Indicators on Renko
by PRASHANT SHAH -
There are numerous indicators that are plotted in bar and candlestick charts. All those indicators can equally be used on Renko charts. Technical indicators are calculated on raw price data. With Renko charts, the calculation is applied on Renko brick data and not on the OHLC data. Thus, while the formulae for calculating the indicators ... Read more
Volume on Renko
by PRASHANT SHAH -
Volume It is possible to plot volume too on Renko charts. There will be one volume bar for each brick date even if there are multiple bricks for that day. A new volume bar is plotted for a new date when the Renko brick date is changed. Below is a Renko chart of Arvind shown ... Read more
Moving Average
by PRASHANT SHAH -
Moving average is the most basic indicator that we use in all types of charts. It can be applied on Renko charts, too. A 20-day moving average on a bar or candlestick chart calculates the average of the latest prices, usually the closing price. Similarly, a moving average of the last 20 Renko chart bricks ... Read more
Brick Zone
by PRASHANT SHAH -
Bullish patterns can be traded when the brick count indicator is in a bullish zone while bearish patterns can be traded when it is in a bearish zone. For better visual appearance, the brick zone indicator is plotted by subtracting the number of bearish bricks from the number of bullish bricks. The formula for plotting ... Read more
Swing Line Indicator
by PRASHANT SHAH -
Swing breakout patterns are extremely useful for traders using the Renko charts.When price exceeds immediate previous swing high, it is called as a bullish swing breakout. When price falls below immediate previous swing low, it is called as a bearish swing breakout.The image displayed below captures the bullish and bearish swing breakouts.From a trading perspective, ... Read more
