MT4-Indicator: Adjustable Shift Renko Chart Builder Indicator

Is there an explanation of what a Shifted Renko is? I know what Renko bars are, but what does shifted renko bar mean. I tried looking on RENKO system with Mihailo, but had no luck.

I alkso dont understand StartingPrice = whole number? what does this mean we start with the next whole number?

Just trying to understand to see if this sytem will work for me. Many thanks, looks good so far.

Hi Dr, please forgive me if i can't give you clear explanation because of my lack of English..

As you know standard renko chart builder tools, create new brick/bar if price move in one direction higher or lower from previous brick with brick size incremental, so, 5 point brick standard renko will create new bullish brick after price move 5 point above previous brick if the previous brick in bullish form and need move 10 point from that close point to the south (bearish )to form new bearish brick.

in Shifted renko, when price traveling to north or south of previous brick (bullish or bearish) the builder create new brick with percentage step from the size of brick. so with 5 point brick size and shifted 20%, every 1 point the builder will create new brick no matter the direction..

Why Shifted, that is our effort to get more 'smooth' visualization more 'quick' brick forming and also easier to see the 'angle' of the wave/trend and try to eliminate inside brick movement that happen on standard renko with big size brick.

About the 'starting price', this is like 'anchor' point for the chart builder to start counting the range/brick size, this 'starting price' anchor, need to eliminate the problem with standard renko chart (in MT4) that sometimes showing different form every time you reload the chart, because the way of its calculation that keep changing when new candle in M1 feeder chart coming. and different data size of M1 feeder chart (total bars) will give you different shape even if you use same brick size at same pair. This is just like H4 Time Frame from different GMT time broker. that will give you different candle shape according to the start time of new H4 candle.

So, with setting 'starting price' in shifted renko chart, we will get same shape/brick formation, and why whole number, well this is only for easy counting/dividing the price range. for example if we put renko chart builder in M1 EU and we set starting point at 1.3000 with 10 point brick size, you will see that the builder 'slash' the price range in round numbers and this will helpful to visually marking the consolidation area, S/R, S/D, Fib Level etc.. that mostly appear near the round number.

Well in general that is what i can explain.. once again i'm sorry if can't give you 'clear' understanding....
hope it help
best regards..

This Example taken from EU with same area (grey rectangle at background), u can compare the shape and detail of every type of renko

STANDARD RENKO CHART 10 point brick shifted 100%



SHIFTED RENKO CHART 10 point brick shifted 50% (MEDIAN / MEAN RENKO CHART)



SHIFTED RENKO CHART 10 point brick shifted 25% (ANGULAR RENKO CHART)



SHIFTED RENKO CHART 10 point brick shifted 12.5% (GEOMETRICAL RENKO CHART)




next..... ???

Brilliant explaination - I already knew about the shifted Renko but not really the starting price - very clear now so many thanks and have a great weekend.

next..... ???

according to your chart it looks like the pair is headed south.

Your English is perfect, I understand every bit of it, and thank you for taking the time to share and explain your method. All I can say is WOW for your awesome explanation!!!

Okay your charts looks great, and trust me I will take time to learn this and master this just need to fully understand this.

A few questions:

1. So the builder will create a new brick every 4 pips on a 16 pip renko shifted at 25%.
That means the builder will only build a new brick when it is 4 pips north or south of the previous brick, correct? It does not matter if it goes south or north, it will build a new brick. If that is true than how is this different from a range bar? I know it's obviously different, because of the look of it.

2. What would the difference be between a 10 pip renko at 50% shifted, a 20 pip at 20% shifted and a 50 pip at 10% shifted. I can look at the charts when I am out of the office, but all have a builder that will create a new brick every 5 pips. Just by the look of the charts it seems these will all be short term trades. Trying to see if we can get into longer term trades with these indicators.

3. How do you determine the "starting price"? I imagine if you pick 133.0 and I pick 130.0 on eur.usd, our charts will look different. Is there some sort of calculation for a number you pick? Maybe 300 pips north or south of current price, etc?

