Hey traders! Today, let’s dive into a winning strategy that combines the Renko Line Break with the RSI EA on MetaTrader 5. The concept is straightforward: the Renko Line Break helps you spot the trend's direction, and during a pullback, you can set stop orders based on the RSI signals. Here’s how it works:
- The Renko Line Break indicates you're in an uptrend.
- When the RSI dips into the oversold territory, place a buy stop just above the highest point of the bar. Set your stop loss a few pips below the lowest low of the last three bars, and determine your take profit based on your trading parameters.
- If your order doesn’t trigger and RSI remains in the oversold zone on the next bar, go ahead and delete the previous order and set a new one.
- If your buy stop is activated, be ready to close your position either via stop loss, a trend reversal identified by the Renko Line Break, a take profit hit, or if the RSI enters the overbought zone.
- If the buy stop doesn’t trigger and the Renko Line Break shows a trend change, simply delete the order.
Setting It Up:
- Download the Renko Line Break indicator and place it in the MetaTrader 5\MQL5\Indicators folder.
- Download the EA file and save it to MetaTrader 5\MQL5\Experts.
Parameters You’ll Need:
- Min Box Size - This sets the minimum size of the Renko box.
- RSI Period - Define the period for the RSI.
- RSI Vertical Shift - This shifts the overbought/oversold boundaries. For example, if you set it to 20, the overbought area is above 70, and the oversold area is below 30. If it’s 30, overbought is above 80 and oversold is below 20.
- Take Profit - Specify your take profit value.
- Indent From High/Low - This sets the distance from the bar extremes for placing stop orders and stop losses.
- Volume - Define your position volume in lots.
Here’s a practical example using EURUSD on the H4 chart from January 2012 (check the attached files for details).
a) Example of trades:
b) Test chart:
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