Smart Renko Chart
Renko chart is a popular tool to trade with the price action in Forex and Stock market. Renko Chart is the visualization technique, which does not use the fixed time interval but it uses the fixed price height. It is useful tool to recognize price action, price pattern and chart pattern from Forex and Stock chart. We created a powerful tool called Smart Renko for Price Action Trader. Here we will explain how to use Smart Renko Chart in brief. Smart Renko is a hybrid tool between renko chart and candlestick chart. Smart Renko provides the spread view of the renko bricks on the candle stick chart and then it also keeps the normal renko chart on the bottom. The advantage of Smart Renko is that you can use the analysis of renko chart together with the analysis of candlestick chart at the same time. You can get the best out of the both world.
The important point before using any Renko chart is about the brick height. This also appies to the Smart Renko Chart too. Just like normal renko chart, Smart Renko chart need to decide the good number for brick height. From my experience, you can the brick height near the 1 standard deviation. However, you must use the brick height in the round number because standard deviation might come in decimal numbers. So be sure to round up those decimal numbers into good integer numbers.
Another consideration is that your brick height should be in the factor of 10, 100 or 1000 pips for your trading. That means that using 5, 10, 20, 25, 50, 100, or 1000 brick height is the most effective price height for your trading. From my experience, these factored number can serve better for your brick height. If you do not choose sensible brick height, then you might not able to see anything on your charts. So be sure to choose the sensible brick height.
Finally do not forget that in Smart Renko, your analysis in Renko chart can be transferred to Main chart by double clicking over the Trend lines.
If you want to dig deeper, please google on renko chart. You will see a lot of articles about Renko charts and how to trade with them.
In addition, some feature of Smart Renko is built inside the Price Breakout Pattern Scanner. Hence, you can use the automated Pattern Scanner together with Smart Renko Chart inside the Price Breakout Pattern Scanner. Price Breakout Pattener cotains two tools in one techncial indicator. In addition, Price Breakout Pattern Scanner provides the 52 Japanese candlestick patterns to assit your trading decision. Here are the links for the Price Breakout Pattern Scanner.
YouTube Video about Smart Renko Chart
Image and article originally from www.mql5.com. Read the original article here.