What is a Renko Chart: http://www.traders.com/Documentation/FEEDbk_docs/Archive/082007/Abstracts_new/Duddella/duddella.html
From what I can see, a Renko chart is the same as a P/F chart except the REnko chart give each new point its own column, so the points are not stacked on top of each other. Now a range chart looks the same as a Renko expect there aren't any tails on the bars in a Renko chart and the bars don't overlap....so basically they're not the same . I don't know, now I got myself confused. King... a little help...
Range Bars and Renko Charts ===================== Renko Charts and Range Bars suppress noise and produce a uniformity in the underlying trend. Both in Renko/Range bars, the chart dependency on time-axis or X-axis is completely removed. They also help trader make far lesser decisions in a trading day than using regular bar-charts or Candlestick charts. For example, @ES could have 405 One-minute bars in a single day, but a One-Point @ES may have about 50-100 Renko Boxes which makes the decision process much easier. The Fewer boxes reduce the number of variables you need to consider for your trading decisions during the trading day. Renko charts are symmetric and produce excellent ways to detect Patterns, Trends, Support/Resistance areas etc. You can also apply all conventional indicators (MA, BBs, Keltner channels etc..) Both Renko/Range Charts have serious caveats traders should be aware of. Pl. see my articles On "Trading Range Bars" (June 2007) and "Trading Renko Charts" (Aug. 2007) in Stocks and Commodities Magazine, where lot more details are provided. Construction of Renko Boxes =================== Each Renko box has fixed size (1pt, 2pt, 5pt..) and only the "CLOSE" of the underlying chart (1m, 5m, 30m, Daily, Weekly ...) matters. Both the High and Low of the price are ignored. @ES closes at 1380 and if the Box size is 2pts, when a price closes above or equal on next bar(s) at 1382, the next Up Box (GREEN) is painted at 45 degrees angle from previous box. In Random noise trends no Boxes are painted until price closes above 1382. If price closes at 1385 from previous box Close at 1380, there will be TWO Green Boxes are painted. A Reversal (to the downside) from above criteria occurs if Price closes below or Equal to 1378 a RED brick is painted etc... Once the boxes are painted, they are not removed and next box is only drawn when price moves Up/Down by the box size. Construction of Range Bars ================== Range Bars are a unique way of building price-charts with each bar having the same constant range (High to Low) for the entire chart. These bars are continuously generated as a new tick is formed outside the minimum price-range. ** Every bar must have a Constant Range ** A new Range Bar is constructed when a tick closes outside of the Range ** The New Bar's Open Becomes the previous bar's Close (Little different in Momentum Bars) ** Each bar has its own time-period I trade Renko/Range Bars in TradeStation with few set of Indicators... Here is an example of Range and Renko Charts in TradeStation. Regards, Suri <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1808896" >
I have tradestation as well. I have renko bars in quotetracker. I think you can download it for free. You need another broker for real time quotes or use iq feed. this was discussed earlier somewhere on the thread. I don't know the answer to your first question. Renko is like point and figure where you decide the box and reversal size. Here are a couple charts, graphics suck on this laptop. You can set the reversal bars to profit targets and set stops outside the noise. No holy grail just another way to look at the tape. I know I am in the zone when all I want to see is time and sales. Good trading. http://stockcharts.com/school/doku.php?id=support:using_sharpcharts_po "Renko charts are always based on closing prices. You specify a "box size" which determines the minimum price change to display. To draw Renko bricks, today's close is compared with the high and low of the previous brick (white or black): If the closing price rises above the top of the previous brick by at least the box size, one or more white bricks are drawn in new columns. The height of the bricks is always equal to the box size. If the closing price falls below the bottom of the previous brick by at least the box size, one or more black bricks are drawn in new columns. Again, the height of the bricks is always equal to the box size. If prices move more than the box size, but not enough to create two bricks, only one brick is drawn. For example, in a two-unit Renko chart, if the prices move from 100 to 103, only one white brick is drawn from 100 to 102. The rest of the move, from 102 to 103, is not shown on the Renko chart. "
Thanks so much for feedback on Renco charts. Surinotes and Kinggyppo - your reply much appreciated. Any link for the magazine you mentioned? I would like to read your articles. I feel (nooby) Renco charts are great and makes trading a bit easier. QT provides renco charts and is free with IB data.
I also would like to thank all those who responded in quite good detail to my original questions about Renko and range bar charts. Suri - Can you explain how you get Renko charts to work on TS? Is there a download someplace to do this? Thanks again.
Hi sandygray66, TS does not have Renko/Range Bars natively. On the TS Forums, TS Admin say Range/Renko charts will be part of future releases... Part of a Larger project, I built X-Engine (A Pattern Recognition and Graphics Engine destined for Auto-Trading) which derives these Range, Renko, Kagi, 3PB and other Custom bar-types in TradeStation. It uses Managed Data/DLLs with built-in indicators/Strategies... One of other X-Engine application is TradeStation Chart simulations (Playback) of any Chart window with its Indicators, Time-frames etc. My X-Engine is still under development for the past few years and never been released. Regards, Suri
I admit I am intrigued when are you going to release it? To the other question, quote tracker is a nice program. I have found that the execution broker is not that important. (they are all the same in that they send your order to a matching engine). The bells and whistles have to do with charting, direct access, etc. I would recommend having two sources of data. Also you should have your broker on speed dial or # taped to computer. A lot of traders use quotetracker with ib feed. Good trading.
Please find attached a redacted channel log file from 2007-12-09 thru 2008-02-26. http://www.4shared.com/account/file...07-12-09_thru_2008-02-26_redacted_hk-001.html This is as far as I was able to get prior to leaving on vacation next week. I anticipated having completed the reference notes and trade/bus plan updates prior to Anek's return, however, as many of you are well aware... Anek maintained a continued presence and shared much information during his holidays and my focus was diverted... Please be advised that these logs have been severely reduced as I was focusing on pivots and advanced money management techniques... and some information may be lost... hopefully upon my return I will be able to post a comprehensive log file similar to the fine work provided by iluv a few weeks back... unless of course some one beats me to it Enjoy hwk