An interesting trading system is created by an Egyptian trader on the basis of synthesis of two types of chart – candlestick and Renko. He called it the Extreme Analysis system, or rather the Extreme Analysis system. The candlestick chart is known to everyone, and Renko (brick in Japanese) is less known, although he is also from Japan and is just as old. The main difference between Renko and candlesticks is that this chart does not take into account the time factor, but reacts only to price changes. The new Renco brick is formed only after the price has passed a certain number of points. This makes it easier to determine the trend reversal. In the Ext system, the candlestick chart is used to determine the main direction, while the Renco chart is used for inputs onlyRenko’s schedule. It is not available in the Metatrader 4 terminal. Therefore, you need to install the indicator RenkoLiveChart_v3.2.ex4 or RenkoBarChart. At the bottom of the article you can download these indicators.These indicators require a non-standard timeframe M2 or M3 to work. For this purpose, the Period Converter script and the standalone chart are used. Metatrader’s certificate has all the instructionsTemplate with a set of indicators to determine the main direction. This includes 4 exponential moving averages with periods of 7, 14, 21 and 55, the Sapp for H1, H4 and D1 indicator, Heiken Asha candlesticks and the indicator of automatic setting of trend lines at the top and bottom points. When analyzing this chart is viewed on the timeframes H1, H4 and D. In the case of the presented chart, deals are opened only for sale. It’s very easy to determine the direction using this pattern. The entry points are determined by a different scheduleThis chart has another set of indicators. On the Ranko chart, the indicators work more accurately, as unnecessary noise is removed. The following conditions must be met for entry into the market:
- Renko MACD must be red and below zero line
- DSS should be red and below 80
- Nihilist Holy grail in orange or red
- Gann Hilo should be red
- The current price should be below the Doda Donchain middle line and below the Super trend line
- Forex strategist SR Resistance indicator indicator indicator should be formed
The signal to buy is determined in the same way, only the colors must be opposite and the price must be above the lines Doda Donchain and Super trend. It follows from the deal when one or two Renco candlesticks of the opposite color appear or when approaching the Super trend line. Stop Loss is set above the Doda Donchain middle line for shorts and below this line for longs.This system seems difficult to understand, but it’s easy to understand. The author uses the Ext system for intraday trading during the London session and at the beginning of the American session.Download indicatorsDownload templatesDownload Renko