Interested in a forex trading system that is both tested & proven to be incredibly effective?
I thought so.
This article will go over the Renko Ashi Trading System, more specifically the Renko Ashi Trading System 2 (the second version).
You will learn about how this system works, what ‘Renko’ even means, and how you can use it to make profitable forex trades.
Even if you are an absolute beginner, this system can help you with your trading.
The strategies discussed in this post can be learnt by almost anyone (assuming you are at least comfortable with the basics of trading forex).
Let’s get into it.
Renko Ashi Trading System 2 – Getting Started With The Best Renko Trading System
The Renko Ashi Trading System 2 is entirely based on the Renko Chart, a Non-Time-frame analysis.
Unfamiliar with Renko Charts?
Let me explain:
Renko is a type of chart that instead of using standardized and price time intervals (like most charts), it uses only price movement (and filters out minor price movements so that traders can focus on the important trends only).
The renko chart was made by the Japanese – Investopedia.com reports that this chart type is named since ‘renga’ is the Japanese word for ‘bricks’. (This is because the Renko Chart looks much like a bunch of bricks, as pictured below).
In the renko chart, bricks appear when currency prices move a certain amount.
The blocks are beside one another at 45 degree angles.
In the renko chart, the ‘bricks’ can be a variety of different prices.
(10 cents, a dollar, 5 dollars, etc.)
The time scale in Renko Charts is not fixed – time doesn’t cause the separation of the candles to one another… it is shifts in pips and prices that do.
For example, instead of the chart moving by the minutes, a Renko chart might move when a currency pair shifts 10 pips worth.
If the box size is set at one pip and the price of a currency shifts on pip worth, then a new brick appears on the chart. No bricks appear if it does not reach the limit – as in, if it only got to half a pip, nothing would appear.
The bricks aren’t drawn beside one another – so, if the price were to drop back to the original, no brick would appear… only if it were to dip below the original price by one pip (assuming that’s the box value), then another brick would be drawn.
Hope this makes sense.
(If not, simply look up ‘Renko Charts’ on Google, you will find more info).
When using indicators, Renko Charts are seen as better than typical charts because candles can look different when using a GMT broker.
By this, I mean that indicators can look different depending on your broker, which is not good.
So, this is why Renko Charts work.
In forex, we are worried about price, and price only (usually).
We are dealing with currencies and shifting values to make our money, and the values are what cause us to sell or buy.
Renko Charts allow us to focus only on price without the distraction of time.
A time axis is shown, yet time intervals aren’t fixed.
The trader can alter the settings of the Renko Charts to fit his/her personal preferences (such as box size).
SO, now that you understand the basics of Renko Charts, we can get into the actual Renko Ashi Trading System 2.
It’s very simple: the ‘Renko Ashi Trading System 2’ is a system based off of indicators and the Renko Chart.
If you’ve read all the info above, you are ready to start using the Renko Ashi Trading System.
You can find it here:
And all the necessary files can be found on this thread:
There you go!
Best Renko Scalping System
The ‘Simple Renko Scalping System’ posted by user ‘ranga’ on the RenkoTraders.com site is by far the best scalping system I’ve come across, as far as using Renko Charts goes.
It is a simple yet effective strategy for forex trading, and the accuracy is high.
That said, as with other scalping methods, you must be quick with your hands and ready to make quick decisions when necessary.
Also, you must be at least slightly familiar with the forex concept called divergence.
- This system is all about small profits when opportunities arise in the markets
- Trades are held over very short periods of time (as is with most scalping methods)
- This system uses trading on Renko Charts with smaller box sizes
- The idea is to identify trades where divergence is seen, with prices either trading below or above outer Bollinger bands
- A rule is to never enter at market
- The risk/reward ratio is 1:2 or 1:3
Now let’s take a quick look at the Mean Renko Bar Trading Strategy.
Mean Renko Bar Trading Strategy
A ‘mean’ Renko Chart simply means that the open is different.
As in, the open in a ‘mean’ Renko Chart is a ‘synthetic’ price.
It is based on the mean of the brick size that is being used as an offset.
So, a new bar doesn’t necessarily mean that the opening price occurred.
Many forex traders will disagree on whether a standard Renko chart or ‘mean’ Renko chart is better.
It’s all up to the trader – neither one is essentially ‘better’ than the other.
Try both, and make your own decision.
There are many strategies that use the ‘mean’ Renko Charts, such as this one:
Make sure to examine ‘mean’ renko bar trading strategies in addition to standard renko bar strategies during your research of Renko chart forex systems.
There are SO many strategies and systems on the internet that use Renko Charts.
You can find these on Google, YouTube, and many other forex-related websites and forums.
When finding a strategy or system for you, make sure you do your due diligence to ensure you are experienced enough to understand how the system works and can use it properly.
If you are able, then finding and using a forex system is a great way to stay consistent and get closer to forex success.
Learn to Trade Forex
The Renko Ashi Trading System 2 (and others) will only benefit you if you already know the basics of making money on the foreign exchange markets.
If you don’t already have the essential skills, no system or indicator will help you make money.
For those who need some assistance in learning the ins and outs of the forex game, or want to learn how to consistently make big and profitable trades, you should go ahead and read about a program that will take you from beginner to pro in a matter of weeks.
Also, if you haven’t already, make sure to grab our Free Forex Trading Fortunes PDF – enter your email below to get it sent straight to your inbox immediately.[convertkit form=1499651]