The Renko Charts Metatrader 4 forex indicator is a technical indicator that converts a traditional chart into a Renko chart.
The Renko chart are in the form of bricks without wicks, where the size of the brick is specified within the inputs parameter.
The colors of the bricks found on the Renko chart are blue and red, where the former typifies bullish market sentiments, the latter is used to describe bearish signals.
A new Renko chart box comes up only when a special level of price change takes place.
When the brick size is set to a smaller value, new bricks emerge faster, while setting the brick size to higher values results in needing larger price change before new brick are being formed.
The EUR/USD H1 chart below displays the Renko Charts Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the bricks of the Renko Charts Metatrader 4 forex indicator changes its color to blue.
Sell Signal: Go short when the bricks of the Renko Charts Metatrader 4 forex indicator changes its color to red.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the brick color of the Renko Charts indicator reverts to red.
Exit sell trade: Close all sell orders if while a bearish trend is running, the brick color of the Renko Charts indicator changes to blue.
Tips: The Renko Charts indicator is usually used to eliminate noise present in price movement, considering that a new Renko Charts brick only gets formed when a significant amount of price movement gets triggered.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (Porog, ColorOfFon, Color1, Color2), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the renko-charts.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)