POSSIBLE TRADING IDEAS USING THE RENKO CHART INDICATOR
- Trade Richer
- Feb 12, 2020
- 1 min read
At the most basic level, the Renko chart indicator makes it easier for the trader to view the current state of the market. For instance, a sequence of consecutive down-blocks clearly shows that the market is in a downtrend. A very simple but aggressive trading strategy that attempts to capture the trend is for the trader to take each new block as a directional signal – a new up-block representing a buy signal, and a new down-block representing a sell signal.
It's also possible to come up with more sophisticated strategies combining the Renko chart indicator with other indicators. For instance, a trader could use the Renko chart indicator with the 15 Exponential moving average indicators. In this instance, When the Renko blocks break under the exponential moving average, it is a sell signal. When they break above the exponential moving average, it is a buy signal.
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