Renko charts are a type of chart used in forex trading that focuses on price movements rather than time. Unlike traditional candlestick or bar charts, Renko charts use bricks to represent price movements. These bricks can be either bullish or bearish, and their size is determined by a pre-defined value called the box size. Renko charts are popular among traders because they help to filter out market noise and provide a clear view of the trend. To get alerts for Renko charts, traders can follow these steps:
Step 1: Choose a Renko charting platform
The first step is to choose a Renko charting platform that supports alerts. Many trading platforms, such as MetaTrader 4 and TradingView, offer Renko charts as an option. However, not all platforms support alerts for Renko charts. Traders need to ensure that the platform they choose has an alert system that can be customized to their needs.
Step 2: Set up the Renko chart
Once traders have chosen their platform, they need to set up the Renko chart. They should select the currency pair they want to trade and choose the Renko chart type. They can then choose the box size, which determines the size of each brick on the chart. The box size should be chosen based on the volatility of the currency pair and the time frame being used.
Step 3: Set up the alert system
After setting up the Renko chart, traders need to set up the alert system. They should select the alert type they want to use, such as email, SMS, or pop-up message. They should then set the alert parameters, such as the price level, the direction of the trend, and the time frame. Traders should also consider setting up multiple alerts for different levels of the trend, such as support and resistance levels.
Step 4: Test the alert system
Before relying on the alert system, traders should test it to ensure that it works properly. They can do this by setting up a test alert and observing how it works. They should also test the alert system on different devices to ensure that it works on their computer, phone, or tablet.
Step 5: Monitor the alerts
Once the alert system is set up and tested, traders need to monitor the alerts. They should pay attention to the alerts and take action accordingly. For example, if the alert indicates a bullish trend, traders may consider buying the currency pair. If the alert indicates a bearish trend, traders may consider selling the currency pair.
Renko charts are a useful tool for forex traders as they help to filter out market noise and provide a clear view of the trend. However, to get the most out of Renko charts, traders need to set up an alert system that can notify them of trend changes. By following the steps outlined above, traders can set up an alert system for Renko charts and use it to make informed trading decisions.