Let’s be real trading can feel like a rollercoaster. But if you’re using Renko charts, you’ve already got an edge. Unlike regular candlestick charts that show every little market movement, Renko focuses purely on price action. This helps filter out the noise and makes spotting trends (and reversals) a whole lot easier.
Now, let’s talk about the real deal Renko reversals. These are moments where the price shifts direction after hitting a key level. If you catch them early, you can ride some seriously profitable trades. But how do you do that? Let’s break it down into five simple and effective ways to make money with Renko reversals in Forex.
1. Spot Reversals at Key Support & Resistance Levels
This is trading 101, but it’s even more powerful with Renko. The idea is simple when price hits a strong support or resistance level, there’s a good chance it’ll bounce.
How do you know if a reversal is happening? Look for classic patterns like:
- ✔ Double tops (market hits a high twice and drops)
- ✔ Double bottoms (market touches a low twice and bounces)
- ✔ Engulfing candles (a strong candle that completely “engulfs” the previous one)
When you see any of these patterns forming near a strong price level, that’s your cue. Enter the trade, set your stop loss wisely, and let the market do its thing.
2. Wait for Confirmation Don’t Jump the Gun
I know, I know. It’s tempting to enter a trade the second you see a reversal forming. But here’s the deal patience pays.
A good reversal trade needs confirmation. Let’s say you see the market dropping, then suddenly, a bullish Renko brick forms. Don’t just jump in. Wait for:
- ✔ A second brick to confirm the direction
- ✔ A breakout of a nearby trendline
- ✔ Additional confirmation from indicators (like RSI or MACD)
This way, you avoid false reversals and only take trades when the odds are actually in your favor.
3. Swing Trade with Renko Reversals
If you’re not a fan of staring at charts all day (who is?), then swing trading Renko reversals might be your thing. This means holding your trades for a few days or even weeks to catch bigger market moves.
Here’s how it works:
- ✔ Use higher timeframes (like the 4-hour or daily chart)
- ✔ Look for clear Renko reversals (price hitting a strong level and bouncing)
- ✔ Enter when the trend is confirmed and let the trade run
The beauty of swing trading is that you don’t have to micromanage your trades. Set your stop loss, place your target, and let the market do its thing.
4. Don’t Overcomplicate It Stick to Simple Patterns
Some traders drown themselves in a sea of indicators, trend lines, and complex strategies. But here’s the truth the simpler, the better.
Renko reversals work best when you stick to a few simple patterns:
- ✔ Engulfing candles – Signal strong momentum shifts
- ✔ Double tops & bottoms – Indicate a potential reversal
- ✔ Breakout retests – The market breaks a level, comes back to test it, and then takes off
You don’t need 10 indicators on your chart. Just focus on price action, keep your trading plan clean, and trust the process.
5. Trade with a Strategy, Not Emotion
You’ve probably been there you enter a trade, price moves against you, and suddenly, emotions take over. You close the trade early… and then the market goes exactly where you thought it would.
Sound familiar? That’s why having a solid strategy is everything.
Here’s what you need:
- ✔ A clear entry rule (e.g., enter after two confirmation bricks)
- ✔ A defined stop loss (so one bad trade doesn’t wipe you out)
- ✔ A profit target (so you don’t get greedy and give back gains)
If you stick to these rules, you’ll trade with confidence instead of emotions. And trust me, that’s a game-changer.
Final Thoughts: Keep It Simple & Profitable
Renko reversals are one of the easiest and most effective ways to trade Forex. If you master spotting them at key levels, wait for confirmation, and keep things simple, you’ll already be ahead of most traders.
Most importantly be patient, follow your strategy, and trade smart. The market isn’t going anywhere, so take your time and trade with confidence.
Happy trading! 🚀