Forex Renko Charts FX Trading System

Forex RenkoCharts FX TradingSystem

DisclaimerFOREX trading, online foreign exchange trading, foreign currency trading and Forex options trading involves risk of loss and is notappropriate for all investors. Each investor must consider whether this is a suitable investment. Past performance is not indicative offuture results. Before investing or trading one should be aware that with potential profits there is also potential for losses that may bevery large. Those acting on this information are responsible for their own actions. Information contained in this site has beenobtained from sources believed to be reliable, but it is not necessary all inclusive and is not guaranteed profits.Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept themin order to invest in the Forex market. Do not trade with money you can't afford to lose. No representation is being made that anyaccount will or is likely to achieve profits or losses similar to those discussed on this presentation. The past performance of anytrading system or methodology is not necessarily indicative of future results.Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However,before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience andrisk appetite. There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currenciesinvolves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantiallyaffect the price or liquidity of a currency. Moreover, the leveraged nature of Forex trading means that any market movement willhave an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists thatyou could sustain a total loss of initial margin funds and your position will be liquidated and you will be responsible for any resultinglosses. Investors are recommended to lower exposure to risk by employing risk-reducing strategies such as 'stop-loss' or 'limit' orders.We will not be held responsible for the reliability or accuracy of the information available on this ad/presentation. We assume thatyou are legally permitted to use our products. Making sure that you are following the global and your local laws and legislations isyour responsibility. We cannot be held responsible for any damages or lawsuits against you do to such regulations.CFTC RULE 4:41HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOMEOF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANYACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSESHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEENHYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLYACHIEVED BY ANY PARTICULAR TRADING PROGRAM.ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEYARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION,HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICALTRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK INACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERETO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIALPOINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARENUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THEIMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLYACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTSAND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.2

Table of Contents1.2.3.4.5.6.7.8.9.10.IntroductionFX AccuchartsPrice ChartsRenko Bar BasicsBuy / Sell SetupsTrader Types - SetupsTrade ExitsSetting Up Your FX AccuchartsMoney e,page,page,page,456-78-910-1314-16171819203

IntroductionCongratulations, you now have my Forex Renko ChartsFX Trading System in your hands. I am going toshow you 2 simple yet powerful FX tradingsetups. Keep It Simple!The Forex Renko Charts FX Trading System is adisciplined approach to controlling risk andmaking money. These are your 2 primaryobjectives for trading.Over 95% of FX Traders fail for 3 reasons:1.2.3.Lack Profitable Trading SystemLack Discipline to Follow Trading SystemLack Control of 2 Emotions: Fear & Greed4

FX AccuchartsCharting is an essential tool for any forex tradingstrategy.I use FX Accucharts which are FREEfrom FX Solutions UK (fxsol.co.uk) if you open aDEMO account.TheForex Renko Charts FX Trading System uses FXAccucharts.All of the technical setups andparameters you will read about in this book arebased on FX nvenience of trading and analysis together byallowing traders to place trades from thecharts.FXAccucharts is fully customizable tocomplement your forex trading style.fitand5

Basic Price ChartsBar ChartCandlestick Chart6

Renko Bar ChartsRenko Bar Chart7

Renko Bar BasicsHow is a 10 pip renko bar formed?1.A new green (UP) renko bar forms only after thecurrent price surpasses the top of the previousrenko bar by 10 pips.2.Green renko bars open on the bottom of the barand close on the top of the bar. Green renkobars display the closing price which is alsothe HIGH price for this green renko bar.3.A new red (DOWN) renko bar forms only after thecurrent price surpasses the bottom of theprevious renko bar by 10 pips.4.Red renko bars open on the top of the bar andclose on the bottom of the bar. Red renko barsdisplay closing price which is also the LOWprice for this red renko bar8

Renko Bar AdvantagesRenko Bar Charts offer the following advantages:1.2.3.4.5.6.Visual AppealZero IndicatorsObjective Decision-Making ProcessFilters Out Market Noise, i.e. “whipsaws”Displays Areas Of Support And ResistanceBased On Price Action (movement of prices)Renko bars remove the “distractions” seen ontypical bar or candlestick charts. Thesedistractions include “whipsaws” such as longwicks, false breakouts and price volatility.Renko bars clearly define current trend andkey price levels such as support & resistanceand trend reversals.9

#1 Buy Setup Rules A #1 Buy Setup represents a pullback in acurrent trend. Look for the following:1.A trend (x-y) or sequence of green renko barsfollowed by a pullback (y-z) of red renkobars.2.Wait patiently for the 1st green renko bar(Trigger Bar) to close immediately followingthe pullback. Enter trade here.3.Make sure the last red renko bar (z) on thechart is higher than the last red renko bar inthe previous pullback (x).4.This setup is a higher swing low. Place yourstop loss underneath this higher swing low (z)or the previous swing low (x)10

