Forex Trading Channel Renko System

Forex Trading Channel Renko System applies multiple trend and momentum based indicators in order to come up with a strategy that closely monitors the market trend and produces trade signals within the correct trend directions. This system not only identifies potential trade opportunities but also guides its users through determining the stop and take profit areas against each market entry.

Forex Trading Channel Renko System can be applied to trade all kinds of forex currency pairs in the market. Moreover, this system fits great with all sorts of timeframe charts within the Forex Metatrader 4 trading platform.

Forex Trading Channel Renko System Overview

After the installation of Forex Trading Channel Renko System at the MT4 terminal, your trading chart should appear like the following image:

Forex Trading Channel Renko System Overview

Forex Trading Channel Renko System Anatomy

Forex Trading Channel Renko System Anatomy

  • Heiken Ashi: A very popular indicator among the trend following traders around the world. This indicator appears as the main price bar and signals the trend by changing its color. It turns blue if the market is in the bullish trend and turns red to signal the bearish trend of the market.
  • M15 TMA Bands: This indicator simply forms an envelope that determines the possible high and low of the market momentums. The basic rule is to look for long entry from the lower band and sell from the upper bands.
  • SM Fisher Transform 3 & Repulse2: Both of them work in the same manner to identify the market momentums. Any of these indicators turn positive in value means the existence of the bullish momentum in the market trend and turns negative in order to signal the bearish momentum of the market.
  • Trend Wave: Trend Wave produces crossover trend signals. Its green slope moves above the red one represent the bullish crossover and an opposite scenario is considered as the bearish crossover signal of the market trend. The bullish crossover carrying a positive value and the bearish crossover with a negative value means the confirmation of the trend-based market entries.

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Forex Trading Channel Renko System: Trading Rules

For Long Entry

Forex Trading Channel For Long Entry

  • Heiken Ashi turns blue
  • A bullish bar forms near the lower M15 TMA Band areas
  • Both SM Fisher Transform 3 & Repulse 2 turn positive at the same time
  • Trend Wave remains positive in value and produces bullish crossover signal
  • Buy triggers when the above conditions are met
  • Set stop loss below the lower M15 TMA Bands
  • Exit long/take profit whenever SM Fisher Transform3 turns negative and Trend Wave plots the bearish crossover signal 

For Short Entry

Forex Trading Channel For Short Entry

  • Heiken Ashi turns red
  • A bearish bar forms near the upper M15 TMA Band areas
  • Both SM Fisher Transform 3 & Repulse 2 turn negative at the same time
  • Trend Wave remains negative in value and produces bearish crossover signal
  • Sell triggers when the above conditions are met
  • Set stop loss above the upper M15 TMA Bands
  • Exit short/take profit whenever SM Fisher Transform3 turns positive and Trend Wave plots the bullish crossover signal

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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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