Renko charts and Renko indicators
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Renko charts only show market price movements of a certain minimum size. If the price moves little or not at all, they show nothing. Only when the price moves by the minimum value is a block added to the chart. This block is always placed 45 degrees above or below the last block.
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The Renko indicator package contains 10 indicators. The package is available for free in both NanoTrader Free and NanoTrader Full. The 10 indicators are calculated based on the Renko chart, so you first need to open the Renko chart of the instrument you want to trade on. Then you choose a Renko indicator in the 'Store' folder.
This example shows the popular Bollinger bands indicator. The Bollinger bands are calculated from the Renko chart (top) and, for comparison, from a traditional candlestick chart (bottom). Note that the X-axis, representing time, is not identical. The Renko chart draws a square only when the price change is sufficiently large.
This example also shows Bollinger bands. Above the Renko version based on the Renko chart. Below the regular version based on the Renko chart. This is wrong. So to work correctly, you have to open a Renko chart. Then add one of the Renko indicators from the 'Store' folder.
The following indicators are available: Bollinger Bands, moving average (MA), crossing MA, exponential MA, weighted MA, MACD, RSI, slow stochastic, High-Low channel, and Heikin Ashi.
The advantages of Renko charts and indicators
- Support and resistance levels are easy to identify.
- Small price changes are not taken into consideration.
- Trend and trend reversals are easy to identify.