What’s the relevance of timeframe intervals (1 min, 3min, 5min etc) on renko charts as renko is time free but the chart appears different on different intervals, kindly explain why is it so?
Renko charts plots based on the box size we give, and renko’s are based on price action, so the timeframe may not be considered, But if you are increasing or decreasing the time frame the more data will get loaded with more number of days, so renko may slightly change with change in data.
Seems some bug in Renko Charts.
Charts should look same even if we change time frame. Also even if we change box size there is no change in chart.
Which price is used to draw the chart Ltp or Close of candles selected in time frame ?
I think you should use High or Low of the candles.
Pasting the response from another forum by another user "What I’m about to say is from my experience using Renko blocks with another platform. Not sure how this is relevant to MT4 and whatever way your Renko software works.
Renko blocks are calculated based on the closing price of the candles on whatever TF you are using. This means that if you are using an H1 chart the blocks will appear, and disappear, real-time during the hour while that candle is ‘live’, but they won’t “print” permanently on your chart until that 1 hour candle actually closes.
For example, on an H1 renko chart, let’s say the hour begins with the euro trading at 1.3000. You are using 10 pt blocks. During the hour the price drops to 1.2900, then bounces back to 1.3000. (A spinning top or doji candle formation.) If you are watching your renko charts LIVE, you will NOT see a downward V formation. You will see the 10-ish blocks down as it marches toward 2900. As the price bounces, live, real-time, the blocks that were on chart will disappear right before your eyes. 10 blocks become 9, 9 becomes 8, 8 becomes 7, until finally, as the price approaches 1.3000 your last block disappears. The 1 hour candle closes and your chart is left with no more or less blocks than you started with. The prior H1 candle closed at 1.3000, the recent H1 candle just closed at 1.3000. Therefore there was not enough price change from close to close to warrant a new renko block.
If you run a Renko chart on an M1, then compare that to a Renko chart on an H1 using the exact same block size, you will see a whole lot more chatter on the M1.
Hope this clears things up a bit.
"
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You are right when you say that renko is time independent. But if you are using ATR to form the brick then change in timeframe would result to change in the renko charts.
Hope this helps
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I have a doubt regarding the relevance of time in the renko charts. Suppose Im using renko charts on say bank nifty and using 20 block size and 1 hour time frame. The chart shows 8 green boxes first and then two red boxes with the same time stamp of 09 : 15 (Im lookin at the charts in the noon say at 2’0 clock). My question is why did the two red boxes appear within the same hour ? As per my understanding the number of green boxes need to be reduced by three (40+20 = 3 boxes) instead of additional two red boxes. Can someone plz explain what im missing here. Also can someone throw light on how the boxes get erased and reformed again in renko charting ???
Do not waste time trying to follow RENKO charts on a sub standard charting platform. Most of them do not work as per the original renko methodology. In theory, RENKO charts should not take time into consideration. On 90% of the charting platforms, we Indians have access to, They keep repainting the same box again and again.
If you are interested into following renko charts, you can find more info here on this profile.
https://twitter.com/Only_Nifty
The user here successfully uses Renko on a professional chart analysis platform, inquire on the profile for more info.
yes fully agree, renko gives you wrong signals in Kite & repaints itself…had used in past & got trapped.
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Thanks a lot !!