This bar type creates a new bar when price reverses by a pre-defined amount of ticks from the high/low of the bar. As soon as a new bar is created and price moves at least the amount of pre-defined ticks in one direction, the bar again, closes after a reversal of pre-defined ticks.
This is my implementation of a Universal Renko bar type. It allows the user to choose when the bar closes in the direction of the previous bar (Trend), and when it closes in the direction against the previous bar (Reversal).
This allows you to tailor the bar to behave specifically how you want it in ways that hopefully may enhance your particular trading style. As an example, if I am a reversal trader, entering on reversal bars, and putting my stop behind the entry bar, I can choose trend and reversal settings that minimize the size of reversal bars, and therefore optimize my stop sizes, etc.
Parameters are:
'Tick Trend' - Number of ticks to close the bar in the Trend direction
'Tick Reversal' - Number of ticks to close the bar in the Reversal direction
'Open Offset' - Number of ticks offset to draw the artificial open
Like most Renko bars, the bar open is artificial, and is placed by default halfway up the previous bar. The open is aesthetic only, it is not used in the bar size calculation. The tails on the bar show real prices. The artificial Open may affect your backtesting depending on the coding of your strategy. Internally uses NT PeriodType.Custom5
V2:
To support Muti TimeFrame indicators/strategies using the Add() method, added an alternative way to specify all bar specs in the 'Tick Trend' parameter. You can now alternatively specify each parameter as 3 digits in the Data Series window 'Tick Trend' parameter or Add() method 'Period' parameter. For example to specify TickTrend=4 , TickReversal=8, OpenOffset=2 or (T4R8O2) then specify: 'Tick Trend'=004008002 in Data Series window, or Add(PeriodType.custom5, 004008002);' in your MTF code. The normal way of specifying the parameters will continue to work as well.
January 18th, 2017 03:02 PM AABid Thank you for sharing. Your kindness is greatly appreciated. This bar type is the cornerstone of my trading as it help
s me to filter all the noise. I use setting of 1-5-1 for the emini.
August 23rd, 2016 01:59 PM Trading Noob Awesome Renko implementation!
March 14th, 2024 06:10 AM Leafcutter Although I downloaded this bar type years ago I never used it and didnīt realize the benefit that it provides
in terms of anticipation of the directional change...till a few months ago. In combination with the delta indicator tha
t shows the delta next to the developing bar this bartype changed a lot for me! IThe bar type would even be better if th
ere was a possibility to automatically and dynamically change the amount of delta that is necessary to form a new bar i.
e. in addiction to the change in total volume so that increasing volume means relational increasing the amount of delta
to form a new bar. I even would pay you for programming that.
July 18th, 2023 03:17 AM XDiavel Thank you very much!
December 31st, 2022 12:49 AM viviancpy
October 31st, 2022 02:35 PM sigmatrader Is there a "Delta Bar" thread that has discussion of the use of this bar and its associated Delta indicator?