Name: KT Renko Patterns
Rating: 5.00 (1 reviews)

KT Renko Patterns indicator scans the Renko chart brick by brick to find some famous chart patterns that are frequently used by traders across the various financial markets.

Compared to the time-based charts, patterns based trading is easier and more evident on Renko charts due to their uncluttered appearance.

KT Renko Patterns indicator features multiple Renko patterns, and many of these patterns are extensively explained in the book titled Profitable Trading with Renko Charts by Prashant Shah.

Features

Identify and trade up to eight crystal clear Renko patterns without any ambiguity.
To offer the complete objectivity, Stop-loss and Fibo targets are provided with each pattern.
KT Renko Patterns indicator continuously measures the accuracy of each pattern and display vital statistics on the chart.
Renko brick reversals are marked, and alerts are provided for the same, which helps to plan the premature exits in case of a sudden reversal.
The identified patterns never repaint or redrawn.

Included Patterns
W - M Pattern
Power Pennant
AB=CD
Triple Top/Triple Bottom
Double Top/Double Bottom
Two-Back Strike
ZigZag Bricks
Swing Breakout

Optimizing the Signals Accuracy

KT Renko Patterns indicator shows multiple patterns, but not every pattern may be suitable for a symbol. You can quickly improve the accuracy of the signals by following the simple steps:

Make sure each pattern is set to True.
Choose a "Success Rate Criterion" (we recommend the second TP).
Turn-off each pattern one by one and monitor the success rate percentage.
If turning off a particular pattern improves the success rate, keep it off.
If turning off a particular pattern worsen the success rate, set it to True again.
Adjust the value of "Min. Bars Between Patterns" between 20 to 100.

Increasing the value of "bars distance" between the patterns will usually improve the success rate. However, a high value will significantly decrease the number of signals, so a balanced value between 20 to 100 must be selected.

How to get Renko Charts on MT4/MT5

Creating Renko charts on MT4/MT5 is an easy and straightforward process. We have covered the required steps in our blog article - How to Trade using Renko on Metatrader 4/5.

Input Parameters

Min. Bars Between Patterns: The minimum number of bars between each pattern. It can help to improve the accuracy of the signals.
Mark the Brick Reversal: It marks the Renko brick reversals on the chart.
Alerts for Brick Reversal: If true, it generates alerts at each brick reversal.
Draw Pattern Names: Draw the pattern name of each signal.
Performance Analysis: The indicator measures its performance and shows the essential metrics.
Success Rate Criterion: The benchmark to measure the success rate of the signals.

Patterns Identified by KT Renko Patterns Indicator

1. W-M Patterns

W pattern indicates a bullish price reversal. It usually occurs when a downtrend end with a double-bottom formation. A buy trade is placed at the break of the neckline.

M pattern indicates a bearish price reversal. It usually occurs when an uptrend ends with a double-top formation. A sell trade is placed at the break of the neckline.

2. Power Pennant Pattern

A pennant formation is a trend continuation pattern with a significant price movement in one direction, followed by a period of consolidation with converging trend-lines.

3. AB=CD Pattern

The ABCD formation is a reversal pattern that consists of two equivalent price legs with a notable retracement between the price swings.

4. Triple-Top / Triple-Bottom

Triple-Top: A Triple-Top pattern is a bearish reversal that consists of three equivalent highs. On a Renko chart, a sell trade can be placed on the first opposite brick after completing the third consecutive high.

Triple-Bottom: A Triple-Bottom pattern is a bullish reversal that consists of three equivalent lows. On a Renko chart, a buy trade can be placed on the first opposite brick after completing the third consecutive low.

5. Double-Top / Double-Bottom

Double-Bottom: A Double-Bottom is a bullish reversal pattern that consists of two consecutive lows. On a Renko chart, a buy trade can be placed on the first opposite brick after the completion of the second successive low.

Double-Top: A Double-Top is a bearish reversal pattern that consists of two consecutive highs. On a Renko chart, a sell trade can be placed on the first opposite brick after the completion of the second successive high.

6. Two Back Strike Pattern

Two back strike is a trend continuation pattern that occurs after a small correction of two Renko bricks. It offers a low-risk entry opportunity that can be exploited to ride the ongoing trend.

Bullish Pattern: Streak of bullish bricks + small correction of two opposite bricks + streaks of bullish bricks.

Bearish Pattern: Streak of bearish bricks + small correction of two opposite bricks + streak of bearish bricks.

7. ZigZag Pattern

Zigzag is a Renko pattern that consists of indecisiveness Renko bricks followed by a breakout in either direction.

Bullish Zigzag: A series of five alternating color bricks followed by two bullish bricks.

Bearish Zigzag: A series of five alternating color bricks followed by two bearish bricks.

8. Swing Breakout

Bullish Swing Breakout: When a Renko brick close above the swing high(series of bullish Renko bricks) after a small price correction.

Bearish Swing Breakout: When a Renko brick close below the swing low(series of bearish Renko bricks) after a small price correction.

Do you have any other patterns in mind that can provide leading signals on Renko Charts? Let us know via a support-ticket. We will do our best to incorporate it into the next version.

Developers can use the following code to import the KT Renko Patterns indicator in an expert advisor.

