there is defnitely value in it but also doing a cross check there are things I dont get:
Example 1: in jun09 the top and the bottom of the Renko candle do match the exact top and bottom at the time.
Example 2: just recently the bottom traded was 2040 but the renko candle shows 2066.
I now understand why it looks so good by removing extremes but how does it work really?
QUestions: 1 what is happening? 2 how does it work?
so i can make sense of it.
Comments
Wolf
⋅
In Renko charts, the gap should be below the block size. Because the gap appears when the block didn't reach the pips enough to create it. Lets say each block needs 20 pips, and a block just closed bullish at price 2080, but the high only reached 2095, unable to complete the 20 block needing 5 more.
However, sometimes I have seen the gap higher than the block size. This must be an error probably.
YaKa
⋅
yes - exactly... thought about it - you are right- thanks that is correct.
pezq
⋅
Hi Yaka I found renko moderately useful. At least the TV version. You will find I think that it's rather difficult to make a "10 pip" Renko Bar here so you have to use the ATR version. There are some issues with Renko as well which have been discussed in the forums. However I do find this version to be very good. It's Chris Moody's Renko overlay bars which gives you the best of both worlds. The url to this chart is
tradingview.com/chart/Hm9p5BS8/ if you want to copy the code
YaKa
⋅
Thank you. need to play with it but i think i got how the renko bars are structured and how to apprehend them.... Take away: in a trend, the stop should be 4 ATR below the current top:)
However, sometimes I have seen the gap higher than the block size. This must be an error probably.