Do Renko charts really help improve trading?
by Ranga C
There is no doubt that when it comes to trading with Renko charts, enthusiastic traders using Renko charts often have a discreet advantage over others when it comes to trading with an edge. The fact that Renko charts are clean and free of noise makes it one of the most preferred charts to use especially in gauging trends in the markets and at times could rank as being probably better than using the traditional candlestick charts or bar charts or even line charts for that matter.
Although Renko traders have the distinctive advantage over the rest, they are not a special breed as losses are also a common aspect despite trading with Renko charts.
For most traders, Renko charts seem to come with a certain element of awesomeness or even intrigue. However, once you are familiar with Renko charts, it doesn't take too long to realize that Renko charts are not the holy grail of trading.
Being a zero sum game, losses are common even when trading with Renko charts. However, the typical Renko trader is well positioned in limiting their losses. If you have spent enough time looking at the Renko charts you would realize this to be true. The fact that trends and price action are easily visible makes it easier for a trader to be more confident in their trades, while ensuring that their losing trades are cut off immediately, while keeping the winning trades running until the market stops them out.
In this aspect, Renko charts offers traders the edge that they need. In other words, confidence in the markets is what one gains when trading with Renko bricks.
But before a trader develops this confidence, there has definitely been an amount of time where the Renko trader would have spent months if not years trying to perfect their trading system. Perfection not in terms of winning 100% of the time, but perfection in terms of being reliable by having strong money management rules.
If you are one of the traders who is really disgruntled by your current trading approach or feel misled by the false promises of rehashed indicators that promise you riches, then probably now is the time for you get rid of all the unwanted trash and start afresh.
Renko charts makes for an ideal way to understand the markets. Support and resistance levels, an important element in Renko charts are easier to spot and understand as compared to the spikes or fake bars one often sees with traditional charting. Besides this aspect, Renko charts offer a better view in understanding the direction of the markets, namely the trends and also the retracements that occur within the trends.
While trading with Renko charts doesn’t guarantee that your trading will turn around, it does offer a great way to start trading without the help of crutches such as depending on signal services or managed funds.
If you are a serious trader and considering making a living by trading forex, do give Renko charts a try. It may seem complicated at first but soon enough you’ll start to love them so much that you wouldn’t bother looking at candlesticks or line or bar charts.
Ranga is a renko charts trader and an enthusiast. You can visit Renkotraders.com to learn more about trading with Renko charts.
Click here to post comments
Join in and write your own page! It's easy to do. How? Simply click here to return to Forex trading articles - general.