 

// MQL4:

// declare the constants

#define w_pattern_code 1825
#define m_pattern_code 1826
#define bullish_pennant_code 1827
#define bearish_pennant_code 1828
#define bullish_abcd_code 1829
#define bearish_abcd_code 1830
#define triple_top_code 1831
#define triple_bottom_code 1832
#define double_top_code 1833
#define double_bottom_code 1834
#define bullish_two_back_code 1835
#define bearish_two_back_code 1836
#define bullish_zigzag_code 1837
#define bearish_zigzag_code 1838
#define bullish_swing_code 1839
#define bearish_swing_code 1840

double Fetch_Pattern_Code = iCustom(Symbol(),0,"KT Renko Patterns",4,1);

if(Fetch_Pattern_Code==w_pattern_code){;} // Do something, W pattern detected

if(Fetch_Pattern_Code==m_pattern_code){;} // Do something, M pattern detected

if(Fetch_Pattern_Code==bullish_pennant_code){;} // Do something, Bullish Pennant detected

if(Fetch_Pattern_Code==bearish_pennant_code){;} // Do something, Bearish Pennant detected

if(Fetch_Pattern_Code==bullish_abcd_code){;} // Do something, Bullish ABCD detected

if(Fetch_Pattern_Code==bearish_abcd_code){;} // Do something, Bearish ABCD detected

if(Fetch_Pattern_Code==triple_top_code){;} // Do something, Tripple-Top detected

if(Fetch_Pattern_Code==triple_bottom_code){;} // Do something, Tripple-Bottom detected

if(Fetch_Pattern_Code==double_top_code){;} // Do something, Double-Top detected

if(Fetch_Pattern_Code==double_bottom_code){;} // Do something, Double-Bottom detected

if(Fetch_Pattern_Code==bullish_two_back_code){;} // Do something, Bullish Two-Back detected

if(Fetch_Pattern_Code==bearish_two_back_code){;} // Do something, Bearish Two-Back detected

if(Fetch_Pattern_Code==bullish_zigzag_code){;} // Do something, Bullish ZigZag detected

if(Fetch_Pattern_Code==bearish_zigzag_code){;} // Do something, Bearish ZigZag detected

if(Fetch_Pattern_Code==bullish_swing_code){;} // Do something, Bullish Swing Breakout detected

if(Fetch_Pattern_Code==bearish_swing_code){;} // Do something, Bearish Swing Breakout detected

// fetching the stop-loss and fibo targets from the chart

double SL = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsSL",OBJPROP_PRICE),Digits);
double fibo_target1 = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsFTP",OBJPROP_PRICE),Digits);
double fibo_target2 = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsSTP",OBJPROP_PRICE),Digits);
double fibo_target3 = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsTTP",OBJPROP_PRICE),Digits);



// MQL5:


// declare the constants

#define w_pattern_code 1825
#define m_pattern_code 1826
#define bullish_pennant_code 1827
#define bearish_pennant_code 1828
#define bullish_abcd_code 1829
#define bearish_abcd_code 1830
#define triple_top_code 1831
#define triple_bottom_code 1832
#define double_top_code 1833
#define double_bottom_code 1834
#define bullish_two_back_code 1835
#define bearish_two_back_code 1836
#define bullish_zigzag_code 1837
#define bearish_zigzag_code 1838
#define bullish_swing_code 1839
#define bearish_swing_code 1840

// define indicator's handle
int KT_Renko_Patterns_handle = iCustom(Symbol(),0,"KT Renko Patterns");

// define array
double Fetch_Pattern_Code[];

// Copy the buffer into array
CopyBuffer(KT_Renko_Patterns_handle,4,1,1,Fetch_Pattern_Code);


if(Fetch_Pattern_Code==w_pattern_code){;} // Do something, W pattern detected

if(Fetch_Pattern_Code==m_pattern_code){;} // Do something, M pattern detected

if(Fetch_Pattern_Code==bullish_pennant_code){;} // Do something, Bullish Pennant detected

if(Fetch_Pattern_Code==bearish_pennant_code){;} // Do something, Bearish Pennant detected

if(Fetch_Pattern_Code==bullish_abcd_code){;} // Do something, Bullish ABCD detected

if(Fetch_Pattern_Code==bearish_abcd_code){;} // Do something, Bearish ABCD detected

if(Fetch_Pattern_Code==triple_top_code){;} // Do something, Tripple-Top detected

if(Fetch_Pattern_Code==triple_bottom_code){;} // Do something, Tripple-Bottom detected

if(Fetch_Pattern_Code==double_top_code){;} // Do something, Double-Top detected

if(Fetch_Pattern_Code==double_bottom_code){;} // Do something, Double-Bottom detected

if(Fetch_Pattern_Code==bullish_two_back_code){;} // Do something, Bullish Two-Back detected

if(Fetch_Pattern_Code==bearish_two_back_code){;} // Do something, Bearish Two-Back detected

if(Fetch_Pattern_Code==bullish_zigzag_code){;} // Do something, Bullish ZigZag detected

if(Fetch_Pattern_Code==bearish_zigzag_code){;} // Do something, Bearish ZigZag detected

if(Fetch_Pattern_Code==bullish_swing_code){;} // Do something, Bullish Swing Breakout detected

if(Fetch_Pattern_Code==bearish_swing_code){;} // Do something, Bearish Swing Breakout detected

// fetching the stop-loss and fibo targets from the chart

double SL = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsSL",OBJPROP_PRICE),Digits);
double fibo_target1 = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsFTP",OBJPROP_PRICE),Digits);
double fibo_target2 = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsSTP",OBJPROP_PRICE),Digits);
double fibo_target3 = NormalizeDouble(ObjectGetDouble(0,"KT_Renko_PatternsTTP",OBJPROP_PRICE),Digits);

Release date:	August 7, 2020
Last updated:	August 17, 2020
Current version:	1.2
Product type:	Indicator
Requirements:	MT4 \| MT5