Renko Trend PRODUKTBÜNDEL

Renko Trend

A trend indicator to rule them all

Price representation in Renko replaces traditional Japanese candlesticks with bricks of equal size that are created only when price changes exceed a predefined limit.

The representation of prices in Renko is therefore independent of time. It does not take into account periods of price stagnation and only takes into account phases when prices are trending.

The Renko Trend indicator combines the representation of prices in Renko and a trend indicator similar to the Super Trend indicator, but less sensitive to short-term price movements.

The Renko Trend indicator improves trend identification, regardless of the timeframe, while being fast enough to take into account trend reversals.

Parameters :

·         RenkoType

If the variable “RenkoType”  is filled in to 0, then the size  of each Renko brick  will be equal to a percentage of the price defined with the variable “BoxSize“.

If the variable “RenkoType”  is filled in to 1, then the size of  the Renko brick  will be equal to a multiple (integer or not) of the ATR defined with the variable “CoefATR“.

·         BoxSize

If “RenkoType” is set  to 0, then the size  of each Renko brick  is a percentage of the price set with the variable “BoxSize“.

·         CoefATR

If “RenkoType” is  set to 1, then the size of each Renko brick is a multiple (integer or not) of the ATR defined with the variable “CoefATR“.

·         Period

The variable “Period” is used to define the number of periods of the ATR.

·         Multiplier

The “Multiplier” variable makes it possible to make the Renko Trend more or less sensitive.

Possible uses:

The Renko Trend indicator can be used in different ways:

1.                   Combination of two Renko Trend

As with moving averages, two Renko Trend indicators, a first fast and a second slower, can be combined to give buy signals (the fast crosses at the slowest upside) and sell (the fast crosses at the slowest downside).

See chart below “Crossing of two Renko Trend indicators“

2.                   Color of Renko Trend

Another use is to use slope changes (increasing slope to ð decreasing slope or vice versa) which can be materialized by a color change on the graph.

See chart below “Change in slope of the Renko Trend indicator“

Crossing of two Renko Trend indicators:

Change in slope of the Renko Trend indicator: