I have been looking at Renko charts for the past couple of days and traded it live today for the first time.
Thanks to J the FX wizard for the heads up on Renko charts.
There doesn't seem to be alot of info on the web about Renko charts so if you have anything to offer please post your comments.
This is the Investopedia information.
A type of chart, developed by the Japanese, that is only concerned with price movement; time and volume are not included. It is thought to be named for the Japanese word for bricks, "renga". A renko chart is constructed by placing a brick in the next column once the price surpasses the top or bottom of the previous brick by a predefined amount. This type of chart is very effective for traders to identify key support/resistance levels. Transaction signals are generated when the direction of the trend changes and the bricks alternate colors.
I have been using range bars for my entry chart and the renko bars are just a different type of range bar. The key being they have to move past the previous bar by the set number of ticks you choose, not just oscillate in that range.
We shall see how things go from here but I like what I see so far.
Only 2 signals today as I waited for a previous low to be taken out before entering.
One winner and one loser and a nice demonstration of let your winners run and cut your losers quick. The daily reward / risk ratio was 7.76.
13 Tick Renko Range Bar Chart (click on chart to view)