Buckle up as we take you through this exciting experience of revealing a well thought out forex trading strategy that is visually enhancing.
The Renko Color Bars forex trading strategy is simple designed to deliver profits and does add a lot of simplicity to trading.
Chart Setup
MetaTrader4 Indicators: iTrend.ex4 (Input Variable modified; CountBars=30000), RenkoColorBars1.ex4 (Colors Width modified; #0=4, #1=4)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Download
Download the Renko Color Bars Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Take up buy position(s) if the following indicator or chart pattern gets displayed:
- If the silver RenkoColorBars1 custom indicator is displayed on the price chart as seen on Fig. 1.0, price is said to be pushed to the upside i.e. a trigger to buy the currency pair of focus.
- Watch out for the blue vertical lines of the iTrend custom indicator, if it does pop up above the 0.00 level as illustrated on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a signal to buy the asset of interest.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the RenkoColorBars1 custom indicator turns fire brick during a bullish signal, it is an indication of weaning bulls power, hence an exit or take profit is advised.
- Upon the appearance of a red vertical line above the 0.00 level within the iTrend custom indicator window, price is said to be making a reversal away from its ongoing bullish stance, as such traders are advised to exit or take profit straightaway.
Sell Entry Rules
Take up sell positions if the following holds true:
- If the fire brick RenkoColorBars1 custom indicator is displayed on the price chart as shown on Fig. 1.1, price is said to be pushed to the downside i.e. a trigger to sell the currency pair of interest.
- Watch out for the red vertical lines of the iTrend custom indicator, if it does pop up above the 0.00 level as depicted on Fig. 1.1, the sentiment in the market is said to be somewhat bearish i.e. a signal to sell the asset of interest.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the RenkoColorBars1 custom indicator turns fire silver during a bearish trend, it is an indication of halting bears power, hence an exit or take profit is advised.
- Upon the appearance of a blue vertical line above the 0.00 level within the iTrend custom indicator window, price is said to be making a reversal away from its current bearish stance, hence market participants are advised to exit or take profit without delay.
Sell Trade Example
Fig. 1.1
Free Download
Download the Renko Color Bars Forex Trading Strategy
About The Trading Indicators
The iTrend.ex4 custom indicator is a modified Bollinger Bands indicator that can also be used to determine changing volatility in the market.
The RenkoColorBars1 custom indicator is based on the Renko chart that is based on time or volume, as well as price change when trading.
The RenkoColorBars1 disregard time and volume, while considering only price changes.