I'm still struggling to find a definitive description of how the renko bars are calculated.
I've googled renko and there's lots of info on why people use them and half the stuff on Google refers me back to futures.io (formerly BMT). I've looked in here and there are discussions on why but not how they work. I can't find the answer anywhere.
1.Are Median Renko calculated differently to say Better Renko?
2.Last time I checked there was no unit of measurement (that I'm aware of) called a Renko, So why do you set your renko bars to maybe 4 or 6 even? They are not 4 or 6 ticks long, hours long, miles long, They don't weigh 4 kilos etc etc. Any way I think you get my idea
3.One of the users here is using them in a strategy successfullyand is able to predict where the bar will close, if certain conditions are met. How
If someone is aware of a link either here or elsewhere that will answer my questions I appreciate your help
Any renko is defferent, the classical Renko plots a bar every X ticks up or down from the high or low of the current one, ex. if u set a 7 tick renko it will plot a new up bar if price made 7 tick up from the prev renko bar high, viceversa for a down bar.
I think @aslan can spend some words about the various renko mods.
Renkos have a brick size that is used when displaying. The brick size is specified in number of ticks (i.e. a 5 renko has a brick size of 5 ticks). That size also specifies the distance from the open to the close of the renko bar. So when a renko is moving in the same direction, the next close will be the current close plus/minus the brick size. When reversing, the next close will be the current close plus/minus two times the brick size. This reversal behavior is how renkos remove noise and better visually show swings/trend.
There are a number of different renkos for Ninja, each born because of limitations on how Ninja implements the standard renko. The main difference between them is how the open of the bar gets set/displayed (you can see the Better Renko thread for more info on that type). The different types have the same basic goal of the standard renko though.
The following 9 users say Thank You to aslan for this post: