14# Renko Half-Trend Strategy

Maximo Trader 2025

This Renko-based trading strategy for MetaTrader 4 combines trend-following and momentum confirmation tools to identify high-probability entries in trending markets.
It uses Heikin Ashi candles, Half Trend, Ratis Stochastic, and the SS2009 indicators (B and C) to confirm entries and filter out false signals.
This setup works best on Renko charts with a 15-minute or higher reference timeframe and can be applied to any currency pair, especially XAUUSD (Gold).

Indicators Used

Heikin Ashi (default settings)
- Smooths out price action to highlight the trend direction.
Half Trend (period = 7)
- Plots a dynamic support/resistance line that changes color and direction based on the trend.
  
  Blue line = bullish trend, Red line = bearish trend.
Ratis Stochastic (13, 25, 2 – Close)
- A smoothed stochastic indicator for momentum confirmation.
  
  Used to detect overbought/oversold zones and crossovers.
SS2009 C (default settings)
- Histogram displaying momentum direction.
  
  Green bars = bullish pressure, Red bars = bearish pressure.
SS2009 B (default settings)
- A smoothed oscillator showing medium-term trend strength.
  
  Used as an additional confirmation filter.

Renko box size depends on the instrument’s volatility. Below are the recommended settings:

Instrument Box Size (Points) Notes

XAUUSD (Gold) minimum 130 ticks points Ideal balance between noise reduction and signal frequency

EURUSD 10–15 points Works well in moderate volatility

GBPUSD 15–20 points Slightly larger to filter false moves

USDJPY 8–10 points Tight range pairs require smaller boxes

US30 / Dow Jones 100–150 points For intraday trend detection

BTCUSD 150–200 points Due to high volatility

(Tip: Adjust slightly depending on volatility and spread.)

Trading Rules

Buy Setup

Half Trend line turns blue, indicating a bullish trend.
Heikin Ashi candles turn green, closing above the Half Trend line.
Ratis Stochastic:
- Green line crosses above the red line below level 50.
SS2009 C turns green (momentum confirmation).
SS2009 B histogram turns green and starts increasing.

Entry: On the close of the first green Heikin Ashi candle after all confirmations align.
Stop Loss: Below the most recent swing low or 2 Renko boxes below entry.
Take Profit:

Option 1: 1:2 risk/reward ratio.

Option 2: Exit when Half Trend turns red or SS2009 C flips to red.

Sell Setup

Half Trend line turns red, indicating a bearish trend.
Heikin Ashi candles turn red, closing below the Half Trend line.
Ratis Stochastic:
- Green line crosses below red line above level 50.
SS2009 C turns red.
SS2009 B histogram turns red and starts decreasing.

Entry: On the close of the first red Heikin Ashi candle after all confirmations align.
Stop Loss: Above the most recent swing high or 2 Renko boxes above entry.
Take Profit:

Option 1: 1:2 risk/reward ratio.

Option 2: Exit when Half Trend turns blue or SS2009 C flips to green.

Additional Tips

Avoid trading during low volatility periods or major news releases.

Use Renko charts generated by tick data (not time-based) for more accurate signals.

Combine with a higher timeframe trend filter (e.g., H1 or H4) for extra confirmation.

For XAUUSD, focus on London and New York sessions, where volatility is highest.

Conclusion

The Renko Half-Trend Strategy is a robust approach for trend-following traders who prefer clear, visually driven setups.
By using a confluence of Heikin Ashi candles, Half Trend direction, and the dual SS2009 momentum filters, traders can capture strong market swings with reduced noise.