In this post I will review the Renko Enhanced package which contains a combination of indicators and strategies for the popular MetaTrader 4 (MT4) trading platform.
The Renko Enhanced system can be used to trade Forex and CFDs through an MT4 broker of your choice. I always prefer to use an ECN forex broker as I find that they have some of the lowest spreads and competitive commissions along with superior trade execution speeds at the best possible prices.
With so many brokers to choose from, I have conveniently compiled a list of my best forex brokers to help you quickly and easily choose a broker that meets your needs.
Renko Enhanced Trading System
As the name so rightly eludes to, Renko Enhanced is a complete trading system for manually trading renko charts in MT4. Below is a 5 pip Renko chart (not a time based chart) with two indicators running through the Renko boxes: the Renko Trend indicator, which is the slower rolling line that is positioned most of the time above price action in this shot, and the Renko Signal indicator, which is the line which “hugs” price action. The indicator in the window below price action is called ChopAlert, which was designed to work exclusively with Renko charts.
The Renko Trend indicator is used for trend analysis. According to the developer, if the Renko Trend is Lime Green, it means the trend is up. If the line is Magenta, it means the trend is down.
The Renko Signal indicator is used for entries and exits. The developer states that Lime Green means Buy, Magenta means Sell. The ChopAlert indicator is used strictly as a warning sign that price is entering or exiting an area where tight ranging (and some potentially very bad trades) might be found.
The developer goes on to say that a Green line in Chop Alert means there are no worries about taking trades whereas a Yellow line means proceed with caution because price is at an area where price might end up ranging. A Red line means price is inside a tight range and avoid taking any trades until the lines returns to either Yellow or Green.
This is a basic overview of how the developer uses the Renko Enhances system which you can interpret as you wish. Some traders may use it “by the book” whereas other more experience trades amongst you may take some of the most important principles to implement it with your own trading strategy to further filter signals.
The following is included with the Renko Enhanced Package:
- Renko Enhanced trading method. Renko Enhanced is a set of two indicators (Renko Trend and Renko Signal) which are optimized for trading CFDs.
- Renko Chop Alert indicator.
- Full access to the creators Trading Between the Lines course, which is a course about trading with Support and Resistance lines.
- Forex AutoScaler, the trade management EA.
- One month’s full access to the creators live Trading Room.
- PDF version of the creators Forex Power Trading Journal.
- Creators personal Checklist to use as a reminder for how to trade this method.
Renko Enhanced Summary
The Renko Enhanced system is very flexible and can be used on any currency pair or other trading instrument. It can also be used on any time frame. I prefer major currency pairs such as the EURUSD and GBPUSD due to their liquidity and spreads. I also prefer long term chart time frames as I find they can filter out lots of noise from shorter time frames and mean less staring at the charts.
This particular forex system is a generous package and I feel it would be more suited to the intermediate to advanced traders amongst you. It does require some willingness to learn and practice the principles the developer is trying to get across. There are no refunds but full support is offered.