4. You stated the " MTH Renko Chart Builder Indi Ver 01.ex4 " is a indicator and not an EA. That means it goes in the indicator/experts folder. Can I test this method over the weekend, as I am in the office now. Or can I only load the indicator on a live chart? Does this indicator have to be dragged on to a M1 Chart, and then I open a M2 offline chart?

Sorry there isn't any explanation after searching the forums, and I only ask many questions because I fully want to understand how to use this. Many thanks.

1. So the builder will create a new brick every 4 pips on a 16 pip renko shifted at 25%. That means the builder will only build a new brick when it is 4 pips north or south of the previous brick, correct? It does not matter if it goes south or north, it will build a new brick. If that is true than how is this different from a range bar? I know it's obviously different, because of the look of it.




and 'Range Bar' from EU right now..



Renko brick size measure from Open to Close, and Range Bar size measure from High to Low, and in Range Bar when price change direction inside the boundary of previous bar High/Low then new bar will create no matter the size of the body of current bar (from open to close), Renko chart will stick to the size of the shifting percentage..


2. How do you determine the "starting price"? I imagine if you pick 133.0 and I pick 130.0 on eur.usd, our charts will look different. Is there some sort of calculation for a number you pick? Maybe 300 pips north or south of current price, etc?

Nearest major round number will be ok. For EJ example if I pick 133.0 as starting price and you pick 130.0 as starting price, as long as we select same size for our brick with round number like 10 point size, we will get same shape, and we will met at every round number increment. or if you pick 20 point size and I 25 point size then every 100 point we will met..

3. You stated the " MTH Renko Chart Builder Indi Ver 01.ex4 " is a indicator and not an EA. That means it goes in the indicator/experts folder. Can I test this method over the weekend, as I am in the office now. Or can I only load the indicator on a live chart? Does this indicator have to be dragged on to a M1 Chart, and then I open a M2 offline chart? Sorry there isn't any explanation after searching the forums, and I only ask many questions because I fully want to understand how to use this. Many thanks.

Yes, this is the advantage of Indicator type of renko chart builder compare to EA type or Script type. You can always create offline chart anytime even weekend, as long as your broker server connected to your MT4, just drag and drop to your feeder chart (standard M1 chart) with at least 2 month data bar.
After you set your parameter setting for the offline renko chart, then right click on your feeder chart and select refresh . check your journal tab for how many bar synchronize and also you can see your total bar by hovering your cursor at your feeder chart pair name tab.
Next, open your offline chart... and done.

Hope it help and best regards

Again great explanations Kiads.....Hey why this guy doesn't have any vouch yet?

Highest regards!

Kiads,

About starting price, we may have our charts look different if we have different starting point. Even with rounded starting point.

The solution would be to define the starting point automatically in the code at the nearest round number ... so we will all have the same starting point.

Just an idea ... not a request !

Thank You Sir, really appreciate your guidance.

Previously i also think to code auto routine for nearest round number, but later i decide to give freedom to user to input starting point manually (including myself ).
The reason is, sometime we need specific renko chart for our chart plotting (especially in geometrical trading) where we can start counting the renko brick for example from HH or LL or S/R level etc..

For general user who want discuss renko chart together , they can set same starting number and brick size to the purpose according their trading systems.

I hope i'm not explaining wrong and please always lead me to the light...

That makes perfect sense.

Really appreciate all the explanation Kiads! very helpful

Hi, Guys...
There is question from one of Senior member in this forum by PM, but i prefer to answer it here..

Q:
So, what exactly the different between standard candlestick chart and this shifted renko chart ?

A:
Basically, in technical aspect we switch the axis status of the chart, in Time Base chart like Candlestick chart, x-axis is time as constant (fix), and y-axis is price as variable (relative). in Price Base chart like this Renko, still x-axis is time but as variable (relative) and y-axis is price but as constant (fix).

