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Renko Bricks

Package:  SwissTrader's Renko Bricks Indicator Package

Renko bricks may be thought of as an alternative way of "sampling" market action.  Renko bricks focus the attention on the range of price, rather than the passage of time.

Another way to think of Renko bricks is to consider that they treat a series of prices as a series of "congestion zones".  When price breaks out of the current congestion zone, a new brick begins.  The display of Renko bricks is an intuitively clear representation of market movement without consideration of the "noise" that occurs inside of a single brick.

SwissTrader and Progster have combined their code and insight to create this package for easily viewing market action on a single symbol or an entire list (via RadarScreen).

Advantages of Renko

Analysis of Renko bricks can provide very satisfying answers to those elusive questions:

Is this symbol trending?

Is this symbol in congestion?

The number of same-direction bricks-in-a-row measures the length/strength of the current trend.

The "age" of the most recent brick is an unambiguous measurement of congestion.

It is hard to imagine simpler or more effective answers to the questions of trend and congestion than those provided by Renko bricks.

What It Looks Like

Here is a picture of the 3 Renko indicators applied to a 5m chart of MO:


At the top, in the same pane with price, we see the bricks drawn visually by '$TT Renko Bricks V5'.  In the middle, we see the age of each brick displayed by '$TT Renko Brick Age', and at the bottom we see the "trend count" displayed by '$TT Renko Trend'.

And here is a picture of just the bricks on a 100t chart of the ES:


Here is a picture of  '$TT Renko Bricks V5' applied to a RadarScreen:


Notice how the direction of the latest brick (BrickDir), the age of the latest brick (BrickAge), the count of bricks in the same direction (BrickTr), and the brick location and size are all displayed, and available for sorting.

Would you like to know which symbols are moving up or down as of right now?  Sort on BrickDir.

Would you like to know which symbols are congested (coiling for a later breakout)?  Sort on BrickAge.

Would you like to know which symbols have a trend in progress, and how strong/old that trend is?  Sort on BrickTr.

With a Renko Radar, your insight into both congestion and trend is instantaneous.  All the noise, all the "fakes", have been removed for you when you choose to view the market through the lens of Renko.

You set the scale of interest with your definition of brick size, the software serves up the status of both trend and congestion.  It doesn't get any easier than this!

How It Works

Price action is monitored at the tick level by a special function to detect when a new brick of your specified size should be formed.

The function call makes available:

bullet a flag to indicate when a new brick is formed (and in which direction)
bullet the high, middle, and low value of the newly formed brick
bullet the age of the current brick
bullet the number of bricks in the current "brick trend"

You may call this function in your own strategy code to develop trading systems based on Renko bricks.

The supplied indicators produce the plots as shown above by calling the same function, thus allowing visualization which can precisely match your strategy code.

Special Features

Brick height (price range) may be specified in ticks, or in percent (of price).  Using a brick height in ticks is ideal when daytrading on a low timeframe chart.  Using a brick height in percent provides an "apples-to-apples" comparison of the congestion/trend status for a list of symbols.  On a daily or weekly Radar, you'll be able to see the standing of every symbol on your list relative to the others simply by sorting as described above.

Simplistic implementations of Renko typically startup "whenever", according to the data available.  If a RadarScreen and a Chart were not started on exactly the same bar, they would not agree (unless by luck).  In this package, care has been taken to allow you to construct RadarScreens and Charts which agree with each other.  This is done by providing an option to "reset on session change".  When using this option, the RadarScreen and the Chart both reset their calculations at the start of each session, ensuring agreement (when properly configured) even though the amount of data loaded in the Radar and the Chart is not the same.

To allow for flexible testing alternatives, a "reset on session change" may be referenced to the new open, the new close, or the prior close.  This allows for differing treatment of gaps and the unruly first bar of the day.

What You Get

A .ELD file containing the Renko brick indicators and the function upon which they are based.

Three demo workspaces, containing:

bullet A linked RadarScreen/Chart setup
bullet A set of windows illustrating reset choice effects with Tick setup
bullet A set of windows illustrating reset choice effects with Percent setup

Documentation in Word format, and Customer Support as needed to get it all running.

You will receive a protected .ELD file (non-disclosed source code) containing all the indicators and functions described above.  The package is locked to your TS Customer ID.

What It Costs

$300 puts optimizable brick-size Renko into your trading toolbox.

Renko Bricks Indicator Package For TradeStation -  $300 

How You Get It

This package will be emailed to you after your PayPal payment is processed.

Please be aware of the caveats before you order.