To get a solid grasp of the Renko Line Break indicator, let’s break down how it compares to other methods. Here’s a handy table that outlines the key differences:
| Renko |
Three Line Break |
Renko Line Break |
|
|---|---|---|---|
| Box Size |
All boxes are uniform in size, equal to a set value. |
Boxes vary in size based on market movement. |
Boxes vary in size but are never smaller than a specified value. |
| Trend Continuation (New Box) |
A new box is added if market movement is less than the specified value. |
A new box is created if the closing price exceeds the maximum (or falls below the minimum) of the current series, regardless of movement size. |
A new box is added if the closing price exceeds the maximum (or falls below the minimum) of the current series by at least the specified value. |
| Trend Reversal (New Box) |
A reversal occurs if the price exceeds the last box by at least the specified value. |
A reversal is established if the closing price exceeds the last three lines, movement size is irrelevant. |
A reversal occurs if the closing price exceeds the last box by at least the specified value. |
| Timeframe |
It can theoretically be used on any timeframe, but for the cleanest view, use minute data (ideally every tick). |
It is drawn from the closing prices of the current timeframe. |
It is also drawn from the closing prices of the current timeframe. |
Additional Information:
- To avoid cluttering your chart with too many graphical elements, the indicator displays as two lines representing the upper and lower boundaries of the boxes.
- An indicator buffer tracks the current trend boxes on each bar, showing negative values for downtrends.
Parameters:
- Min Box Size - This parameter sets the minimum size of boxes in pips.
Recommendations:
- This indicator is designed for trend analysis and can serve as a solid alternative to traditional trend-defining tools that rely on averaging.
Related Posts
- Unlocking MetaCOT 2: Your Ultimate CFTC Indicator Toolkit for MT4
- Visualize Current Trends Across All Time Frames with This MetaTrader 4 Indicator
- Unlocking the Power of Master Tools for MetaTrader 4
- Hourly Buffers for Data Collection in MetaTrader 5: A Simple Guide
- Mastering the MACD Candle Indicator for MetaTrader 4