Renko Trading Strategy EURUSD August 28, 2015

EURUSD is sliding on this Renko Chart

This morning the EURUSD pair is down considerably after rising earlier.

You can see on this Renko chart that price has fallen from a high of 1.1309 to 1.1258.

The fall in the EURUSD today may be related to a softening rate of inflation in Europe as well as today’s meeting of the European Central Bank. There is some feeling that there will be Quantitative Easing proposed which may have considerable effect on the EURUSD.

Her are a couple current articles on EURUSD.


Slowing German CPI to Hit EUR/USD Ahead of ECB Meeting? - DailyFX
http://news.google.com Fri, 28 Aug 2015 08:00:26 GMT
Slowing German CPI to Hit EUR/USD Ahead of ECB Meeting?DailyFXSigns of slowing inflation in Europe's largest economy may drag on EUR/USD and push the European Central Bank (ECB) to broaden its quantitative easing (QE) program as it undermines the Gov ...
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EUR/USD Technical Analysis: Aiming Below 1.12 Figure - DailyFX
http://news.google.com Fri, 28 Aug 2015 03:45:45 GMT
DailyFXEUR/USD Technical Analysis: Aiming Below 1.12 FigureDailyFXThe Euro declined for a third consecutive day against the US Dollar, with prices now aiming at support below the 1.12 figure. A daily close below the 61.8% Fibonacci retracement at 1.1 ...
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Trade Idea: EUR/USD - Sell at 1.1370 - Action Forex
http://news.google.com Fri, 28 Aug 2015 08:30:56 GMT
Trade Idea: EUR/USD - Sell at 1.1370Action ForexAs the single currency has recovered after falling to 1.1203 yesterday, suggesting consolidation above this level would be seen and corrective bounce to resistance at 1.1364 cannot be ruled out, however ...
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Ichimoku Renko Trading Strategy

 

You will find this Renko Strategy to be extremely simple and also very profitable as a quick scalping method. Once again, the indicators for this system are included in most trading packages or are freely available for download on the internet.

The only indicator I use for this method is the Ichimoku Kinko Hyo and I just use the Ichimoku Cloud and Tenkan Sen.

The Renko blocks are three (5) pips, they move quickly when the markets are busy.

The Strategy

You can see from the chart how well this method allows a trader to follow the trend.
For a long entry – price is above the Tenkan and also above the Kumo
For a short entry – price is below the Tenkan and also below the Kumo.
As you can see, the Renko bars point out clearly the places for adding to positions or re entry.





I put some arrows on this next one to show a couple entries.


For myself, I have been trading for many years, longer term trading and also day trading. I find this method of using the Ichimoku cloud and fast Renko Bars to be quite effective and profitable. The simplicity of this method allows me to have several charts open at once so as to make trades on different currency pairs simultaneously..

Of course a person can not expect to master this set up in a few minutes, it will take many hours of screen time and demo trading to get used to it.

Keep in mind that the better trades are made in a market that is trending with volume. I suggest that you look at another currency when the Kumo is flat in order to avoid the irritation of your stop being met.
In a future post I will discuss this method with CFD’s, it works just as well with all nature of CFD’s.

Enjoy!

Heiken Ashi Smoothed Renko Trading Strategy

Another Simple Renko Trading Strategy using the Heiken Ashi Smoothed Indicator.

Today I will demonstrate what is perhaps the simplest of the Renko trading strategies which uses free indicators and gives a good return on a regular basis.

For this strategy we need a couple free indicators and a free Expert Adviser.
First of all, I set up the expert adviser Renko 3.4 on a one minute chart of the EURUSD and use a pip count of 5. This will allow some scalping each day.

Next I open the ‘Offline Charts’ and open the EURUSD M2 which is the result of the expert adviser.

Setting up the actual Renko Chart

Once we have the Renko chart opened we will change it to a line chart and then change the line to ‘no colour’ so that it will not interfere with the colours of the Renko bars.

Next we can attach the Heiken Ashi bars indicator and then the Heiken Ashi Smoothed indicator. Again, these are freely available by doing a search on the internet. I suggest that you adjust the colors of the Heiken Ashi price bars so that it is easy to distinguish the price bars from the Heiken Ashi Smoothed indicator.

Let’s get to the Trade Entries

Looking at the chart, it will be easy to see where the entries are. We will wait until there is a close above or below the Heiken Ashi Smoothed and enter our trade. Screen time and practise are required to get these entries properly. A trader has to learn to use his/her discretion as the market is continually changing.

There are no short cuts, we all have to spend a certain  amount of time practising our skill, and that may be thousands of hours until we get it right.

One more thing we can do to this chart to make decision making even more simple…… we can add a moving average line to guide us as to which way to enter. When price is above the line we enter long trades only and when price is below the moving average then we enter short trades only.

I have added a 50 ma to this chart to simplify the decision as to long or short trades.

One proviso – it makes good sense to stay out of the market when that moving average is flat.!

Enjoy..