Renko candles in OsEngine.
In this article, we will explore a special type of charts known as Renko candles and their usage in the trading platform OsEngine. We will discuss the history of Renko, trading strategies using them, as well as the process of setting them up in Os Engine. Additionally, we will talk about where to find the source code for building this type of candles and explain the calculation method.
1. History of Renko candles.
Renko candles are a type of candles that originated in Japan. The name "Renko" comes from the Japanese word "renga", which means "brick". These candles are unique and differ from traditional candles as they focus on price changes, ignoring the time factor.
2. Calculation of Renko candles.
1. Candle size. First, you need to determine the "brick" size - the minimum price change that will result in a new candle. For example, if the brick size is 10 points, a new candle will only appear after the price changes by 10 points in one direction.
2. Direction of movement. If the price rises by 10 points from the last value, a new green candle (or brick) is drawn. If the price falls by 10 points, a red candle (or brick) is drawn.
3. Filtering movements. Anything within the range of one "brick" (less than 10 points in our example) is ignored, allowing to filter out market noise and focus on significant movements.
3. How to trade with them. Options.
1. Trend-following strategies. One of the main advantages of these candles is their ability to filter out market noise. This makes it easier to identify current trends and open positions in the direction of the trend.
For example, if several bricks appear in one direction within a short period of time, it indicates a sharp movement in one direction, and it may be worth entering in that direction.
2. Breakout strategies. Renko candles are well suited for strategies based on breaking through support and resistance levels. The appearance of a new "brick" may indicate the start of a new movement. Breakouts without considering time, but with consideration of movement.
4. How to enable Renko candles in OsEngine.
Open the main menu in Os Engine and go to "Bot Station Light".
Connect to the "Alor" connector or any other one:
Then create a trading robot, in this case, it will be Bollinger Revers:
Now go to the menu to connect the data stream to the robot:
1. Select the connection.
2. Choose the security.
3. Select the type of Renko candles.
4. Choose the type of candle measurements. Percentages / Absolute.
5. Select the minimum candle size considering the measurement.
6. Choose whether to build shadows for the candles.
7. Click on the "Accept" button.
After the settings, we see a chart with "Renko candles":
5. Where to find the source code for building Renko candles in OsEngine.
You can find the code for Renko candles open-sourced on the platform GitHub.
If you download the project, you will find the source code in the Custom/CandleSeries folder, next to the OsEngine exe file.
Successful algorithms!