Renko charts have gained popularity among traders looking for a simplified yet effective way to analyze price movements. While our previous article covered the basics of Renko trading strategies, this guide delves deeper into advanced techniques to refine your approach and maximize your profits.
What Are Renko Charts and Why Do They Matter?
Before diving into advanced strategies, let’s briefly revisit what Renko charts are. Unlike traditional candlestick charts, Renko charts filter out minor price fluctuations, focusing only on significant price movements. This makes them an excellent tool for identifying trends, reducing market noise, and simplifying trade decisions.
If you’re unfamiliar with Renko charts, check out our previous article on Renko trading strategy, where we covered the fundamentals.
How to Trade Renko Charts Effectively
1. Combining Renko with Moving Averages
One of the most effective ways to trade Renko charts is by incorporating moving averages. A simple method involves using the 50-period moving average to determine the trend direction:
- Uptrend: Price stays above the 50 MA → Look for buying opportunities.
- Downtrend: Price remains below the 50 MA → Look for selling opportunities.
2. Support and Resistance with Renko Charts
Another powerful technique is identifying support and resistance levels on Renko charts. Since Renko charts filter out market noise, key price levels become more apparent.
How to Trade Using Renko Charts and Support/Resistance:
- Buy when the price breaks above a strong resistance level.
- Sell when the price falls below a strong support level.
This strategy enhances accuracy, reducing false breakouts that often mislead traders using standard candlestick charts.
Free Renko Charts: Where to Find Them?
If you’re looking for free Renko charts, several platforms provide them without any cost. Some popular options include:
- TradingView – Offers highly customizable free Renko charts with indicators.
- MetaTrader 4/5 (MT4/MT5) – You can install plugins for Renko chart free.
- Stock Market Websites – Some financial platforms provide Renko charts free with basic tools.
For a complete guide on how to trade Renko charts, refer to our first article on Renko trading strategy.
How to Trade with Renko Charts Using Price Action
Price action trading with Renko charts is another approach that minimizes reliance on indicators. Instead of using moving averages or oscillators, traders focus on Renko brick patterns.
Key Price Action Patterns in Renko Charts:
- Breakout Patterns – When a series of Renko bricks consistently break above or below key levels.
- Trend Continuation – If a strong trend forms without reversal bricks, the trend is likely to continue.
By using how to trade with Renko charts as a price action tool, traders can develop a strategy that works in any market condition.
Conclusion: Mastering Renko for Long-Term Success
Renko charts offer traders a structured, noise-free way to analyze markets. Whether you use indicators like moving averages or rely on pure price action, mastering how to trade using Renko charts can significantly improve your decision-making.
To get started, explore free Renko charts and practice different strategies. Also, don’t forget to read our previous article for a step-by-step guide on the basics of Renko trading!
By combining the fundamental concepts from our previous guide with these advanced Renko trading techniques, you’ll be well-equipped to trade with confidence.
