MetaTrader 5 Renko chart allows for the display of renko charts in the indicator window. Renko charts only show the price movements which are usually bigger than the specified box size and it also assists in eliminating the noise and allows the trader to ultimately focus on the main trends in the market. By so doing, it gives the trader the ability to invest into the market with ease and high level of confidence.
In MetaTrader 5 renko chart, time is not a factor as only price movements are taken into consideration, unlike what is obtainable in candlestick charts. This is one of the major reasons why MetaTrader 5 renko chart is not usually synchronized with the main chart it is attached to.
MetaTrader 5 renko charts indicatior works in two modes i.e. the close and high low modes. In the close modes, only prices are taken in consideration while building up the chart while in the high-low modes, only the hig/low prices are taken into consideration.
The MetaTrader 5 renko chart box can be specified in two different ways namely;
1. PIPs which are an absolute value of pips.
2. ATR which is a current value of ATR in indicator. Please note that, ATR will be different each time you reattach or reinitialize the indicator.
ADVANTAGES OF METATRADER 5 RENKO CHART
1. PREDICTION OF FUTURE PRICES
Trading strategies and market trends are some of the factors (apart from the exchange rate and economy). These two are the major determinants of how successful a business becomes. While some traders prefer to trade with the trend, there are some times when it is better to trade against the trends because the market may suddenly favor that. All the trader needs, is to be engaged in a well calculated move so that the market will favor the trading strategy.
2. SOURCE OF INFORMATION
The data displayed in the MetaTrader 5 renko chart usually gives the trader a general idea on what direction the market s moving at the time of study. The renko chart will clearly reveal if the market has been experiencing an uptrend, downtrend or even neutrality. From the study of the market trends, the trader can either decide to trade with or against the trends. In trading, it should however, be noted that, trading against the trends should only be done under special conditions.
3. AFFECTS DECISION MAKING
While a lot of traders are only interested in the money and not the market, the data from the MetaTrader 5 renko chart can assist them in having a general knowledge about how their currency pair of interest is faring in the market. This information will go a long way in affect the decision making capabilities of the traders. To enjoy your investment into the forex market, it is very important that take note of all the exchange rates in the market.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.