# Renko charts?



## >Apocalypto< (2 February 2007)

Hello members,

Looking in last months Your Trading Edge I saw that they had a graph with the Japanese Renko system being used.

I also saw that it's available from CMC.

Have any of you used it? Is it any good?

I have to say it looks great!


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## Joe Blow (2 February 2007)

Some information about Renko here: http://www.marketscreen.com/help/atoz/default.asp?hideHF=&Num=94


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## >Apocalypto< (2 February 2007)

thanks for the link


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## tech/a (3 February 2007)

Metastock has it as a display type for all charts.

Just another way of displaying price action.


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## >Apocalypto< (5 February 2007)

tech/a said:
			
		

> Metastock has it as a display type for all charts.
> 
> Just another way of displaying price action.




I was impressed when i saw it i would have to really see it in real time action.

and yes it is another way to display price action tec..........

but it looks like a damn clear one! 


come on guys any one use it to trade?


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## sreenathc (29 September 2008)

I am using Renko to trade 'trends'.....I use a 2x box for reversal and set stops/buys based on this. In the current conditions , I am dying a death by thousand cuts as it whipsaws.....but, I read in some book somewhere, that trend trading will prosper in the end (provided the ranging stuff stops soon!!).

  I have not yet made money using this charts....since I started this just 2 months ago....but am hoping to!

Cheers,
Sreenath


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## Gringotts Bank (9 February 2013)

Thought I'd bump this.  Who uses renko?


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## sinner (11 February 2013)

Gringotts Bank said:


> Thought I'd bump this.  Who uses renko?




Renko only takes closing prices into account, if you're going to use something like this I prefer Point&Figure because it takes highs and lows into account.


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## Country Lad (11 February 2013)

sinner said:


> ..............Point&Figure because it takes highs and lows into account.




No, P&F should not take highs and lows into account.  The plotting should be only the closing price.

Cheers
Country Lad


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## sinner (11 February 2013)

Country Lad said:


> No, P&F should not take highs and lows into account.  The plotting should be only the closing price.
> 
> Cheers
> Country Lad




wut?

Maybe I should rephrase.

PnF allows you to take the highs and lows into account if you so choose. Renko does not. This is from wikipedia:



> The first book/manual dedicated to Point and Figure was written by Victor Devilliers in 1933. Chartcraft Inc, in the USA, popularized the system in the 1940s. Cohen founded Chartcraft and wrote on point and figure charting in 1947. Chartcraft published further pioneering books on P&F charting, namely those by Burke, Aby and Zieg. Chartcraft Inc is still running today, providing daily point and figure services for the US market under the name of Investors Intelligence. Veteran Mike Burke still works for Chartcraft, having started back in 1962 under the guidance of Cohen.
> 
> ...
> 
> The high/low method was invented by A.W. Cohen in his 1947 book, 'How to Use the Three-Point Reversal Method of Point & Figure Stock Market Timing' and has a large following.




I think if you're not using high/low data what is even the point? It's definitely not "reading the tape" in the traditional sense of the word.


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## Country Lad (11 February 2013)

sinner said:


> wut?
> 
> Maybe I should rephrase.
> 
> PnF allows you to take the highs and lows into account if you so choose.




I said shouldn't, not couldn't.  You can also use only Open, only High, only Low, high/Low or only Close.  I wouldn't take too much charting advice from wikipedia.




sinner said:


> I think if you're not using high/low data what is even the point? It's definitely not "reading the tape" in the traditional sense of the word.




"Reading the tape" is the role of bar charts and candle charts, not P&F.  P&F ignores time so it is not intended to, nor can it give you a graphical interpretation of price movement as has occurred in the market.  The role of P&F is to identify trends and patterns.  

Having experimented with P&F charts and used them for 30 years, my view is that you will lose their effectiveness when using high/low instead of close.

In response to the OP, I played around with Renko compared to P&F for a while but could not really see any benefit over the P&F.

Cheers
Country Lad


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## deve (7 February 2019)

Hello

I've been having a look at Renko charts. Am I correct that if using Renko charts, there would be a need to be at your screen, or at least very close by? I have a full time job so prefer longer timeframe charts (eg 12 hr, daily) where I can leave my charts for long periods during the day.

Thanks!


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## peter2 (7 February 2019)

Not necessarily, you may chose to use larger box sizes that take time to fill. Renko charts remove some of the detail, like the gaps and the actual highs and low. They also discount time. A box may take a long time or a short time to form. The renko charts show the price swings more clearly. 

It's up to you to decide if this form of charting helps you to trade profitably.


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