Ambiguity of Renko Charts

A change in position of a grid may easily change the shape of the bricks chart. The most obvious result is that number of bricks in a simple trend can increase or decrease by one.

But even more annoying case may happen. If price is oscillating within a range of 2.5 brick, the same price movement can result in very different Renko charts, depending on the initial grid position.

  1. the range creates a series of several up and down bricks
  2. the entire range is covered by a single brick (a single brick can absorb up to 3-brick range) 

The question is - whether to align price to the opening of the first brick and let the grid make a random pattern, or fix the grid but forge the opening price of the first brick?

You may discuss the topic and help me to adopt your preference.

3 Comments
Posted on 2013 Oct 22
by Mark Perkins @ 23 Oct 2013 08:16 pm
by ovo @ 24 Oct 2013 05:43 am
Thank you Mark, I agree that the fixed grid may be the better option, though my reasons may be slightly different. From (technical) point of view the fixed grid has a good chance to create identical shape after the terminal restart, while the floating start price has no chance.
by ovo @ 25 Oct 2013 09:04 pm
I finally released the change in ver. 1.06.
The implementation of a grid for the Renko chart now depends on settings of SESSION_GAPS. When this input is set to TRUE then the bricks are built in a free layout, aligned with the particular session opening (same as recently). When set to FALSE, the bricks are aligned to a grid (multiple of brick size).
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