With this article I intend to continue the study of the renko chart that I started in my previous article (Renko charts on the Jforex platform) so that traders and operators can increasingly incorporate the use of this powerful price action tool into their daily lives.
In the previous article we learned how to put and configure renko on the Jforex platform and I put a basic strategy to understand its operation, its operational logic (bottom failure, top failure, price level breach). Understanding this logic is key to knowing how to operate a renko chart.
Now we will go further and deepen our studies and we will use some more advanced understandings for the use of more specific indicators and also the introduction of "Heikin Ashi smoothed" - That's why I call this setup "Renko Ashi".
2. Renko chart and Heikin ashi
To continue with the studies we will first make some definitions:
- "Heikin Ashi": are candles charts that have a different form of calculation for their formation, eliminating the noise of a normal candle in time.
HA_Close = (Open + High + Low + Close) / 4…