Exploring Charting Techniques

HOME   Back to Ninjatrader Formulas Overview

Chart Types

What type of chart should you be using? Lines, bars, candlesticks… there are so many choices. In this first part of a six-part series, an overview of charting styles is presented that may help you make the right choice for analyzing the markets. Many types of charts are available to the trader. Here, I will look at the most common ones as well as some special ones. I’ll look at their specific application as well as their advantages and disadvantages. Later in this series, I’ll look at different technical analysis techniques that can be applied to charts.

Modified renko charts

Considering the shortcomings of the standard renko bar chart, I prefer using a modified version. This modified chart will use the correct opening price for the next bar and will also show wicks. An upward-moving brick can only have a wick at the lower side and a downward-moving brick can only have a wick at the upper side. This is a more accurate representation of the price move made within a single bar. However, the problem concerning gaps filled with virtual bricks in relation to buy and sell prices still exists. With pairs like the EUR/USD and the 24-hour quotation, the problem will be limited, but if you are using sessions in which large gaps are possible, then you should be careful. For example, if you are trading the EUR/USD during regular US trading hours, the best thing to do would be to show the gaps on the chart. Most gaps will then appear during the daily session breaks (SB). You will find the code for creating modified renko charts below.

Special offer: "Capturing Profit with technical Analysis"

A full description can be found in the Stocks & Commodities July 2014 publication.

Here is the code for the NinjaTrader 7 Modified Renko bars.

Special offer: "BBS Band Indicators" DVD

 

 

HOME   Back to NinjaTrader Formulas Overview