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On 10/04/06 I was watching with the following:
Symbol OIH, 1 minute Renko Chart, Box .05, HL/2
At 13:27, the last Renko brick had a high of 120.30 and a low of 120.25.
The next down brink didn't appear on the chart until 13.31 when two down bricks painted with a low of 120.15.
The one minute candlestick chart at 13.31 has a low of 119.96, almost 20 cents (3+ Renko chart box sizes) lower. Should these lower prices be reflected in the Renko Chart?
As another example symbol EUR A0-FX on 10/06/06 using .0005, HL/C 5 Minute interval. There is a bar at 07:55 with a low of 1.2666 another bar (actually 6) was not painted until 8:35.
Looking at the one minute candlestick chart of the same symbol, at 8:30 there was a high of 1.2714 64 pips higher yet, this price action is not reflected in the Renko chart?
Is this corrrect behavior for the building of Renko charts or does there appear to be something wrong?
If so, I would appreciate if can someone please provide some informationon on how the algorithm works?
I also have another problem where a moving average and other indicators seem to after a short period of time get plotted incorrectly. Is this the same "drifting" problem I see in several earlier posts and if so is there a way to correct the problem?
Am I correct in saying that Renko charts, like point and figure, seem designed more for a longer term analysis rather then "real time analysis"?
The reason I ask this is that depending on the volatility of the market, the price recorded in the most current Renko bar can be significantly different from where the market is actually trading?
Wouldn't this also almost guarantee in volatile markets that the price recorded by the strategy backtester which only "sees" the current Renko price bar, that the profit/loss results cannot be accurate?
Are there any techniques to eliminate the apparent "forward looking" characteristics of Renko charts when backtesting?
For example if I ran a strategy against the OIH 1 minute data today and a trade was generated at 13.31 the price range within the last Renko bar was .20 cents away from the "real" market and this was on a 1 minute chart, on a 5min or longer there could be a much larger difference between price recorded and the actual price?
Symbol OIH, 1 minute Renko Chart, Box .05, HL/2
At 13:27, the last Renko brick had a high of 120.30 and a low of 120.25.
The next down brink didn't appear on the chart until 13.31 when two down bricks painted with a low of 120.15.
The one minute candlestick chart at 13.31 has a low of 119.96, almost 20 cents (3+ Renko chart box sizes) lower. Should these lower prices be reflected in the Renko Chart?
As another example symbol EUR A0-FX on 10/06/06 using .0005, HL/C 5 Minute interval. There is a bar at 07:55 with a low of 1.2666 another bar (actually 6) was not painted until 8:35.
Looking at the one minute candlestick chart of the same symbol, at 8:30 there was a high of 1.2714 64 pips higher yet, this price action is not reflected in the Renko chart?
Is this corrrect behavior for the building of Renko charts or does there appear to be something wrong?
If so, I would appreciate if can someone please provide some informationon on how the algorithm works?
I also have another problem where a moving average and other indicators seem to after a short period of time get plotted incorrectly. Is this the same "drifting" problem I see in several earlier posts and if so is there a way to correct the problem?
Am I correct in saying that Renko charts, like point and figure, seem designed more for a longer term analysis rather then "real time analysis"?
The reason I ask this is that depending on the volatility of the market, the price recorded in the most current Renko bar can be significantly different from where the market is actually trading?
Wouldn't this also almost guarantee in volatile markets that the price recorded by the strategy backtester which only "sees" the current Renko price bar, that the profit/loss results cannot be accurate?
Are there any techniques to eliminate the apparent "forward looking" characteristics of Renko charts when backtesting?
For example if I ran a strategy against the OIH 1 minute data today and a trade was generated at 13.31 the price range within the last Renko bar was .20 cents away from the "real" market and this was on a 1 minute chart, on a 5min or longer there could be a much larger difference between price recorded and the actual price?
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