ADVANTAGES AND DISADVANTAGES OF USING THE RENKO CHART INDICATOR
- Trade Richer
- Feb 12, 2020
- 1 min read
Using the Renko Chart Indicator helps to eliminate market noise. Since each brick represents a pre-determined size of price movement, It ends up giving the trader a very clean chart.
The Renko Chart Indicator is very good at highlighting trends and support/resistance levels in the market. This is because a clean chart environment is created by the Renko chart indicator. Also, technical analysis using a Renko chart indicator is a lot simpler and is especially more efficient for beginner traders. Also, retracements and trend continuation patterns are easier spotted and make it easier for traders to identify and focus on the larger, more important trends.
The bricks created by the Renko chart indicator do not give the trader the same information that a candlestick can (i.e. open, high, low, close). So although price patterns do exist in the Renko charts, individual bricks do not give much information on market participant behavior.
Trading with the Renko chart indicator can be a great way for Traders who want to improve some aspects of their trading such as patience or being impulsive while trading due to the way that the Renko chart indicator plots bricks. And more significantly, using the Renko chart indicator also helps in keeping the winners running and cutting the losing trades quickly.
Comments