Coding a Renko chart (Renko chart settings)
How is the default brick size of the Renko chart calculated?
Does Upstox use the 14 period Average True Range?
@AbhiShah The brick size is based on a price range which is calculated using caveman algorithm. Rather than setting a default value to the price range field, this algorithm will fit about 300 aggregated bars of data on the chart. Consequently, the range will vary depending on what asset is being viewed.
@AbhiShah Renko bars use Close method only(to filter the data based on brick size), not High/Low or ATR.
@kunal Are you referring to normal candle stick bars when you say aggregated bars? How do you define/decide the range for different assets. 'Assets', I am assuming are different stocks.
Please suggest the formula to calculate the brick size. Thanks
@surya You are talking about the Renko chart itself, I am referring to the brick size
@AbhiShah I was talking about "Does Upstox use the 14 period Average True Range?"
In this context I said, Renko does not use ATR or High/Low
Here is some important feedback for developers. The Renko chart implementation in Upstox makes it highly difficult for a trader to use it at the moment. Here are some concerns:
- In my current chart setup, I have four charts for different assets visible simultaneously on the screen. Each chart will take up 1/4th of my screen space. Suppose I want to take a closer look at one of the charts and I use the maximize button so that the chart fills up the entire screen. To my surprise, the brick size changes and I see a completely different chart even though I have not changed the interval at all. This is a great deterrent to renko chart usage. Needless to say, the brick size should remain the same at all zoom levels.
Please see attached images for illustration. In the First image below, GoldM has a brick size of 0.11%.
The second image below is the full screen version of the same GoldM Chart, but note here that the brick size has automatically changed to 0.05% and as a result we see a completely different chart.
- It is vitally important for a trader that the brick size should remain constant for the duration of his trade. Say I take a long trade in Gold at 11AM in the morning, based a brick size of 25. I plan to exit when renko chart shows a reversal. In the meantime, say by 8PM in the evening, the brick size has changed based on your caveman algorithm to say 30. Now the chart which I see in Upstox based on this new brick size, will be totally different to the one I had seen when I had taken the long position at 11AM in the morning. This will completely mess up my exit.
Please do something so that the user can freeze the brick sizes for a particular asset. We cannot have a chart changing brick sizes in the middle of a trade. It would be preferable if you could give the user control over brick size of each asset. Then the user can enter brick size for a particular asset and it remains the same for that asset until its altered.
@arshadaziz Thanks for the suggestion. As of now we don't have option to modify the settings for Renko. We have added it to our plan.