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
RSI
by PRASHANT SHAH -
Relative Strength Index (RSI) Developed by J. Welles Wilder, Relative Strength Index (RSI) is perhaps the most popular and widely used of all indicators in technical analysis. It is possible to plot RSI on Renko charts. The formula for its calculation remains the same but the underlying logic differs. Below is the formula of calculating ... Read more
Bollinger Bands
by PRASHANT SHAH -
Bollinger Bands is a wonderful innovation by John Bollinger in the field of technical analysis. Bollinger bands are standard deviation bands calculated from a moving average. Since we can plot moving averages on Renko charts, it is also possible to plot Bollinger bands alongside. If we plot 20-brick average with two standard deviation Bollinger bands ... Read more
MACD
by PRASHANT SHAH -
MACD is a popular indicator which was created by Gerald Appel in the late 1970s. It is a momentum indicator that calculates the difference between two moving averages. The MACD line is calculated by subtracting the longer term average from the shorter term average. An average line of MACD line is, in turn, known as ... Read more