In my personal opinion, when we use Time base chart actually we should trade 'time' not 'price', in the other side when we use Price base chart then we should trade 'price' and not 'time'. Now, the question is where our profit or loss came from ? is that came from the different value of 'time' or 'price' ?.

Q:
Can we use same Trend lines rule just like in standard candle chart to measure trend ?

A:
About the term 'trend' or angle direction of movement, first the question is 'what movement ?' time movement or price movement that we want to visually 'see' at our chart and take that visual information to our advantage in our trade ? the answer is clearly 'price movement' or 'price action' etc..etc whatever you name it.

In Time base chart, we know exactly how difficult to see the 'real' angle of trend of price movement.. why ? well, that because what you see is the angle of the 'time' and not the 'price' it self.

With this Price base chart, especially the Geometrical shifted Renko (12.5% shift), we can see that 'trend' of price movement is always in form of 45 degree for uptrend and 315 degree (360-45) for downtrend, and in this Price base chart, we don't have term 'retrace' or 'pullback' but only two term 'trend shift' or 'trend reverse'.

Q:
And why 12,5% shifted in Geometrical Renko, why not 10% or 5% that might give you more detail step visually ?

A:
Well as the name itself 'Geometrical' that in relation with shape and angle degree especially Triangle.
When we try to measure the angle of 'price range' between point A to point B in price movement let say 100 point long. we will say that is 100% and 50 point of it will be 50%. In term of angle our 100% is equal to 360 degree, so 12.5% (100%/8) is equal to 45 degree ( 360/8). So, with incremental step of 12.5% of price movement in our measured price range, we will 'see' the 45 degree angle for uptrend and 315 degree angle for downtrend.

In this MT4 charting, you can try to create it for example in EU with Renko Box size 8 point (the smallest size that still reliable for GeoRenko type) and shift percentage 12.5% (that mean 1 point stair step). Then open your EU offline chart . Open your offline chart property and in the common tab, change it to fix one to one chart. Try to measure the angle of the wave/trend, use TrendbyAngle line tool, you will get that ideal 45 or 315 degree angle, and no other angle..

From this point, you can easily use any geometrical tools for your geometrical trading strategy.

Once again thank you for the questions, and hopefully my answers not wrong.

Happy Trading and best regard.

PS: i hope this picture bellow will support my explanation..

SETTING YOUR INDICATORS for SHIFTED RENKO CHART

Ok, Guys this only general information about to set your Indicator in this type of renko chart.

Firstly, the most important and most confusing in indicator parameters is Period or nBar or Length or whatever the name is.. but basically is how many bar or candle that the indicators should calculate the price data for her specific averaging formula. Actually if you put hundred of indicators on your single chart, they only give you same information but in different 'how it look'.

For example the famous standard Moving Average with default period of 14 bars/candles or RSI with default period also 14 bars, could you give some logic explanation why 14 ? is there any cycle of price movement in every 14 bars and 14 of what ? minutes, Hours , Days, or Weeks ? lol... you don't get the answer right... or that 12.26.9 in MACD... do you know the ratio ? and why ? and when or where we can use it correctly ? so we don't get that famous 'false signal' lol.. there is no 'false signal', this is simply that your indicators calculation formula doesn't match with the input data feed. Why ? that is because you force to use same parameters for all market conditions..

In Time base chart like candlestick chart, the biggest difficulty is to recognize movement 'cycle' base on how many bars/candles and in which Time Frame ? or what is the best Time Frame ? Higher Time Frame for less noise maybe ? you don't have the correct answer right ?. You know why ? well, once again because you 'framing/slashing' the price movement by Time.. so you always get visually different shape according to your 'frame' when actually that just one same price movement. Remember that different broker GMT time will give you different shape of H4 Candles.. or give you different daily Open Close prices and of course will give you different pivot line price, and we will arguing each other which one is the right one.. lol.

All of that not only confusing you, but also confusing your indicators..

Now, back to this Price base chart.. is there any cycle of price movement that we can use for reference to determine our indicators period ? the answer is simply big yes...

