I have spent some time with SbS Renko lately. (Median Renko would be simpler to
understand, however the only programmer I know of that can do it isn't selling it.)
I have enclosed a screen shot that roonius (the programmer of SbS Renko) has
posted. Most of us know how to explain in laymans terms how a candlestick chart,
for example, is created. I can't figure out how a SbS is created though.
Shadows on some SbS Renkos are longer than entire SbS Renkos elsewhere, on the
same 10 tick chart.
The right image shows the right side of this chart (zoomed in). We can see some
SbS Reknos without shadows are shorter that other SbS Reknos, also without shadows
(at the top of the bull move). Yet this entire chart is a 10 tick chart.
The following 4 users say Thank You to stephenszpak for this post:
SbSRenko is build same way as regular Renko - it evaluates the price and ignores the time.
Rules for building any renko chart (or SBS Renko):
1. If last bar was "Green", the next bar will close as:
a. "Green" if next bar's close will be "X" ticks higher than Current Bars close.
b. "Red" if next bar's close will be (2 * "X") ticks lower than Current Bars close.
2. If last bar was "Red", the next bar will close as:
a. "Green" if next bar's close will be (2 * "X") ticks higher than Current Bars close.
b. "Red" if next bar's close will be "X" ticks lower than Current Bars close.
"X" - your brick size.
NT 6.5 (and unfortunately NT 7) does not allow you to change bars "Open" price after actually opening it, that's why SbS and MedianRenko workarounds were built.
NT 7 uses goofy workaround - they introduced method which allows you to remove last bar - in that case if you need to change open price - you have to remove last bar and then re-add it with different opening price - silly approach IMHO. Still better than nothing.
The following 15 users say Thank You to roonius for this post:
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
If you want to support our community, become an Elite Member.
The following user says Thank You to Big Mike for this post:
Thanks for keeping the topic alive Cunparis . I like sbs renko bars and found them useful . The thing I cant wrap my head around is what determines the end of a bar and why are some different sizes . I asked Roonius in the past about that and he replied that its based on ticks . If anyone can boil it down for me ( what determines the end of an sbs renko bar and why are some different sizes ) in detail Id appreciate it . Im sure others will appreciate the knowledge .
The fact that some are different sizes is what I find useful . They produce reversal patterns and inside/outside bars that are very distinct .
The following user says Thank You to Eric j for this post:
Let's say you have 3 tick bar like mine above. You open a bar at 100 after a green candle. Price moves up 2 ticks. If it moves up another 1 tick it'll close a new bar and you'll have 2 bars.
Let's say instead of going up another tick, it goes down 2 ticks. Now you're back at the open. Now it goes down 5 ticks. it won't close. if it goes down 1 more tick, that'd be down 6 and 6 = 3*2 so it'll close the bar and the bar is 8 ticks long.
So you can have a bar minimum of x ticks and maximum of 2*x + x-1 ticks. Using 3 ticks example: 2*3 + 3-1 = 6+2 = 8 ticks.
The following 4 users say Thank You to cunparis for this post: