@kronie,

Not sure If I understand the question as you intended. But here is my understanding of trading Renko type bars:

Unirenko or Renko type bars in general are a kind of volatility bars. Their size determine a volatility range which I think if reached there will be a breakout in that direction. One determines the bar size based on a volatility that matches one's risk comfort. If 20 tick risk is too much risk, then perhaps something smaller, but targets need to be smaller too. Therefore, it does not make sense to wait for so many bars to enter a trade after the breakout has already occurred.

Case in example; CL tends to move in ranges of 10 ticks. So, a UniRenko of the size 10 or 20 makes sense. The entry will be one tick above or below the close of the bar, simple. Otherwise if one waits and enters after so many bars, each additional bar is another 10 ticks. After 3 bars CL has already moved 30 ticks. Do you really want to enter a position there? That is three times the size of the volatility and the swing move is usually exhausted by then.

All said, I find 20 ticks move in CL (size 20) will more often result in a continuation to over 50 ticks than smaller bar size. A 10 tick size is more prone to whipsaw. But, regardless of the size, the best is to enter right after the close of the signal bar. Otherwise, the volatility range basis for selecting the bar size is totally ignored.

CHEERS!

@kronie,

Not sure If I understand the question as you intended. But here is my understanding of trading Renko type bars:

Unirenko or Renko type bars in general are a kind of volatility bars. Their size determine a volatility range which I think if reached there will be a breakout in that direction. One determines the bar size based on a volatility that matches one's risk comfort. If 20 tick risk is too much risk, then perhaps something smaller, but targets need to be smaller too. Therefore, it does not make sense to wait for so many bars to enter a trade after the breakout has already occurred.

Case in example; CL tends to move in ranges of 10 ticks. So, a UniRenko of the size 10 or 20 makes sense. The entry will be one tick above or below the close of the bar, simple. Otherwise if one waits and enters after so many bars, each additional bar is another 10 ticks. After 3 bars CL has already moved 30 ticks. Do you really want to enter a position there? That is three times the size of the volatility and the swing move is usually exhausted by then.

All said, I find 20 ticks move in CL (size 20) will more often result in a continuation to over 50 ticks than smaller bar size. A 10 tick size is more prone to whipsaw. But, regardless of the size, the best is to enter right after the close of the signal bar. Otherwise, the volatility range basis for selecting the bar size is totally ignored.

CHEERS!

@aligator:
In UniRenko bar type , as I understand the volatility range is defined by the parameter 'R' (say, 10 Ticks). Once the bar breakout, meaning after the reversal bar breakout, every additional bar is determined by the parameter 'T' (say, 1 Tick) . So every additional bar after breakout is 1 tick and not 10 ticks as you mentioned above.

..., could you please explain to me what exactly O2 or whatever number means? ...

@aligator:
In UniRenko bar type , as I understand the volatility range is defined by the parameter 'R' (say, 10 Ticks). Once the bar breakout, meaning after the reversal bar breakout, every additional bar is determined by the parameter 'T' (say, 1 Tick) . So every additional bar after breakout is 1 tick and not 10 ticks as you mentioned above.

could you please explain to me what exactly O2 or whatever number means?

To begin with, remember that the "open" of a unirenko bar is fictitious. You can make that open anything you want by changing the O parameter.

@monpere refers to it as the offset, the number of ticks by which the open of a new bar displays inside the body of the previous bar. The minimum setting is 1, so at the least the open must display 1 tick inside the close of the previous bar. You could also think of O as shorthand for overlap (of the previous bar's body by the new bar's body)

Some here like the O1 appearance, while others like the overlap more closely approach the midpoint of its predecessor. I like O1 because it increases the likelihood of a wick projecting out of the Open end of the candle body, showing me an actual price rather than the made up Open.

Note that things can get weird (to me, at least) when the O value is "too high" -- e.g. T1R1O4. In cases like this the reversal candle will print the same color as the last trend candle, and its Close will be inside the body of that last trend rather than beyond it in the trend direction.

Hope this helps.

dwt51

Note that things can get weird (to me, at least) when the O value is "too high" -- e.g. T1R1O4. In cases like this the reversal candle will print the same color as the last trend candle, and its Close will be inside the body of that last trend rather than beyond it in the trend direction.

dwt51