Renko chart indicator

Renko chart or brick chart, it's a more smoothed than candle stick chart, the price in the same scale will put in the same box (you can modify this box unit) , the changing of the box color generates the entry signal. Renko chart isolates the underlying price trend by filtering out the minor price changes. So, renko charts can also be very helpful when determining support and resistance levels. Calculation

Renko charts are always based on closing prices. You specify a "box size" which determines the minimum price change to display.

To draw Renko bricks, today's close is compared with the high and low of the previous brick (white or black):

+ If the closing price rises above the top of the previous brick by at least the box size, one or more white bricks are drawn in new columns. The height of the bricks is always equal to the box size.

+ If the closing price falls below the bottom of the previous brick by at least the box size, one or more black bricks are drawn in new columns. Again, the height of the bricks is always equal to the box size.

+ If prices move more than the box size, but not enough to create two bricks, only one brick is drawn. For example, in a two-unit Renko chart, if the prices move from 100 to 103, only one white brick is drawn from 100 to 102. The rest of the move, from 102 to 103, is not shown on the Renko chart.

In MT4 platform, you can use this renko live chart v3.4 EA to show the chart. Attact the EA in normal chart, modify the box unit, and then open the offline chart.

Here is the example:

you can set the indicator in this chart to get more accuracy signal.
sources: refer www.metastock.com