Learn to trade forex using renko charts on MT5
In this video during the London forex session, we explain how to use the renko indicator for MT5 to trade using non time based charts which reveal momentum.
00:11
Using multiple time frames for cable analysis
00:11
The speaker explains their approach to using multiple time frames for trading analysis on the Ninja platform. They primarily use a 10-minute chart combined with 3-minute and hourly charts, along with daily charts, to understand candle configurations and whether a trading pair is consolidating or trending on slower time frames. The 10-minute chart is preferred for its effectiveness, though alternatives like 15-minute or 5-minute charts are suggested for platforms like MT4 or MT5. They observe recent price action, noting that the pound has been selling, with notable movement around 7:30 leading up to the London market open.
01:26
Price action near London open and currency flows
01:26
The segment discusses currency market behavior leading up to the London open, focusing on the British pound (cable) which was moving sideways amid significant selling pressure. It highlights a divergence where strong dollar buying continued alongside pound selling. The explanation covers how buying and selling pressures can rotate among currency pairs depending on local timezones and trading sessions, causing fluctuations even if a currency appears oversold or overbought.
02:41
Dollar buying impact on cable and market rotation
02:41
The speaker discusses a shift in market dynamics driven by the US dollar’s influence on the cable (GBP/USD) currency pair. Using a profile setup on MT5, they highlight a significant price drop over the last two days, noting the volume point of control at 24.27. They also mention that cable performed well the previous week before the recent decline.
03:19
Renko charts for trend and congestion phases
03:19
The speaker explains the use of Renko charts for identifying entry, staying in, and exit points in trading. Renko charts help smooth price action and highlight congestion phases, which are periods of price consolidation. The example shows a move low and the onset of the London session, with trend dots turning bright blue on the Renko chart but not matching the trend monitor indicator, which is necessary for confirmation. The speaker also uses pivots and fractals to highlight congestion phases and notes the importance of recognizing trends and volatility to understand market behavior, including trend phases and choppy consolidation phases.
04:39
Identifying primary trend and reversals
04:39
The speaker explains how to analyze price trends using Renko charts, focusing on identifying whether a primary trend will resume or reverse during sideways movement. They highlight how Renko charts clearly depict the chart’s structure, including primary trends, pullbacks, and congestion phases, often without needing additional indicators. The speaker discusses using various tools such as moving averages, support and resistance levels, and volume profile indicators like the volume at price and camera ruler levels on different chart timeframes. They emphasize the importance of the 10-minute chart for observing key levels and interpreting the interaction of currency lines, noting that intertwined lines indicate a congestion phase.
06:25
Support and resistance levels on 10-minute chart
06:25
The speaker explains being in a congestion phase between resistance (R1) and support (S1), also called the neutral or buffer zone, where there is no clear market direction. They describe a volatility candle occurring during the London session, followed by another volatility candle moving upward. Although the price retreats, a key break is noted at the strong support level S1, leading to a downward move. The price then penetrates S2 with high volume but shows signs of reversal near S3 around 25.19, where many buy orders are positioned, suggesting a potential target price objective.
07:29
Significance of key indicator levels and round numbers
07:29
The speaker analyzes key support and resistance levels on different charts, focusing on specific price points such as S4 at 2486 and levels around 2524 to 2500. They emphasize the significance of levels that round to zero or five, highlighting their importance because institutional traders often place limit orders at these round numbers. The discussion also notes that price tends to pause, test, and retest these critical levels. Additionally, some buying activity is observed on shorter time frames like the three-minute chart, indicating market interest near these key areas.
09:12
Volume point of control and bearish pressure analysis
09:12
The speaker analyzes recent price action, noting an attempted rise followed by increased selling, resulting in choppy movement on faster timeframes. The volume point of control (VPOC) has decreased, indicating growing bearish pressure, which acts as a dynamic support and resistance level influenced by volume. This shift is encouraging for short sellers. The Renko chart currently shows a slight slowdown, suggesting a possible upcoming momentum or volatility trigger. Despite buyers attempting to enter after a series of declines, the market conditions and volume data imply that the bearish trend may persist for now.
10:58
Monitoring volume and price action for trade decisions
10:58
The speaker discusses monitoring key market levels, such as Camarillo levels, emphasizing that price movements can extend beyond expectations. They highlight the importance of watching volume, price action, and indicators closely, noting that buyers often step in at certain points due to limit orders. Traders must remain vigilant and use tools like Camarillo or Fibonacci levels to identify potential pause points in the market.
12:12
The focus is on observing the market’s emotion and trading based on actual market behavior rather than personal expectations. The speaker stresses trading against other traders’ views by carefully monitoring volume, price action, and indicators. They advise making market emotions work in your favor and emphasize the need to respond to real-time market data.
12:51
The speaker mentions keeping an eye on the Cable currency pair as it approaches the S4 level. They suggest watching for potential institutional buy orders around this point, implying it could be a significant area for market activity.
By Anna Coulling – creator of volume price analysis
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