Get to know trading strategies using Renko charts

[FXOcrypto]

Various trading strategies have been built by traders in an effort to gain profits from market volatility. One strategy that is popular but perhaps traders rarely use is a trading strategy using Renko charts.

Different from other charts such as Candlesticks, Bars, and Line charts, the Renko chart arrangement is more like a pile of bricks which in Japanese is called Renga. Renko charts tend to be offline charts because each chart bar represents fixed price movements. For example, the Renko chart is set at 15 pips, then every 15 pips the price moves, and the renko chart will form a new bar. So the Renko chart arrangement looks neater than other charts.

Some of the advantages of using Renko charts include those as reported in the article by the FXOpen blog in the title "Renko Trading Strategies: How To Trade With Renko Charts" there are 4 advantages

• The simplicity of identifying market trends eliminates minor market fluctuations because a new chart will appear after a certain number of price movements have been fulfilled.
• Noise Reduction, helps traders stay focused on the main trend.
• Support and Resistance Clarity, easier to identify support and resistance
• Disciplined Trading, because the renko chart is set at the pip movement value, makes traders more disciplined.

What's more interesting is that Renko charts can be combined with other indicators such as Bollinger bands, Parabolic Sar, Moving average and so on.
Apart from that, Renko charts are also used for breakout trading, usually, breakouts occur after more than one Renko bar penetrates support or resistance.