The Renko Time and Time Between Candles Indicator For MT4
Table Of Contents:
- The Renko Time and Time Between Candles Indicator For MT4
- Trade-ideas with the Renko Time and Time Between Candles Indicator
The Renko Time and Time Between Candles Indicator For MT4 is a simple indicator that displays the difference in time between candles in seconds. The time is visualized using simple vertical bars. The longer the bar the more time it took until the next candle has started. The Indicator can be used on regular candlestick charts, but its main purpose is to use it with renko charts.
With regular candlestick charts the indicator can indicate dropped candles, when you see that the next candle starts late. If this happens too often at places, which are not right at the switch of a period, like the switch to the next day, you might want to change to a different broker.
However the main use for the Renko Time and Time Between Candles Indicator are renko charts. You can find all the information on renko charts as well as a very good renko chart indicator over on this page: The Renko Chart Indicator For MT4
I will presuppose that you at least have a basic understanding of renko chart from now on.
In the following I will show you some advantages of the indicator as well as an easy, yet very profitable strategy with this indicator.
Trade-ideas with the Renko Time and Time Between Candles Indicator
The biggest advantage of the indicator lies in its very easy usability. Renko charts are widely used and many successful traders have a very high opinion on them. As you can see in the above picture, it can be a very good idea to use the Renko Time and Time Between Candles Indicator with the included MA and build a strategy around it.
In the above picture I used the indicator with the settings of “MAtype = 0” and “MAperiod = 4”. In addition to that I used a fixed maximum to gain better visibility of the bars.
My idea was to enter a trade once a new brick with a different color than the brick before had formed while the bars of the Renko Time and Time Between Candles Indicator are below the MA. I would place my SL right above or below the brick that gave the signal. The green arrows are used to display winning trades while the red arrows are used to display losing trades. As you can see in the picture, using this strategy you would have had 17 winning trades and only 5 losing trades.
Now depending your targets and the trademanagement you use, you can get some very large winning trades with this strategy. One idea regarding potential targets is to use no target and only exit your trades manually once a signal in the other direction occurs. Using this method it might be a good idea to use a trailing stop at the low of each new brick and secure some profits.
In this picture you can see, that you could have reached R13 with one single trade. This means that you would have made profit which is 13 times your initial risk.
I will explain the reasoning behind this trading strategy in the following. As you know renko charts need to move twice as much to create a brick in the other direction of the previous brick then they would need to move for a brick in the same direction as the previous bar. Now if the time to create a brick in the different direction (covering twice as much distance) is still lower than the MA4 that can be an indication of strong momentum to the other side, which in turn can lead to a change of the trend direction and thus very large profits.
As you can see the Renko Time and Time Between Candles Indicator can be very useful for every trader.