#1 Buy Setup Chart11

#1 Sell Setup Rules A #1 Sell Setup represents a pullback in acurrent trend. Look for the following:1. A trend (x-y) or sequence of red renko barsfollowed by a pullback (y-z) of green renko bars.2. Wait patiently for the 1st red renko bar (TriggerBar) to close immediately following thepullback. Enter trade here.3. Make sure the last green renko bar (z) on thechart is lower than the last green renko bar inthe previous pullback (x).4. This setup is a lower swing high.Place yourstop loss above this lower swing high (z) orabove the previous swing high (x)12

#1 Sell Setup Chart13

Scalping - Setups1.2.3.4.Determine How Much Risk: Money ManagementIdentify a FX trade setup (Buy or Sell Setup)Enter tradeManage trade/exitsRenko Bar Chart Parameters:1.2 or 5 PIP renko bars2.Use a 10 TICK chart (Look for CLOCK icon)3.EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/CHF,USD/JPY, NZD/USD, CAD/JPY, EUR/JPY and GBP/JPYTrade Exits:1.3 Renko Bars Reversal:3 renko bars of opposite color appear andclose on charts. Use a 6 to 15 piptrailing stop if you want to “automate”this type of Trade Exit.2Fixed Amount:100% exit at 1st profit target. Use afixed take profit to “automate” this typeof trade exit.14

Swing - Setups1.2.3.4.Determine How Much Risk: Money ManagementIdentify a FX trade setupEnter tradeManage trade/exitsRenko Bar Chart Parameters:1.10 PIP renko bars2.1 minute time frame3.EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/CHF,USD/JPY, NZD/USD, CAD/JPY, EUR/JPY and GBP/JPYTrade Exits:1.3 Renko Bars Reversal:3 renko bars of opposite color appear andclose on charts. Use a 30 to 50 piptrailing stop if you want to “automate”this type of Trade Exit.2Fixed Amount:100% exit at 1st profit target. Use afixed take profit to “automate” this typeof trade exit.15

Position - Setups1.2.3.4.Determine How Much Risk: Money ManagementIdentify a FX trade setupEnter tradeManage trade/exitsRenko Bar Chart Parameters:1.25 PIP renko bars2.1 minute time frame3.EUR/USD, GBP/USD, USD/CAD, AUD/USD, USD/CHF,USD/JPY, NZD/USD, CAD/JPY, EUR/JPY and GBP/JPYTrade Exits:1.3 Renko Bars Reversal:3 renko bars of opposite color appear andclose on charts. Use a 75 to 125 piptrailing stop if you want to “automate”this type of Trade Exit.2Fixed Amount:100% exit at 1st profit target. Use afixed take profit to “automate” this typeof trade exit.16

Trade ExitsTradeExits are a very important function of atrader’s profit/loss performance.Ideallyeach individual forex trader needs to find anexit strategy which fits his/her tradingpersonality and trading objectives.Whether you are a Scalper, Swing or Positiontrader, you need to experiment with your tradeexits in an effort to maximize your profits.Scalping: I suggest starting with 3 to 5 RenkoBars or a 10 to 15 pip stop loss and using a1:1 take profit or use a 10 pip trailing stoploss set on initial 15 pip stop loss.Swing: I suggest starting with a 3 Renko Bar or 30pip stop loss and using a 1:1 or 2:1 takeprofit or use a 10 pip trailing stop loss seton initial 30 pip stop loss.Position: I suggest starting with a 3 Renko Bar or75 pip stop loss and using a 1:1 or 2:1 takeprofit or use a 10 pip trailing stop loss set17on initial 75 pip stop loss.

Setting Up Your ChartsAfter you install FX Accucharts, double click theFX Accucharts icon on your desktop and followthese steps to set up your Renko Bar charts:1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.click the “view” tab and choose “navigation pane”double click the currency pair of your choiceclick the “x” to now close the navigation panestretch chart to fit your screen by grabbing with your mouseright click anywhere on chart and choose “properties”click “time region” and change records to “25,000”click “ “ in front of currency pair and click “display”click “renko” in the chart modetype in 0.0002 for a 2 pip renko bar in “price step”, ortype in 0.0010 for a 10 pip renko bar in “price step”, ortype in 0.0025 for a 25 pip renko bar in “price step”if currency pair is a “jpy” cross use 0.02, 0.1, 0.25click “type” and choose “1 minute” for intraday settingsclick “ok” then click file tab and choose “save workspace as”create a workspace file name and click “save”choose fewer records for “time region” if you are using scalpingsettings. choose more records if you want to see more data onyour screen.in the lower right corner of your screen is a blue flag, click thisblue flag and choose “chart reset” anytime to center data18

Money ManagementKeep your1.2.3.% risk the same for each trade.Conservative:0.5 % - 1.0 %Moderate:1.0 % – 3.0 %Aggressive:3.0 % - 5.0 %Start conservative until you develop thediscipline to recognize the 4 FXtrade setups and execute them withoutmaking any mistakes.Adjust your % Risk each Week. Thisapproach will protect your tradingcapital when you are losing trades,and allow you to grow your capitalfaster when you are winning trades.Always keep your % Risk where you decideit needs to be. Adjust your positionsize if you need to use a larger stoploss. Do not use a larger % Riskwith larger stop loss.19