Renko Boxes Chart Indicator
Platform: MT4 Type: Market Levels Last update: September 23, 2024The Renko Boxes Chart Indicator for MT4 displays Renko Boxes directly on trading chart. It makes an analysis of the price movement and then draws boxes according to that movement. Trading with such Renko Boxes Chart helps in getting a clear picture of the market and reducing unwanted market noise.
How to apply renko boxes in trading?
As you can see, the Renko Boxes Chart Indicator draws boxes with different thicknesses. You should avoid trading wide boxes, as it indicates sideways movement. The best signals are provided when a very thin box occurs, after that sideways movement. Take a look at the detailed instructions below.
Buy Signal
Follow these steps for a long trade:
- Thin blue box is placed on a chart
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit trade after reaching Risk:Reward ratio of 1:1 or more, or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- Thin red box is placed on a chart
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit or exit trade after reaching Risk:Reward ratio of 1:1 or more, or use your own method of trade exit
