How To Setup Renko Charts on MT4
Originally developed in Japan, Renko charts have gained popularity all over the world and can now be set up on the MT4 (Metatrader 4) platform.
Named after the Japanese word for bricks, "renga", these charts can be considered pure price action charts since 'price' is the only dimension that's displayed on it.
The main thing you need to know about Renko charts is that they are only updated when the market price moves by a certain number of pips. Thus, when the market price is moving in a tight range, a Renko chart will not print new bricks.
Depending on your trading method, this can be a good or bad thing.
If you're not concerned with small price fluctuations, this is a good thing, because a Renko chart will filter them out.
However, if you need to watch the market price on a tick-by-tick basis, then Renko charts might not be appropriate for you.
For Renko traders, price is the only dimension that matters. Unlike most other traders, Time is not a consideration for them.
This is what a typical Renko chart looks like, compared to a regular price chart:
How To Set Up Renko Charts on MT4
Since there is no built-in capability of the MT4 platform to display Renko charts, you'll have to set it up as an indicator. That's the easiest and fastest way to get Renko charts on your MT4 platform.
Step 1: Download the indicator file
Download this Renko indicator file:
- Renko 2 by Collector
Step 2: Install the indicator
Follow these instructions to install the indicator: How to Install Indicators on MT4
And that's it! Congratulations, you now have Renko charts MT4!
Renko chart trading strategies
Here are a few Renko trading strategies for you to consider:
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