It is a popular technique used by traders with Renko charts but which is all automated by the Renko Optimiser indicator.Įverything is then encapsulated in a button conveniently located at the bottom of the chart. You may already be familiar with ATR and by using the ATR to determine the brick size, we can eliminate the noise or volatility normally present in a candlestick chart. The Quantum Trading Renko Optimiser indicator for NinjaTrader offers a simple, effective, and systematic method in choosing the most effective brick size, and the best part of all – it’s all done with just the click of a button!īy using Average True Range the Renko Optimiser indicator starts by calculating the degree of volatility of the instrument within a given period and timeframe. The indicator delivers the optimal setting automatically. However, there is one major disadvantage to a standard renko chart and that is traders have to manually input a value to the renko chart, and whilst experienced traders can develop a ‘feel’ for the optimum value, this can take time to develop.Īfter all, how do you choose the “right” value? Indeed what is the reasoning behind choosing a brick size, and is there a systematic way to pick a brick size for any situation?Īnd for traders who are new to the concept of Renko charts, it can be daunting and often is simply a ‘guess’ at what might be considered a ‘reasonable’ number of pips, points or cents.Īnd this is where the Quantum Trading Renko Optimizer indicator for NinjaTrader steps in, as it has been developed to offer traders all the advantages of using a renko chart with the added benefit the trader no longer has to worry about guessing the optimal setting for any instrument or market. So for example if a brick is set to close once 10 pips, points or cents have gone through the market it will only do so once this value has completed. The bricks are drawn at 45 degree angles from each and are usually based on the closing price for the input value. And it does this because a renko chart is devoid of time.Īnd by ignoring time renko charts focus solely on price moves that meet a pre-determined value, with the chart displaying price ‘bricks’ that represent this fixed price move. The renko chart does this by displaying price momentum as it speeds up and slows down. 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. Renko charts are one of the most popular Japanese charting techniques and there are several reasons for this.įirst it allows traders to focus solely on price as the chart filters out all minor price fluctuations and market ‘noise’.
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