We’ve updated our charts to allow for Renko bars to be built not only on close, but also on OHLC (Open High Low Close).
How are Renko bars built, according to OHLC?
The bar has the open price (price at the market open) O. During bar formation, there is a magnitude of price fluctuations, now from mark O the bar is drawn from the body as it tracks price changes up or down.
Under the fluctuation, we can understand the difference between the highest (H) and the lowest (L) points of the H-L bar. As soon as H-L reaches the Box Size value, the bar’s body ceases to grow. Furthermore:
- If the price fluctuates within the segment [L,H], the closing mark of the C bar will change;
- If the price goes beyond the segment [L,H], close the bar and build a new one.
In order to change the calculation of Renko bars, you need to first change the Source field within your User Settings.
By default, the field is set to Close.
Thanks for reading about Renko charts and OHLC. We hope it’s helpful to all Renko chartists and let us know what you think.