Tipu Renko Live Indicator For MT4
The Tipu Renko Live Indicator For MT4 is a customized version of the popular Renko charting format that can be plotted without the use of the converter. It also enables a trader to select the method (High/Low or Close) and type (Bricks or Arrows) of plotting.
Trading ideas with the Tipu Renko Live Indicator For MT4
This trading tool is an extension of the Renko chart that traders have grown accustomed to. Renko charts plot independently of time, based on the movement of the market using a range of blocks which usually form a fairly steep diagonal angle. The traditional Renko chart indicator requires the converter in order to be able to plot or represent itself on charts.
This newer version is modified to a greater extent - it does not require the use of a converter. Therefore, what you will see is that there will be a Renko chart on your screen with the normal price action candles or bars being overlayed the Renko chart. This makes for a supreme trading experience because it enables you to have a comprehensive and unique perspective of the price activity in the markets.
There are plenty of ways that you can go about using this wonderful tool but in this illustration, I will show how to use it to pinpoint relevant resistance and support zones.
To start off this process we will switch maybe to the hourly-chart and then load the indicator as shown below. Just note that you can use any other chart but know that you will have to switch down to the lower time frames in order for you to look for probable entry points.
As you can see that the indicator has been loaded into the hourly-time frame. I selected a Renko size of 20. The size of the Renko charts is expressed in pips - so the height of the Renko blocks is 20 pips in size. I chose this size because on this chart consolidation phases are channeled into a 20-pip width tunnel.
Tipu Renko Live Indicator For MT4 - Support And Resistance
The image above gives you a clear indication of what the Tipu Renko chart indicator looks like when loaded into your screens. However, we are still not done here as we need to do some editing on the chart to show you how to identify strong areas of support and resistance.
As you can see the Renko block shows bullish blocks in blue and bearish blocks in red. Therefore, this makes it easy to distinguish the different phases of the market. But for the purposes of identifying resistance and support zones - we will be relying on both blocks. You see when the market is trending sideways or is going through a phase of consolidation - the Renko blocks will be printed as a rectangle in both colors - blue and red. These zones where the blocks are blue and red are the zones that offer you resistance and support. To have a better understanding of what I am trying to say here - you should just turn to the image below.
The image above shows you how you can go about drawing support and resistance lines emanating from the regions in the Renko chart that has a consolidation zone made up of a combination of red and blue Renko blocks. This was achieved on the one hour chart.
Tipu Renko Live Indicator For MT4 - Lower Time Frame
Below you will see that I switched down to the 15-minute chart to gain a closer look at the market in terms of its behavior relative to the S and R lines drawn on the higher time frame (hourly chart).
This image gives you an idea of how the market respects these lines. Yes, it is not a perfect science but you can clearly see how the market adheres to these zones as strong support and resistance points. Even the blue and red consolidation blocks coincide with the lines drawn on the hourly chart. It speaks to the credibility of the lines drawn on these charts. The points can be used to identify sell and entry signals depending on what direction the market is going in. Additionally, you could throw two or three Exponential Moving Averages in the mix to help you deduce the overall trend direction within the fifteen-minute chart.
The market sentiment confirmed on the higher time frame has to line up with the sentiment of the lower time frame. Then you will just execute trades in this unified trend direction. This ensures that the market works in your favor. It may not be a win all the time - however, you could yield consistent results if you were to execute this trading process in a detailed and disciplined manner.
This strategy should not be used on its own - instead you should use it as a foundation to your trading strategy so that you can reduce the possibilities of trading erroneously. Do not hesitate to use other time frames and currency pairs with this system - the trading process will not differ much.