Favorite Futures: Currently European and US equities
Posts: 432 since Dec 2013
Thanks: 221 given,
Sure. My bad I meant I weight a trend continuation with say 4 ticks (so the market must continue to move up 4 ticks to create a new brick) and for a reversal it must move 150 % in the opposite direction so 6 ticks. This filters / smooths things a little more. Then once it's reversed it only has to move 100% eg 4 ticks.
The following 2 users say Thank You to sands for this post:
Platform: Abacus, Slide Rule, HP-65, Metastock, TOS, NT
Favorite Futures: Futures
Posts: 3,424 since Aug 2010
Thanks: 1,053 given,
Forum Reputation: Legendary
Agree or not, there is nothing here to debate (quite respectfully). The wicks on uniRenko bars does NOT represent real price action in the direction opposite to the current bar's trend. While the wick size can be an indication of the market psychology and price action for Minute bars, that is not the case for UniRenko Bars.
A fair understanding of the construct of UniRenko bars would help to see the point. The wick for a UniRenko bar is man made and a product of how one chooses the size of the fictitious Offset. One can make the wick size smaller or larger based on the size chosen for the Offset, resulting in a fictitious wick that has no relevance to the psychology behind the bar formation and price action like a 5 minutes or 30 minutes bar does.
What matters here is only the high and low of the bar which make up the range of the bar, which is the range of the volatility assumed when the bar size was chosen. A bar range that shows larger than a trend bar implies either a reversal bar or an indication of a retracement inside the trend totally man made within the volatility range assumed, and that is not price action.
An Offset of "O = R " is real and will create a wick on only reversal which is the same size of a trend bar. See the screenshot. Can we argue there is no price action inside the trend (1-10-10) because there are no wicks? Or, too much price action inside the trend because there are wicks(1-10-1)?
The following 2 users say Thank You to aligator for this post:
I add to UniRenko bar type an option of offset = 0 ticks (previous close = current open)
To enable it, "Tick Open Offset" property must be 98, I guess no one is using such value
Technically it was easier to use value other than zero.
It can be imported and is using the same Custom5.
The following 30 users say Thank You to Erez for this post:
Are you sure that price did not retrace back to those price points of the wicks as you have illustrated on your first screenshot? I did a quick analysis of GC, using the same setting of 1:10:1 and then drew a line across the wicks, setting the property of the line to display on all charts.
I then opened a small range chart and a 30 second chart, and lo and behold, price did retrace back to where it was showing on the Unirenko chart. So unless I am missing something, I would have to agree with the DTW51, that the wicks of the Unirenko was real price action.
However, as you understand the construction of these bars far better than I will ever do, then you are probably right, and I have just wasted 30 minutes with my analysis. Nb, is this the same for the Better Renko bars also, as I use the wicks in my analysis when taking a trade with the Better Renko chart?