Technical Studies Reference
The Renko Chart study is an older study that has now been replaced with the new Bar Period Type >> Renko Bar (in Ticks) setting. This study is considered discontinued and is unsupported by Sierra Chart.
The Renko Chart study can only be accessed through Analysis >> Studies >> Add Custom Study >> Sierra Chart Custom Studies and Examples. Sierra Chart support will not answer any questions about this older study.
A Renko Chart is a chart made up of boxes which are always the same size. The value of these boxes are specified with the Renko Box Size Input.
A Renko box is drawn in a Renko chart when the underlying data in the chart moves by the specified Renko Box Size.
In order for this study to work properly, you must set the Renko Box Size correctly. In newer versions, when it is set to 0, Renko Box Size will be automatically set based upon a multiple of the Tick Size.
A new box will not be drawn until the Renko Box Size has been met. This study is built from the underlying bars in the chart. By default, the Last/Close values of the underlying bars are examined. For a more stable and complete Renko chart, you will want to set the Use High/Low Values Instead of Last Value Input to Yes.
This study can be applied to a chart of any time period per bar. This is set through Chart >> Chart Settings. Underlying bars of a very short duration, such as under 10 seconds, will create the most accurate chart. You may wish to use a longer time period per bar for different results. The study can be applied to Historical Daily charts as well.
Note: You must have the proper Tick Size set in Chart >> Chart Settings for the study to work properly.
- Renko Box Size: This Input specifies the actual range value (height) of a Renko box on the chart. This is also the amount by which the Last/Close price of the underlying bars in the chart have to move in comparison to the top or bottom of the last drawn Renko box, in order to draw a new box. This Input needs to be a multiple of the Tick Size for the symbol of the chart that the Renko study is applied to.
- Use High/Low Values Instead of Last Value: Normally, Renko bars are based upon the Last or Close value of the underlying bars in the chart. This is the case when this Input is set to No. When this Input is set to Yes, then the High and Low values of the underlying bars in the chart will be examined to determine if a new Renko bar can be added. This will provide for more complete analysis of the underlying data. This is nonstandard, however it does create more stable Renko chart display and the Renko bars will consider all of the underlying price data.
- Ignore Latest Underlying Bar until Close: When this Input is set to Yes, then the latest underlying bar in the chart is ignored until it completes. This is useful when Use High/Low Values Instead of Last Value is set to No because when Renko bars are based upon the Last value, as the latest bar is building in real-time, this can cause the last Renko bar to appear and disappear as the condition for creating a bar is being met and not met. Therefore, when this Input is set to Yes, this appearance and disappearance of the latest Renko bar, will never occur.
*Last modified Sunday, 03rd December, 2017.