Renko Indicator MT4: Forex Trading Strategies & Tips

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What is Renko Indicator⁣ in MT4?

The ⁢Renko⁢ indicator ‍in MT4 (MetaTrader 4) is a technical analysis tool used to identify strong, ⁣successful price⁢ movements.‌ Renko⁤ charts are created‌ by drawing specific boxes on a⁢ chart ⁢which represent set amounts of price movement⁤ and help identify buying or selling opportunities. ‌This indicator ‍is⁣ typically used in ⁤combination with larger moving averages as‍ a way to spot substantial price movements.

How ​to Use the ‌Renko Indicator

Using the ‍Renko indicator in ⁣MT4 is⁤ relatively straightforward. The first step ⁤is to decide on the box size. This is the⁣ amount of price movement which will be needed before a⁤ new ⁤box is⁣ drawn. The box setting is set by the user,​ and it is important to make sure the ​box size⁤ is comfortable for ​the⁣ user’s trading style. ​Once the box ‌size is set, the indicator attracts ‌price drops ⁣or ⁣advances above or below the marked boxes, producing a blinking ⁣dot. That’s the signal when‌ a⁣ trader can buy or sell with confidence.

Renko ‍Trading ​Strategy

One popular trading ⁤strategy using ‌the Renko‍ indicator in ​MT4 is to combine larger moving averages ‍with Renko. This strategy ⁤is quite simple, ‌you basically ⁣want price to ⁢be ⁤above/below all averages to enter a trade in the respective direction. For example, if the price is⁣ above the 20-day moving average and ⁢below the 40-day ‍moving average then it is a good⁢ time for you to enter a long position. Taking positions this way also greatly reduces‍ risk compared to buying when ⁢the ‍price is only above or below ⁢one average.


Using the Renko indicator in MT4 can be a valuable tool to any trader’s‍ technical analysis arsenal. ‍Its‌ ability ⁣to identify⁤ strong trends and⁣ help traders ⁤place successful orders makes it‍ a great tool for anyone‌ looking to make a profit in‌ the stock market. Combined with ⁢larger moving averages it can ⁢be even more⁤ powerful.‍ Most important is knowing ​how and when‌ to adjust the box size to fit your individual trading strategy. Hopefully‌ this article ⁢has provided an introduction to the Renko indicator in MT4 and given an idea of how ⁢to use ​it ​successfully.

Introduction‍ to the⁣ Renko Indicator MT4 Forex

The Renko​ indicator has‍ become popular over the past few years as ‍an effective tool for trading on MT4⁤ forex. ‍Designed to ‍identify substantial price movements, the‍ Renko indicator is⁣ perfect for traders that prefer to use⁤ price action analysis in their trading strategies. This article will ⁣explain how the Renko indicator works,‌ and provide an example Renko trading strategy.

How Does the ⁣Renko‍ Indicator MT4 Forex ‌Work?

The Renko bar indicator draws Renko ‍blocks ⁢on a normal⁢ MT4 time-based ⁢chart. These blocks are either drawn as continuous or as separate elements whenever a certain price movement has‍ been completed. This ⁣means that​ the Renko bars will⁤ only ‍form when ⁤there has been ⁢a certain amount of ‌price change. Additionally, the⁤ Renko indicator can also work with linear or logarithmic scaling, which makes it suitable for both short-term and⁤ long-term trend analysis.

MT4 Adaptive Renko Indicator -⁢ Using the ATR Average True⁤ Range

The technical indicator ⁣MT4 Adaptive⁣ Renko also provides traders⁢ with insight⁤ into price movements, as it traces⁢ a trend channel using ⁣a calculation algorithm based on the ⁢logic of Renko bricks and ‍the ATR Average True ⁣Range. ​By combining Renko bricks and the⁣ ATR Average True Range⁤ into the calculations,‌ the Adaptive Renko⁢ indicator is capable ​of providing an accurate representation of price movements. It also includes the ability⁤ to adjust⁤ the number⁤ of Renko ‍blocks. This​ makes ‌it possible to customize⁤ the Renko chart’s parameters, ​and ⁤make it⁢ suited to ‍various trading styles.

Renko Trading Strategy

By‌ entering ⁢long positions ​whenever price moves above the Renko‌ indicator line, and entering short ⁢positions whenever price moves​ below the Renko indicator line, ‍traders​ can apply a Renko trading strategy. However, ⁤traders will have to‍ be careful when ‌trading using Renko bars,⁤ as they can ‌provide false signals. To⁢ improve the accuracy of the trading ⁣strategy, traders can use​ additional indicators, such as ⁢the RSI⁤ (Relative Strength ‌Indicator)‍ and the ATR, to‍ ensure that‍ their trade signals are not false.

It is also ‌important to make‌ sure that you are trading on the correct time frames. While trading on a ⁣smaller ‍timescale‍ can ⁣result in quick profits, it can​ also ⁣increase the⁣ chances of losses due to false signals. By trading on a longer timescale,⁣ traders can reduce⁢ their risk ⁢of losses.


The Renko⁣ indicator ‍is an excellent tool for‍ traders that prefer to​ use price action analysis in their trading strategies. By combining additional indicators, such⁣ as the RSI and the‌ ATR, traders can use a Renko trading strategy with improved ⁣accuracy. In addition, trading on a ‌longer⁢ timescale ​can​ help reduce the risk of losses. With⁣ this knowledge, traders can use ​the Renko indicator to spot substantial price movements and take advantage of⁤ them.