Using time and non time based renko charts on MT5 to trade the GBP/USD currency pair
In the third part of this morning’s webclass I take a look at the GBP/USD pair and explain how to trade it using time based charts and volume price analysis and non time based charts in the form of the renko for MT5.
00:23
Cable profile and pound move overview
00:23
The speaker apologizes for technical issues with a stuck window on their monitor and proceeds to discuss the profile for the British pound (Cable). They reference a notable recent move in the pound against the New Zealand dollar and focus on the 10-minute chart for Cable, having isolated it from other currencies. They note that the pound is still moving higher during this period.
00:59
Dollar selling off vs pound new zealand
00:59
The discussion focuses on currency movements, noting that while the dollar is selling off, this trend hasn’t fully mirrored what has been observed in the New Zealand dollar. On faster time frames, pullbacks and corrections are evident, which are considered normal noise on slower time frames. Analysis of three currencies on a 10-minute chart shows the pound continuing to rise and the dollar falling. A notable crossover in the trade was seen on this 10-minute chart, though it was less pronounced than movements in the pound-New Zealand pair. Additionally, the usual volatility associated with the London market open was observed on a three-minute chart.
02:13
London open volatility and buying support
02:13
The trading activity centers around the volume point of control at 30.78, where price attempts to break higher but faces resistance, triggering volatility that keeps the price within the candle’s spread. There is a test and retest of this volume point, followed by a rise indicating buying interest in the British Pound. However, this buying is not as strong as previously seen in the New Zealand market. The current pullback shows a reasonable volume with candle wicks extending downward.
02:49
Price support and camarilla levels
02:49
The price is experiencing support, indicated by buying beneath the candles. The camarilla levels highlight why the price is temporarily pausing, as it has reached a significant level at approximately 31.01. The price is currently moving sideways, needing to break through this level to continue higher, prompting the question of its likely next movement.
03:24
Resistance levels and price targets
03:24
The analysis discusses the R4 level on the Camarilla pivot at 31.32, which aligns closely with the R1 level on the hourly chart at 31.21, marking a reasonable and significant price target for the pair. The presence of two important resistance levels around the same price suggests the potential for strong resistance. The price action shows a move higher followed by congestion and sideways trading, with attempts to break higher and subsequent pullbacks. The trend monitor reflects this uncertainty, shifting from bright blue to dark red around the London open, indicating volatility and mixed market signals.
04:38
Entry points and congestion analysis
04:38
The speaker explains that a clean entry point for a trade would have been once the price clears a specific high at 30.83, indicated by blue trend dots and a blue trend monitor. The trend has paused due to resistance levels identified on both the 10-minute and hourly charts, represented by the R3 and R1 levels respectively. These resistance levels suggest the price may struggle to move higher and face congestion as seen on the chart. If the price manages to break through this resistance, it sets a reasonable target, but the trade would be slower and less aggressive due to the volume and congestion involved.
05:56
Daily chart and seasonality insights
05:56
The speaker analyzes recent price action in the Pound New Zealand currency pair, focusing on a significant candle from the previous Friday. Although a sell-off was anticipated following that candle, the market initially dropped but then buyers returned, pushing prices higher. This movement contradicts typical seasonal trends for the British pound in August, which historically tends to weaken. The session highlighted a strong volume under the price supporting the move up, demonstrating that despite historical tendencies to sell, market dynamics can shift quickly, allowing for profitable long trades even if upward moves generally happen more slowly.
07:02
Renko charts and trade management
07:02
The speaker discusses how to interpret charts, emphasizing the importance of reading volume price analysis (VPA) signals and using Renko charts to aid entry decisions and maintain positions. Renko charts, which are non-time-based, help visualize price trends more clearly by smoothing out fluctuations and highlighting areas of congestion, trend directions, breakaways, and reversals. The speaker suggests a future session dedicated to non-time-based charts like Renko and tick charts to further explore their advantages over traditional time-based charts.
08:06
Support, resistance, and trend behavior
08:06
The segment explains the concept of support and resistance levels in market charts, highlighting a quadruple bottom pattern as an example of strong support. It emphasizes the need for flexibility with these levels, as prices may briefly break through and then return to test the support. The discussion also covers how market moves are rarely straight lines, often including pullbacks and congestion before continuing a trend. Attempts to reverse the primary upward trend are examined in the context of timing, demonstrating typical market behavior during trend continuation.
09:15
Session crossover and market manipulation
09:15
The speaker discusses the London session crossover, highlighting it as a prime time for institutions and banks to manipulate trades. They emphasize the importance of looking past the initial volatility of the London open to understand market levels. The focus is on using Renko charts, which are non-time-based, and the plan includes dedicating a session to studying these types of charts in detail.
09:49
Renko chart benefits for trading
09:49
The speaker explains how Renko charts offer valuable insights into market trends, congestion phases, breakout trading, and reversals. They emphasize that beyond signaling potential trade entries and exits, Renko charts are particularly effective at helping traders stay in a trade. The discussion concludes by observing a price movement breaking through the R3 level on a 10-minute chart.
10:20
Level breakthrough and market pause
10:20
The speaker explains that market levels can fluctuate and sometimes revert, indicating this is a normal pattern. They observe the pound rising while the dollar falls and suggest that patience is required in this situation.
By Anna Coulling – creator of volume price analysis
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