Discussion about Renko : (from Varun's thread)

[extremist]

Ask About renko who actually used Ninjatrader. there i seen the most accurate code for renko.

http://www.innovative-trading-solutions-online.com/new/renkospectrum-charts/

 

[extremist]

I hope everybody here knows what renko is. though i try to explain it to all. if 'm wrong correct me.

 

[extremist]

Abv pic i tried to explain how candle forms from tick data.
A candle is most accepted form of chart type.
but you can see how much information we loose in it.
main thing i want to point out here is though we dont see tick data we see the candle ticking all the time till it's TF is filled. this is called as live data.
The next candle will start when the base tf is completed
there are some data providers who still provide 1min snapshot data. tht means you will be able to see the candle only when it is completed.
E.g. you will be able to see the first snapshot candle at 9:15:59 am

 

[extremist]

A tick is the smallest unit of time axis.
Every min has 60 sec. but no. of ticks per min always varies. some contain more than 60 some may have less than 60

 

[extremist]

Now coming to RENKO

 

[extremist]

For renko We predefine when the next candle should form.
REnko has two settings.

Brick size
Reverse

Brick size : by adjusting brick size you can adjust the range of the ranko bar. but what about when to reverse? if you are not having setting for reverse you might be missing something or i might be wrong.
Reverse : this setting allows user to set the amount of buffer range to original range set for the reversal of the renko candle.

 

[extremist]

in abv pic as we set box size to 5 it will limit tht candle to 5 only for all the time unless price crosses 5+3 or 5-3 no matter how much time it spend in tht range. so we loose tht plus 3 and minus 3 movement.
It has no actual connection to current price. even at point a it will show you the closing price at 5 .

now does tht sound ok?

when renko initially invented it has brick size only then reverse was added then now a days lot more things are added. we get wicks to renkos.

 

[extremist]

and this is what i was trying to tell all the time. As i used Ninja for 15 days with that RJ renko i was very amazed to see the charts. and those wicks on renkos kind of helping do analysis.

 

[extremist]

With the codes we have
1. we don't have live price.
2. we dont have wicks on renkos.
3. it reverses with random no. bricks at a time depending on brick size and reverse you have selected.
4. We dont have proper date axis for proper understanding of charts.

 

[extremist]

This is all i have to say on renko from my side.