6/7/2023 0 Comments Renko indicator indicator![]() The size of a brick is determined using two methods: an average true range (ATR) or a trader-chosen arbitrary price amount. If this was the case, no new brick would be created until then, illustrating the point previously made that Renko charts are not fixed to precise time frames like other charts are. In addition, a drop or rise of $0.50 might take any length of time 1 minute, 3 hours, weeks, etc. If the price falls back from $25.50 to $25.00, a new red brick will not be drawn since subsequent bricks cannot be placed next to each other, hence the first red brick may be plotted when the price drops to $24.50 or below. ![]() ![]() The same logic applies when the price drops except for a price reversal. If the price rises to $25.75 before closing, it won't appear on the chart since a brick would be drawn only corresponding to the price movement of $25.00 to $25.50 and not the higher level of $25.75 because it is less than the brick size, which in this case is $0.50. If the price is at $25.00 and climbs higher and closes at $25.50, a new green brick is drawn. For a new brick to be plotted, the price must go up or down by $0.50 or more and close at or above this level.
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