Renko Trading Strategy #2
For this Renko trading strategy, we only need to use the indicator. We can use a 14- period or a 20-period indicator. So, use the same period as the ATR 14 or 20 Renko brick size.
After we spot the momentum divergence an entry signal is triggered once we get a reversal. On the Renko chart, a trend reversal is set in motion once the brick changes color. In this case, when we spot a divergence, enter a short position after the brick turns red.
For , wait for the brick to turn green.
We exit our profitable trade once another reversal pattern is formed in the opposite direction of our trade. As a method to protect our account balance and not lose too much, you can place your SL above and below the swing point developed after your entry.
A lot of the noise inherent in regular time-based charts are eradicated. So, if you trade with Renko charts, spotting divergence and trend reversals are a lot easier. The is the best indicator to use with Renko.
Read the previous Renko Chart post to learn about Renko chart system.