Making Money in Forex is Easy if You Know How. The System is based on a Renko Chart that predicts the price micro trends with amazing probability! In our opinion this trading tool works better than all other system that we’ve tried.
- Renko ea
- Slope direction line
- Traditional macd
- Template as above
Before I explain this system , I want you all to know that I developed it in a couple of hours while ‘playing around’ , I noticed through the comments on ForexWOT that some people have trouble understanding how to load renko charts so can’t load the templates from the recent upload – “renko charts with solar wind joy”.
Part of the reason I developed this system like I did is that a lot of people say that if you have a direction change bar that there is over 70% that the next bar will be a continuation, I am assuming this might be the case for a larger pip bar like the 10 pip bar where I have my charts set to 5 pips.
- Place the renko ea file into experts
- Place the Slope Direction line and the traditional macd into experts/indicators
- Place the template into templates.
- Open a M1 chart for the pair you are going to trade, drag the renko ea from navigator/experts onto the chart
Renko box size is the amount of pips per bar , default is 10 , I have mine set to 5.
Renko time frame is just a reference for the offline chart you will be using.
Change show wicks to false.
This chart is not used to trade with , minimize it and go to file/ open offline.
The renko chart AUDJPY, I have on the M3 instead of the M2 as I have tick charts using M2 already. You can now change the zoom in out, change from bars to candles and load any indicators or templates to this chart. I have provided a template to use for the system I’m about to explain.
The first rule is to look for the reversal bars as I wrote about above, ie when a red bar closes after the previous bar was green or a green bar closes after a red bar.
I have marked some reversal arrows on the following chart, these points are where you could have taken a trade for this system so they are the ones I’ve marked.
The blue area is the entry point – as close as you can get to the close. As you can see there are 10 possible trades marked , by my rules as I’ll explain further , 5 winners and 4 losses and the last one in progress, as I write it closed at a loss.
As you can see it’s not the holy grail and doesn’t catch the turning points in the market but it will keep you out of the majority of small corrections and help trade an already established trend.
2nd rule is check the directional slope line is blue after a bar close for longs and yellow for shorts, it doesn’t repaint but can change colour while the current bar is developing so be careful, it has to already have a closed bar on the colour you want to confirm the direction.
The only other indicator I have is the MACD , the rule is very simple , for LONG / BUY entries , both lines have to be heading upwards with the green above the red and for SHORT / SELL, both lines angled down with the green below the red.
Now the reason I listed some as winners and some as losers even though the trade went in your direction for one or more bars is because I’m looking at a reward for risk of 2 to 1, each trade has a 10 pip stop for a 20 pip target.
You can try different risk to reward ratios, trailing stops, I prefer the set and forget style so this is my idea for how to trade this method.
This is just something I made up, it’s not a commercial product, it hasn’t been tested properly, I don’t know how to run an offline chart through the strategy tester or even if it can be done?
I haven’t been trading this system as yet although I think it has potential to make good money. I think the only way I would is if someone develops or finds an alert popup, sound and email to the renko ea as is done with other indicators to alert me each time a bar closes.
Not knowing if the next bar will close in 10 seconds or 3hrs is something I don’t know if I’m up for, would take a lot of patience. If I could load 10 or even 20 charts and have a pop-up with sound alert to quickly check the pair I’m alerted to I would definitely trade this system.
As it is trade it at your own risk I take no responsibility for any losses you may have.