12# Renko Reversal Edge

Joy22 and JanusTrader 2025

Refernce: Indicators author, Mladen Rakic Forex-Station.com

Renko Reversal Edge a high-probability reversal- trend strategy using renko Ccharts and TMA bands

What is Renko Reversal Edge?

Renko Reversal Edge is a precise reversal-trading framework designed to capture market corrections and reversals with high probability, using Renko charts, Triangular Moving Average (TMA) bands, and the Parabolic SAR indicator. I want to point out that the entry timing chosen is just an example, the focus is on the technique to look for areas of possible correction or reversal. This technique is also valid with other types of charts but with Renko and range charts it has better results and is easier to learn.

It’s built for traders who want to exploit price exhaustion zones — those moments when price stretches far from its average and tends to snap back.

This strategy combines:

The clean structure of Renko charts

Multiple layers of TMA Bands for dynamic zones of support/resistance

A non-repainting TMA band to avoid false signals

Parabolic SAR for entry confirmation

The Core Idea

Markets tend to move in waves. Even in strong trends, price often retraces or reverses temporarily. Renko Reversal Edge focuses on identifying these moments by detecting areas of compression and divergence between repainting and non-repainting TMA bands — creating visual “hot zones” for potential reversal setups.

Forex System Setup

Chart Type: Renko

Renko Box Size:

10 pips minimum for Forex

10.0 points minimum for indices like S&P500

Platform: MetaTrader 4

Markets: All instruments

Indicators Used

TMA-CG-mladen NRP :

Half Length: 56

Band Deviations: 2.0 / 2.1 / 2.2 / 2.3 / 3.0 / 3.8

TMA55

Half Length: 40

Band Deviations: 2.4

TMA CG MTF AA TT NRP (Non-Repaint):

Half Length: 24

Band Deviations: 3.0

Parabolic SAR: Step: 0.02 Maximum: 0.2 (with experience Step: 0.04 Maximum: 0.3)

Renko Builder

Entry Rules – Reversal Setup

Buy Setup:

The non-repainting TMA band crosses below the outermost TMA red band (with highest deviation).

Wait for a Parabolic SAR dot to appear below the current Renko box.

Sell Setup:

The non-repainting TMA band crosses above the outermost TMA red band (with highest deviation).

Wait for a Parabolic SAR dot to appear above the current Renko box.

Stop Loss

Previous swing high/low, depending on the direction of trade.

Important note: to enter as timing we have used the parabolic as an example. but they can be used in slower indicators such as the Supertrend, the tourtle channel or best of all the renko graphic patterns, but this is not the purpose of this video.

The best entries are when the box size is close to or inside the bands of the curve. The advice is to trade only on the best entries, because they have a high profitability.

Why It Works

The non-repainting band acts as a stable reference for price extremes

The crossing of repainting bands creates visual compression zones, marking potential turning points

The Parabolic SAR adds confirmation for safe entries

The strategy avoids premature trades by requiring alignment of all elements

Summary

Renko Reversal Edge is an elegant approach to countertrend trading that blends structure, precision, and visual clarity. Designed specifically for traders who thrive in mean-reversion environments, it delivers edge through smart band interaction and disciplined confirmation.

Whether you're a scalper or swing trader, this strategy provides a repeatable, rules-based method for entering the market when price is most likely to turn.