4/19/2021 0 Comments Steve Nison Scam
In the sample snapshot above, the EURUSD adopts the 4-hour timeframe and a 30-point box size.This concept is the very foundation of Renko charts, in which time and volume have no role, and only price action is considered.
By this characteristic, Renko charts can be likened to Point and Figure charts and Three Line Break charts, but rather than using X- and O-columns, Renko uses price bricks that represent a fixed-price movement. Instead, these charts only consider price movement, which makes them very challenging for some traders, most of whom are used to trading the five-minute, the fifteen-minute, the hourly, or the daily charts. However, because Renko charts have no time dimension, some traders find it to be stripped down and easy to analyze. From this feature, the first thing that can be noticed about Renko charts is their simplicity. The charts are very smooth, and the trends can be clearly delineated; their channels are also very clear. No noise appears to be affecting the charts, and this trait is where the power of the Renko comes in. These charts have many attributes that are very advantageous to those who build their strategies around them. Legend has it that in Feudal Japan, an old bricklayer set colored bricks on top of plain ones by accident. From this incident stemmed the concept of the Renko, or Renga (literally bricks in Japanese). It was Steve Nison in the US, however, who actually popularized Renko Charts in his book, Beyond Candlesticks. Renko charts have been used for quite some time now, and people have traded quite successfully using the tool, despite the unfamiliarity and the discomfort that it brings with its simplicity. They have no upper or lower shadows, and the box size can be changed. A new box will appear on the chart only when a defined level of price change occurs. If the box size is set to a smaller value, then new boxes come faster. Conversely, if the size is set to a higher setting, then a larger price change is needed to produce a new box on the chart. A box size is specified to determine the minimum price change to affect any significance that will be displayed on the chart. On the one hand, if the closing price rises above the top of the previous brick by a value that is greater than or equal to the box size, then one or more blue bricks are drawn in the next column. On the other hand, if the closing price falls below the bottom of the previous brick by a value that is greater than or equal to the box size, then one or more red bricks are drawn in the next column. ![]() For example, a Renko chart with a box size of 2 and whose base price of 85 moved to 82 will produce one red brick based on the movement from 85 to 83. The same rule applies when only a fraction of the box size is reached. Afterward, MetaTrader is restarted, and the chart where the Renko bricks are to be applied is selected. To set up Renko, the timeframe and the box size are first selected.
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