Algo Convention 2019: How To Trade Using Renko Charts

Traders should look at logarithmic value of a brick size while constructing Renko chart, says Definedge Solutions’ Prashant Shah.

Yash Upadhyaya @iYashUpadhyaya

15 May 2019, 08:12 AM IST

A trader points to monitor displaying an S&P 500 Index chart on the floor of the New York Stock Exchange in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

Renko charts only measure price movement. Unlike a standard line or a candlestick chart, Renko charts consist of individual blocks that are called “bricks”.The first step in construction of a Renko chart is to ascertain the size or range of the brick. For instance, if a stock is trading at Rs 100 apiece and the brick size is set to 5, a new brick will only be formed when the price moves above Rs 105 or below Rs 100.When determining t...

Algo Convention 2019: How To Trade Using Renko Charts

Traders should look at logarithmic value of a brick size while constructing Renko chart, says Definedge Solutions’ Prashant Shah.

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