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Time charts are the most widely used trading charts not only in terms of the MetaTrader4 trading platform, but it can be said that they are now part of almost every trading platform in the world.
However, time is not the only powerful and necessary indicator for chart price development. There are others, for example renko charts, which although not as widespread, on the other hand have several significant advantages over time charts that can make traders' daily trading very much better.
Renko chart - What is it?
It is a type of trading chart in which candles are formed based on range and not on time. In simple terms, the termination of one candle and the creation of another occurs only when the body of the current candle reaches a certain number of points in one direction. This factor makes price trends much smoother as many redundant candles are not formed, and also in the case of trend lines, there are no frequent unnecessary interventions during periods when the price is not moving much (on time charts, this period is called when the market is moving sideways).
Note: Even a renko chart can move sideways, just the number of candles is usually much lower.
In the above chart you can see the progress of one trade on the renko chart, where the entry S/R levels were drawn first and after the position was opened, it was necessary to wait for the first swing to draw the 1st trend line. Subsequently, the established trend accelerated and therefore the next swing redrew the trend line which was later broken by the market and the trade was closed.
Trend lines are generally speaking a very strong and accurate indicator already in the case of basic time charts. However, on the renko chart, as mentioned above, certain weaknesses of trend lines are eliminated, which makes it possible to achieve 5-10% higher success rates on these charts, which can result in a success rate of over 75%.
