Trading Renko

I modify this indicator to an alarm for each color change Renko

HI ,

I'd like to ask u if it can be possible to create an emultation as EA live chart 3.2 wich can open in off line one chart m2,M3,M4 in diffetent box size renko in same cross value ? if there is any programmer it can be able make something like this ?

if is not possible one chart important is in an on line chart to open 3 off line chart in different size.


it's possible to make something like this ?


David.

Hi guys,

Fellow Renko / Heiken Ashi fan here. What a great thread! I have really been enjoying reading through it. Lets keep up the positive vibe and info-sharing.

I am currently using the Renko / Heiken Ashi Strategy as described in GoldFlights thread. I love the simplicity and clear signals.

Have a great day!

Ezakimak

Any luck with this? It looks like nice clear signal.

Ezakimak

Hopefully someone here can answer a question for me.

I have the range bars setup to show wicks. Why is it that some of the wicks are longer than the range bar setting?

For instance I have my range bars set to 7 and I have an upper wick that may be 8 pips then a solid brick of 7 pips.

It is my understanding that if the set range has been reached or exceeded that the brick should print and begin a new.

Any help in understanding this annomally is appreciated

Trader V

Sounds like you are using the Renko script instead of Range script.

Sure enough that is definitely it. I couldnt' for the life of me figure out why it was happening but another fellow explained how the Renko bricks paint vs straight range bars.

Thanks for the reply!

Cheers!

Hi guys,

i've been reading this exciting post this week...
I must admit i now LOVE Renko charts.

It shows cleaner price action, avoids noise, and indicators put on them seem to work much better than on classic charts.

Todd, I have also quickly come to asking to myself "how often do these Renko boxes change direction, and how many consecutive boxes can we expect on average".

So... I wrote for myself a little script that will gather and display statistical information about consecutive candles.

Put that into your experts/scripts folder, compile it (or shutdown+restart mt4), then drag the script to the chart.


=====

The inputs are:

extern int BarsBack=0;
0 means it will use all the available bars on the chart
any other number is the number of bars back from present to take into account for the stats;

extern int RemoveAfter = 60;
number of seconds that the data will remain on the screen.
0 means forever (go to Objects List (ctrl+B) and delete objects starting with "sqConsecutiveCandlesStatistics" to remove them all)
The default is to display during 60 seconds, then gone!

extern string objPrefix = "sqConsecutiveCandlesStatistics";
that's how the objects are called in the ObjectList.

=====

What it does:

It displays 2 columns: UP and DOWN consecutive candles counts;
Each row is the count of UP/DOWN consecutive candles of the corresponding number of candles.

Here is an example from today on GBPJPY for 25bars Renko:




It will also "export" this information into the Terminal>Experts window, so you can get the full data by opening the log file.

Ok, the way the results are plotted is quite rough, but i did not take the time to plot nice histograms charts or sectors
Excel will definitely beat me on this!

=====

Quick results so far:

This gives quite interesting results:

You'll get very close results on Renko charts whatever pair or Renko bar size you use, UP and DOWN are also equivalent:

(rounded to integer % value):
1: 33% (meaning that there 1/3 chances that any next bar is in the opposite direction!)
2: 22%
3: 15%
4: 10%
5: 7%
6: 5%

So.... you have already 55% chance that price will reverse after 1 or 2 bars in a given direction.



It was initially designed for Renko charts, where bar reversal is easy to see, but it also works on regular charts -- it uses the open/close price to evaluate the bar direction.

On regular charts, it also gives very close results whatever pair/TF/direction you use, but different from the Renko results:

1: 50%
2: 25%
3: 14%
4: 7%
5: 4%
6: 2%

So that's now 70% chance that price will reverse after only 1 or 2 bars !

Here is an example on GBPJPY/M15 from 1999.10.01 till today:




An GBPJPY/M1 from 2007.12.19 till now:



=====

What can we conclude from this information ?

Still thinking about that part...

The first conclusion is the very constant pattern of the results over any pair and any Renko BosSize or regular chart TF.

We now need to find a way (if there is any) to take davantage of this information for trading...


Any idea Todd ?


Hope you'll find this script useful...

Sq

Hi Squalo

Its quite an innovative and interesting thought that you have brought.

Regards
ForexZAK

Agree, haven't tested it yet but looks like it could be useful in helping to scalp smaller renko brick sizes etc...

Hello Every1

To test and to be sure of the behavior of Renko on our indicators. I have been studying Renko for months and conducting tests on Demo, Offline, and on Live accounts.

My findings are that Renko is excellent to show you a neat and clean picture of Price Action when you initialize it and it creates the Renko Chart from the Data already in its history.

However, when it is running Live with DEMO or Live Account, and when the market volatility is high, it creates Bars slower than market movements. So if I am using a scalping technique to scalp 4-5 pips, with a Stop Loss of 10-15Pips, the results are unpredictable due to fast movement in the market and slow brick creation of Renko. I have tried both, Commercial Renko as well as EA/Indicators Renko Ver 3.2, with 5-Pips Renko Bar.

However, if I increase my TP and SL, it works better.

This is my findings, I may be wrong in interpreting something in it. Thought to share this on FF so as someone can help in identifying problem and helping me improve Renko Trading.

Regards

I have a question, appreciate if someone can help

While trading on Renko Chart, is Wick helpful to indicators to react or Wick is just a Visual tool for a Trader to see price movements.

forgive me for my ignorance, I thought to see expert comments.

apologies if this question has been asked before....but what are the differences/advantages/disadvantages between range bars and renko bars?

Thanks!

PGPB

I think it is personal choice which one to use but IMHO renko gives less noise when ploting the trend on the chart. CRB at the same time may give you a lot of noise but at the same time a lot less than regular bars.
But again it all comes down to the numbers - how big CRB or Renko bars one uses.
I trade renko and love it.

Regards

Kristjan

Lou,

I have a few questions about how you are trading.
You mentioned the bounce, retrace, breakout against SR.

1. Is "2 bars in one direction" still a primary trigger for you? That is as long as it either breaks out of, or bounces off of S/R?

2. Do you find that S/R off of renko bars (no wicks as with Fractal SR and Renko_SR_v2.0) is stronger than it would be if it included their wicks? Do you give things any more breathing room to compensate when considering non-fixed stops and price targets?

Thanks!

Hi.

Does somebody knows why the Renko cannot be displayed by 1 pip box? Could somebody modify it to display a 1 pip per box?

Regards.

Investopaedia definition:

Renko Bar - A new "brick" is formed once the price surpasses the top or bottom of the previuos "brick" by the specified amount.

Range Bar
Each range bar must have High & Low range that equals the specified range.
Each range bar must open outside high/low range of previous bar
Each range bar must close at either its high or low.

Both methods are offline charts and help to filter out noise as they are not time based bars, but in my opinion, the range bars are superior in that they give you momentum information, by where each bar closes. You can get doji's with range bars and the normal candlestick patterns, trendlines etc. can be used.

Best to plot both types of charts side by side during the times you are likely to trade and make up your own mind. Horses for Courses.

is there any way how to get a RANGE BARS to MT4? some indicator or EA?

thanks

1.Renko original
2.Renko original parallel
3.Renko real
4.Renko real parallel
I developed also methods of backtesting EAs on renko charts - if used with recorded ticks, as accurate as recorded ticks are.
Jake
[email protected]

Can you elaborate a bit on what these are and do?