I have a question about renko bar... From what I understand about them is that a 3 renko bar chart should print when prices moves by 3 ticks in one direction. Now I loaded the a 3 renko chart in real time to watch it. I noticed that when a new brick opens sometimes the ticks go to one side by more than 3 ticks (about 5 or 6 ticks) from the open price. Other times the price will go 3 ticks to one side then go 3 ticks to the other side WITHOUT the renko brick closing.....
What is it waiting for??? I understand that nor time or volume are involved? yet the brick doesn't always close after exactly the number of ticks required. Hence there are these wicks that modified renko charts display. From my understanding of what renko charts are, there should be NO possibilites of wicks? correct?
Is there anyway to get a chart where it would print a bar or a brick after 3 ticks that go in one direction..?
On a different note, Because of the wicks that are not shown in renko bars, backtesting on historical data is not accurate.... My question is; does this also apply on range bars... Can I back test range bars accuractely with no hidden data.
Thank you
Comment