Renko on daily charts?

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Xyzzy
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Renko on daily charts?

Postby Xyzzy » 10 May 2011

I'm exploring the possibility of using renko charts in a swing trading setup. Specifically, I'm hoping to test something like is described here:
http://breakpointtrades.com/controls/preview.php?nl_id=267

The StockCharts.com website allows you to create renko charts on daily charts, as shown here:
http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:renko

However, unless I'm mistaken, that doesn't seem possible with MultiCharts. MultiCharts only seems to create renko charts based on tick data. This is a problem, as my data provider (IQ Feed) only provides a limited amount of tick data, so it's impossible to display and test renko charts on the longer-term timeframe (months and years) that I'm looking for for back-testing purposes.

Is there any way to go about creating renko charts with daily data in MultiCharts, either by default or through some workaround or add-on?

By the way, I know that renko charts aren't time-based charts, so the concept of a "daily" renko chart might be imprecise. It ideally requires data based on a shorter time frame to construct the individual blocks accurately.

However, I don't see why you should need tick data for that -- it seems to me that you could construct renko blocks based on minute or second data, e.g., with the trade-off of some imprecision about when each individual block is formed. You should also be create renko charts with daily data with a greater trade-off in accuracy.

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TJ
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Re: Renko on daily charts?

Postby TJ » 10 May 2011

this might help:
Renko-Adaptive indicator (based on ATR)
http://www.tradersxchange.com/viewtopic.php?f=38&t=585

Xyzzy
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Re: Renko on daily charts?

Postby Xyzzy » 10 May 2011

Thanks TJ! I'll give this a shot.


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