Please note that since renko charts are devoid of time so the time x-axis of the chart does not apply to the renko chart displayed. When applied, the Dynamic Renko indicator is nestled below the main chart and creates a renko chart representation of the time-based chart above. Unfortunately, the renko chart type is not always available in trading platforms and the Quantum Dynamic Renko indicator solves just that with some exciting features. The renko chart does this by displaying price momentum as it speeds up and slows down and it does this because a renko chart is devoid of time.įinally, because the bricks are drawn at 45-degree angles from each other, the charts are easier to read and to analyze.
Second, a renko chart then helps traders in what is probably one of the most difficult aspects of trading, namely staying in a position once a move is underway. This makes it easier for traders not only to identify strong moves but also to spot significant turning points, and so allow traders to deploy smarter entries and exits. This offers the trader some advantages.įirst, it allows traders to focus solely on price as the chart filters out all minor price fluctuations and market “noise”. This gives the renko chart a pleasant quality of having equally sized bars that are running up or down in 45-degree angles. Here’s how: a bar us created when the price exceeds the previous bar’s high or low by a predefined amount or what we call the box size or brick size. It removes “time” in the equation and focuses on price action effectively baring the true direction of the market without the noise that you would normally see in a normal time-based chart. It refers to a Japanese charting technique that is popular among traders because of its special way of plotting bars.
If you have been trading for a good amount of time, then you might have already heard of the word “renko” or have seen it in trading forums and passed around trader discussions and communities.
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