In this post I will be reviewing the Forex Ertha Renko Strategy which is a unique and innovative forex trading strategy that has been developed for manual trading in the MT4 platform using Renko bar charts rather than the traditional bar, line or candlestick charts that we are already so accustomed to.
I think the concept behind the Forex Ertha Renko Strategy is great and it is always good to see a develop produce something different when compared to the thousands of repetitive forex strategies that I see. For me, anyone who has taken the time to learn, implement and build a Renko trading strategy, should have good trading knowledge.
With that being said, in this Forex Ertha Renko Strategy Review, I will take a closer look at this forex strategy and how it works. We will also cover the key features along with the pros and cons. This will hopefully help you to decide if this forex software can help you to reach your financial goals.
Forex Ertha Renko Strategy
The Ertha Renko Strategy is designed to remove a lot of the market noise generated by the standard candlestick charts. If you’re tired of using the same old Japanese candlestick charts, then you might want to consider the Renko charts. By employing Renko charts we remove the time element and only focus on the price isolating the trend.
Renko is a type of chart for displaying asset price movements. This is an alternative to Japanese candlesticks in representing price changes. Candlestick charts focus more on timeframe and small price details than Renko charts. A new candlestick will form at every time interval, regardless of how far the price moves. The Forex Renko chart looks like two-coloured bricks of the same length and width, where each subsequent brick is either higher or lower than the previous one.
Renko charts, like Heikin Ashi, show price movements free from minor fluctuations. Filtering makes trend detection easier. The bars are the same size because time is not taken into account in the system. When utilised correctly, Renko charts can help to eliminate confusion based on price direction and can be incorporated into a trend trading strategy.
Usually you specify the size of one brick in the settings along with the formation period. It represents the number of points that the price must pass in order for the indicator to draw one bar. The larger the size, the less movement, but the higher temporary deformations and smoothing. Therefore, a smaller brick size increases the sensitivity to volatility.
Renko bars or bricks are constructed using only closing prices and are placed at 45-degree angles next to each other. While they have a time axis, it is only meant to be considered if the set movement (closing prices) has been realized and not to show elapsed time. Bullish bricks form above the previous bricks, whereas bearish bricks form below the last bricks.
Renko bricks are never drawn next to each other. For an opposite brick to be printed next to the other, the asset price must move at least twice the set movement. For instance, if a brick size is 50 pips, for a Renko chart to show a transition from a bullish brick to a bearish brick, the price must close lower by at least 100 pips.
The Ertha Renko Strategy will alert you of every new signal in 3 different ways (push notification to phone, Email alerts and chart sound alerts). This can save you from needing to sit at your computer all day long waiting for trading signals to appear. You can simply load the software onto the Renko charts of the financial instruments that you wish to follow. The software will then notify you when there is a buy or sell signal according to the built-in trading algorithm. From there, you can decide if you would like to enter the market are wait for the next signal alert to come along.
Forex Ertha Renko Strategy Features
- Renko charts are built offline chart builder tool which works as indicator
- Ertha Renko signal is a non-repainting indicator which was optimized specially for offline chart setup
- Ertha Meter with a lot of functions for you to follow currency pairs correlation power
- Depending on your trading style, Ertha Renko Strategy can be quickly and easily set to suit your approach to trading
Forex Ertha Renko Strategy Summary
Overall, I really like the Ertha Renko Strategy for a few reasons. Mainly, it is very different from the usual forex strategies that you can build yourself in the MT4 platform simply due to the fact that it is using Renko charts. One could perhaps argue that the price is worthwhile for the Renko charting capability alone. You could even use it just to get Renko charts and develop your own Renko trading strategy. Otherwise, you can of course just use it as is “straight out of the box”.
However, if you do decide to follow it exactly as explained in the instructions, I think there will be some limitations. I would personally want to confirm each buy or sell Ertha Renko Strategy signal with my own trading strategy before taking a position. If you were to take all trading signals that it generates blindly, I do not think that it can reach its potential. As with any forex trading system, there will be good and bad signals, but every trader is different. For that reason, I think the strategy will be better for those who can analyse the markets for confirmation.
Then we need to consider forex money management. You could have a forex strategy with the best entry criteria on the planet, but if the stop loss and take profit levels are not sensible, it wouldn’t really matter. I have often seen the exact same forex system give completely different results imply due to the forex traders having a different money management strategy.
If you like the sound of Renko forex trading strategies, you might want to check out some other Renko systems that I have reviewed including the Renko Charting Package, Renko Maker Pro Trading System and the Renko Street Trading System.
Forex Ertha Renko Strategy
$37
Pros
- Unique Trading Strategy
- Powerful Renko Charts
- Customisable Settings
- Combination of Market Analysis
- Clear Buy/Sell Signals
- Detailed Instructions
- Any MT4 Forex Broker
- Any Trading Instrument
- Detailed Instructions
- Full Support
Cons
- MetaTrader 4 Only
- Quite Complicated To Setup
- Need To Filter Signals
- Takes Time To Learn How To Use
- No Verified Results
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
