Tine Interval behavior in Renko charts

[waynecd]

Hi,

Renko plots are not affected by time yet a 2 point renko chart is different for different intervals like in a 1 minute interval chart from a 3 minute chart.

How does the interval affect the price plot?

Wayne

[eostrom]

http://kb.esignal.com/article.aspx?article=5342&p=1

The time interval on a Renko chart determines what time the chart looks like. For example, a Renko chart will draw a brick only if the prices move by a minimum amount in the interval period specified. Hope that helps...

[shufl]

The Renko forms new bars based on an imaginary other chart. Meaning if it is using 1 min time setting and a 2 point interval, it basically looks at a 1 min chart. If that chart would form a new bar which is beyond the 2 points, then the Renko will form a new bar. If the 1 min chart did not form a new bar, even if the stock traded beyond the 2 points , just didn't c;ose there at the end of the minute, then the Renko will not form a new bar. This is why I like to set the Renko to 10 sec or so. Maybe the 1 min is a more accurate showing of the movement of the security. It's your call. I hope this was helpful.

[waynecd]

Thank you both. I understand how it works now.

Wayne