The selection of period for your indicators in this price base chart like this shifted renko is simple exact calculation, its only base on how many 'step' the price movement need to turn from one bullish brick/bar to one bearish bar. So, for my example here using geoRenko with 8 point size brick and 12.5% shift/step. it will need 17 bricks/bars to turn.

Is that simple ? Yes.. let we see bellow example picture.



That is how we determine 1 turning cycle in shifted Georenko.

So lets use that simply 17 bricks period to our indicators.. in this example we use the standard Simple Moving Average.
we will use 3 SMA with 17 periods, SMA 17 Median (HL/2) (Blue Line), SMA 17 High (Red Line) and SMA 17 Low (Green Line)..
Just like bellow picture.



You can see that all of this SMA 17, showing consistency in their line flows because they get the 'right' data feed for their calculation formula.

You know that in MA parameters tab there is Level Tab, which almost useless in Time base chart environment.. but in this Price base chart this level will be important because it design for this.

Look at this picture of previous SMA 17 Median, High and Low , after I add level that match with this GeoRenko chart
You will notice if that levels always engulf the bricks movement..



Another example with BB HighLow 17 dev 1.5



Well, I hope all the explanations above will help you to set up your indicators with this shifted renko chart.

Happy Trading and Best Regards.

SETTING YOUR INDICATORS for SHIFTED RENKO CHART

Another examples for 8p Brick 12.5% shift Renko

RSI 17 median price (HL/2) and Stochastic K% 17 D%3 Slowing 8 Price:Low/High MA method Simple

Hello,
Thank you for all these explanations
I do not manage to run it with 4 pip renko
It appears and disparait immediately
You can help me please

With 3 pip, forgiveness

@costadelsol (http://www.forexfactory.com/costadelsol)
I dont think its possible couse 4/25% is 1 pip maybe it needs more than 1 pip to draw the boxes also i see from the above ss that you have loaded the indicator twice, hope that helps.

@Kiads Amezing job sir, just wow !!
Also one question, iv tried to use 1.3800 at EUR\USD for "starting price" but it changed back to 1.38 bug ? or im using it wrong ?

soon i will post/share my own templates

kind regards,
glaz

Hello my friend Costadelsol,

If i'm not wrong, you try to create renko chart with 3 point/pip and shifting only 5 % that mean 0.15 point per step that will be to difficult to obtain..

Please create at least 4 point size box renko with box shift 25% (1 point), with maxbar around 20000 bars, this is still can make your MT4 slowdown.
Ideally you can create 8 point renko with 12.5% shift, this also 1 point step) but more lighter for your MT4 resources as long as you limit the maxbar around 20000 to 30000 bars.

Btw, if you wanna create scalp trade system, you can create with 3 point size box renko, but with shifting 50% (median renko)...

hope it help and best regards.

Hi my friend Glaciall, for starting price, of course if you put round number like 1.38000 in parameter input will show up just 1.38 that is exactly same value with 1.38000, it is different if you select starting price let say 1.38001 then it will show up just like that.

we gladly waiting your template and explanation, thanks in advance.

Happy trading and best regards.

Okay great great explanation on everything Kiads. I am slowly studying everything you write. I ill re-read your latest post. Thank you very much for all the great info.

Okay below are my my 2 posted pics.

The first one is my M1 chart. This works great. Every pip when EUR/USD goes up or down, the bid price moves with it.

The problem is my M2 chart. It does not move on the bid price for every pip. Am I doing something wrong. M1 price is 1.3814 and M2 price is 1.3801. My settings are 16 pip renko shifted at 25%. I would think at the minimum the bid price would move at least every 4 pips? Please advise on what I should do? I thought a new candle would form every 4 pips.

Edit: Even 5 hours later, the price has not moved on my M2 chart. The offline chart is not getting the data from my M1 chart. There should be a reason.

kiads.... i like your sistem... best & powerful... trade with patience & Success..