just check if you are still on the right side of the trend. Renko Charts and Divergences Now lets see how Renko charts make it easier to observe divergences. Important: I still prefer candlestick charts, since they are the best type of charts for price action traders. I believe there are a couple reasons for this: Knowing how to trade with Renko charts is not as popular and not as well known as normal candlesticks. Important: This by no means is meant to indicate that Renko is better than Candlesticks. A wick on a Renko chart means that price attempted to move the opposite direction of the Renko Brick but failed. Every green brick means price moved up 10 pips and every red brick means price moved down 10 pips. Renko bricks (the name for what they look like) only form when the price has moved to a set number. Lets revert back to the daily candlestick chart of the eurjpy pair, notice that we have not changed these blue support and resistance lines. Trading with Renko charts is a much more clear example of these areas of support and resistance. Happy Trading, Colibri Trader.s.
Check out the full Candlestick Charts Article for better understanding of candlesticks (Free E-Book included) Check out another less known type of charts- Heiken Ashi and learn more about how traders use it For anything else trading related: Related. Executing trades with Renko charts ensures that you stay with the trend and you avoid the headaches and stresses that looking at regular charts can give you! Notice how much these candlesticks are respecting the Fibonnaci levels from the Renko chart? Lets look at the eurjpy pair. Lets look at the eurusd pair for this example. Try and keep track of how long it took you spot these divergences if you were to trade using candlestick charts. If you are a candlestick trader and want some confirmation or cleaner identification of levels, trends and divergences, Renko can help confirm your candlestick analysis or even improve your candlestick analysis. Are there areas on the movement of this chart where you would taken profit early? I truly believe that Renko is something that can help traders who hate looking at their screens all day, but cant stand the temptation to do so and then begin to become their own worst enemy because of one or two rogue candlesticks. Renko Bricks and Its Wicks There is something else about Renko charts, specificly the Bricks, that even some users of Renko neglect to utilize and that is the wicks on Renko bricks.
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