TradingStudies - Renko Bars
Renko Bars For NinjaTrader
Renko charts are price charts with rising and falling diagonal lines of boxes that
are either filled or hollow. Renko charts are "time independent" charts that do
not have constantly spaced time axes.
The word "Renko" comes from "Renga", the Japanese word for "brick". The filled and
hollow squares that make up a Renko chart are often referred to as "bricks." Renko
charts were popularized by Steve Nison in his book "Beyond Candlesticks".
Renko charts have a pre-determined "Brick Size" that is used to determine when new
bricks are added to the chart. If prices move more than the Brick Size above the
top (or below the bottom) of the last brick on the chart, a new brick is added in
the next chart column. Hollow bricks are added if prices are rising. Black bricks
are added if prices are falling. Only one type of brick can be added per time period.
Bricks are always with their corners touching and no more than one brick may occupy
each chart column.
It's important to note that prices may exceed the top (or bottom) of the current
brick. Again, new bricks are only added when prices completely "fill" the brick.
For example, for a 5-point chart, if prices rise from 98 to 102, the hollow brick
that goes from 95 to 100 is added to the chart BUT the hollow brick that goes from
100 to 105 is NOT DRAWN. The Renko chart will give the impression that prices stopped
at 100.
It's also important to remember that Renko charts may not change for several time
periods. Prices have to rise or fall "significantly" in order for bricks to be added.
Compatible with NT6.5 only
To Import to NinjaTrader:
1. Download the attached file to your desktop
2. From the Control Center window select the menu File > Utilities > Import
NinjaScript
3. Select the downloaded file