Replies to post #415 on RENKO CHARTS

[laurap]

soapybubbles

i am tinkering with a renko 5 minute chart for breakout trading.

if you have a chance to look at it and give me your input i would greatly appreciate it.

my goal is to keep it as simple as i can ...tia

[simplegreen]

Thought I would pop in a moment Soapy...busy day with honey do's...the ATR/points issue is as you know vitally important to generate accurate Renko charts so I have been doing a lot of analysis with respect to accurate figure to plug in on any stock..here are my findings.
First I decided to settle on a 1 year Renko chart...

Next I set up a candle chart of 1 year as well

After that I look for a stock and will use DPDW per your example earlier

Next I look at the SC.com CANDLESTICK CHART and find the ATR(14) value and in the case of DPDW it says .079

Next I pull up the Renko chart and plug in .079 in the points box and shazaaam...there is the proper chart!

I find that the ATR(14) value displayed on the Renko chart is improper but the candle chart value of .079 is ALMOST accurate.I say almost accurate because Stockfetcher assigns the ATR(14) at .08 and if you run the Renko chart with both figures you will see that the price point reversals are correct on the fetcher value but only close with Stockcharts.com's ATR(14) value.Here is the final 1 year Renko chart with points value set at .08 and BTW everyone might want to put this post on "keep" if you think this step by step method is good.A minor mistake on the points value can lead to an inaccurate Renko chart IMO.