rajakanpur
New Member
Though time is not a factor for Renko charts, it may be a technique that should be used for swing or position traders rather than for intraday traders. The only parameter which must be determined here is the size of the brick itself.
The bigger the size, the less movement a chart will show but there will be larger stops on the positions. On the other hand, if you take smaller brick size, the sensitivity to price movement will be too high and the reason for using the Renko chart will be lost.
While there is no perfect setting, traders will often use 1% of the price of the stock as the setting on daily Renko charts. However, you need to experiment yourself and see which number suits you the best.
The bigger the size, the less movement a chart will show but there will be larger stops on the positions. On the other hand, if you take smaller brick size, the sensitivity to price movement will be too high and the reason for using the Renko chart will be lost.
While there is no perfect setting, traders will often use 1% of the price of the stock as the setting on daily Renko charts. However, you need to experiment yourself and see which number suits you the best.
