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Renko

Renko charts - Clean out the noiseI recently attended a talk by Stephen Hoad on behalf of the STA for the CISI, where he discussed his use of Renko charts. Well, it piqued my interest and I decided to take a closer look myself. Renko charts were invented in Japan, they ignore time and just use price changes that meet a minimum requirement, which to my mind sounds exactly like Point & Figure charts (I love these). Instead of X-Columns and O-Columns, Renko charts use price “bricks” that represent a fixed price move. These bricks are sometimes referred to as “blocks” or “boxes.” They move up or down in 45-degree lines with one brick per vertical column. Bricks for upward price movements are one colour while bricks for falling price movements are filled in another colour. In the example attached I have a chart of the US Dollar Index, where upward price moves are green and downwards are red. This example uses a 0.5 brick size. Please note the irregular time span along the y-axis . Also note that it uses an average true range of 14 days. For an explanation of average true range (ATR) please follow this link school.stockcharts.com N.B when adding indicators say a 20-period moving average, this will be based on the last 20 Renko values NOT the last 20 days. I always think that these types of charts look optically ‘cleaner’ or clearer than the more typical bar chart. They completely ignore time, and a brick is only drawn if price moves by a set amount. If it moves less than the set amount, no brick is drawn. In contrast to fixed price bricks, using ATR values results in fluctuating brick sizes. The default ATR is based on 14 periods and the Average True Range fluctuates over time. The brick size is based on the ATR value at the time the chart is created. Should the ATR value change the next day, then this new ATR value will be used to set the brick size. Also note that ATR values are based on standard charts, such as close-only, bar and candlestick. Disclaimer: The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
ICEUS:DX1!Education
by The_STA
Bitcoin Renko-Chart - BTC in falling wedge but also bear flagBitcoin Renko-Chart - BTC in falling wedge but also bear flag The falling wedge more likely breaks out to the upside... the bear flag more likely to the downside. This overall Renko-Chart shows the history until 2015 and before we don't see a break through of the green trendline there is no reasons for concerns IMO - are you with me? Drop me a nice comment if you'd like me to analyze any other cryptocurrency. *not financial advice do your own research before investing
BITSTAMP:BTCUSDLong
by Crypto4Everybody
1
In which direction will the Kumo cloud breakout?Bitcoin has been in the range area for more than 3 months, and the prolongation of this period has tired analysts. During these three months, analysts have had differing views on where the breakout will take place. The movement in the swing zone should end gradually and we should see a bitcoin breakout. During this period, not even a confirmed spring or upthrust has been performed. Bitcoin is now inside the Kumo cloud (in Renko chart), respecting the support and resistance of the Kumo cloud. There seems to be nothing left until the Kumo cloud breakout. Now we have to wait and see In which direction will the Kumo cloud breakout?
BITSTAMP:BTCUSD
by cryptoonchain
1
BTCUSD 4hr renko 500 brick size- The Moku cloud is still conflicted between red and green, signaling market indecision. - The long wick to the top of the current brick shows that while we tried to rally above 40.5k, we couldn't hold it long enough to make a stand there. - We are still under the green cloud, which means bulls are not ready yet. - At the previous brick, we didn't manage to get above the 10 SMA, which would be another signal of an uptrend. - Lagging indicator in the cloud, which is a no touch zone. Note that the Renko chart is simple a trend indicator not a top/bottom finder, and it is telling us there is no clear trend yet.
COINBASE:BTCUSD
by tanreu
BTC USD 4hr Renko 500 brickThere are some signs that the trend is starting to reverse. Looking at the Moku cloud, the bottom of the cloud is starting to curl up. However, the top is starting to curl down, so that balances things out a bit. On the price line itself, the red bricks are still forming downwards, meaning the trend is still clearly negative. We are also below the 10SMA , which signals the trend is here to stay for now. Until the price reverses back above the 10SMA and green bricks start forming above the green area of the Moku cloud, I remain in my shorts.
BITSTAMP:BTCUSDShort
by tanreu