick chart will work with renko bars besides .
however, due to the fact that renko chart tend to make practice of close price it is significant that you pay attention to this. This in sour translates to paying attention to the renko brick size itself. Because in some ways, the larger the brick is, the more time it takes for your indicators to be reactive .
Besides the above, there are besides some indicators that allow you to choose other settings besides the obvious .
A good exemplar of this can be the Stochastics oscillator, or even the move average. As you might know, for these indicators, besides the close price you can besides use the high, low, open and close. therefore, when adding such indicators, make sure that you use the close price .
The deal strategy you use renko charts with besides needs to account for this. It is quite easy to get excessively engrossed with trading that you might end up swing trading rather. therefore, make certain that your deal system is super focused .

Be familiar with your index ( south ) and be indisputable to backtest

If you are looking for ideas, you can check out the different renko trade strategies that we cover from fourth dimension to time .
Of run, don ’ deoxythymidine monophosphate fair pick up a price military action based such as support and resistance method for trade. Make certain that careless of what method acting you use, your scheme should be backed by some evidence. This means that you should besides possibly backtest your deal strategy if it comes to that .
just make certain that your trading charts allow you to add indicators onto them. And it goes without saying that you should besides be able to use your indicators on the deal charts. Some trade platforms do not allow for custom indicators ( equitable saying… ) .
You can besides look at other ways to trade such as analyzing good the renko boxes and looking at the price movements .
This can help you to trade strictly based off price military action. You can besides use the regular methods you would use such as a momentum based trade scheme or any other profitable forex deal system that you think and know could work for you .

5. Learn to take profits and exit gracefully with renko trade

This goes without saying and this is something that is not specific to renko charts .
A day trader should know when to call it in, and when to stay in the game. All it takes a couple of winning trades to boost your confidence. And this little confidence boost can push your head into the cloud .
therefore, when day deal with renko charts, you should be very very careful and grounded. Make a naturalistic profit target that you want to reach and a loss threshold that you are will to bear. The moment you hit one of the two, exit the market .
Pat yourself on the back if you did beneficial, or learn from your mistakes if you had losing trades. But one way or another, do not let emotions get the better of you. All it takes is merely that adjacent up brick on the renko graph and you might feel that you are in it already .
But the markets can be erratic and that up brick you merely saw can promptly reverse commission and plot that dreaded loss down box .
consequently, having a tauten grip on your trading psyche is crucial if you want to sidereal day trade successfully using renko charts .

How to use Renko charts to day trade – In conclusion

In termination, this usher should help you to get started in using renko trade for intraday. The steps included steer through the details of what you should prepare for ahead. In fact, I recommend that you should first lambert ook at the renko charts during off market hours .
This will ensure that you are not distracted and at the lapp time it will besides help you to plan for the deal. Yes, I did not cover the unharmed aspect of having a trade plan and a few other things. But this is something that I assume you already have thought approximately.

Day trade can be hazardous and merely because you are using renko charts rather of candlestick charts doesn ’ thyroxine bastardly that you will have a better edge of beating the markets. At the end of the day, the market is right .
The renko bars at best will help you to focus on what matters most, which is the price itself and the price movements that come with the musical instrument you are trading .
good fortune !

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