Download the proven Renko indicator for Metatrader 4 script, which I use every day. This is my favorite version of Renko bricks with wicks which make it easier to analyze price movements.
Download Renko for Metatrader 4 here:
How to install and setup Renko step by step
First, download zip file. Next, extract zip file. Now you should have Renko folder:
Open folder. Inside you’ll find two files. Copy them:
Open Metatrader 4. Go to File menu and click “Open data folder”:
You should see folders from your Metatrader. Open MQL folder:
Next, go to Experts folder:
Inside Experts folder paste Renko files.
Restart (close and open) Metatrader.
Open Navigator and expand Experts list:
Find Renko on the list and double click it:
Next, in settings you can specify the boxsize. Also make sure that autotrading is on and face in the corner is smiling:
Go to the other tab and make sure that options are set like on the screen below:
That’s it. Now you can go to Open offline menu:
Find your instrument with M2 timeframe:
and there you have it – Renko chart:
Renko is a type of candle formation where each candle is a block (Renko) of the same size.
A new block appears only when there is a movement with a minimum size of one block. This chart is independent of time.
It is best understood when compared to a normal candle chart.
Normal candle chart – 1 hour timeframe. In this case each new candle will appear after one hour. It will have its open, high, low, close. And so every hour.
Renko chart – brick size 10 pips. A new Renko brick will only appear if there was a movement of at least 10 pips.
Advantages of Renko charts
The biggest advantage is of course the removal of unnecessary noise. Traditional candle charts, especially when there is sideways movement, show a lot of noise and false signals. This is due to the fact that candles appear according to a fixed period of time. Even if there is no trend and you are on an hourly chart a new candle will appear every hour. This is why oscillators work well in a trend and worse when the market is flat.
Renko solves this problem because it only adds new blocks when there is specific move.
This also makes signals from oscillators or other techniques more effective. The oscillators process only the most important price information thanks to the Renko.
These are excellent charts for people who like to follow the trend. A common problem with trend trading is to take profit too early, after which the trend continues and profits could be bigger. With Renko’s help you have fewer signals, trends are clearer and it is easier to stay with open position longer and have more profit.
How to set Renko parameters?
Setting parameters is one of the most important things with Renko. Based on the parameters the size of Renko block is calculated.
You have two types of calculation:
- calculation on the basis of ATR – that is price volatility – if the price volatility is high then the size of the blocks will be bigger. If the volatility is low, then the size of the blocks will be small
- manual input of the block size – you determine the size of each block yourself
Calculation based on ATR
You will do it in options:
Manual input of the block size
Definitely a more popular option. In case of Metatrader 4 and Forex pairs traders prefer to set the block between 5-10 pips.
If you’ve added a Renko chart and want to change the size of the block, you’ll do it here:
What to pay attention to when choosing a block size?
First, adjust the block size to your strategy. If your strategy is trend trading and you want to hold a position for a few weeks or more, choose a larger block size like 20, 50 or even 100 points.
If you prefer swing trading or generally typical short term trading where the position is open for several hours, a day or a few days then choose smaller blocks. On Forex, these can be blocks of 5-10 pips.
How do you know that you’ve chosen the wrong block size? If you see that after a given move too many blocks appear at once it means that the size is too small. For example, if you set Renko’s size to 2 pips even with small movements, several blocks will appear at once. That’s a sign that your block size should be bigger.
Frequently asked questions
How to add Renko charts to Metatrader 4?
You need to download Renko script and then install it in Metatrader. The download link and installation instructions are here.
Can I use Renko for day trading strategies?
Yes, Renko works well with day trading strategies. Just choose a smaller size of Renko block.
Can I use Renko for trend following strategies?
Yes. Remember to choose a larger Renko block size. With Renko you have less false signals and it is easier to keep your trade open for a long time. It is perfect for trend following strategies.
What is the best Renko size?
Depends on your strategy. Test a few different sizes, check how the price behaves in the Rekno charts and based on this, choose the size that suits you best and gives the best signals. In Forex, most pupular Renko box sizes are between 5 and 10 pips.
Can I use oscillators together with Renko?
Yes, the oscillators are based on price. Renko removes a lot of irrelevant information from the chart. Thanks to that you have better signals from oscillators.