Building Renko Price Boxes and Tracking Their Volume

Summary

This indicator constructs Renko-style price boxes and annotates them with traded volume. It estimates an initial box size from recent ranges, then uses an average true range calculation for later bars. As price moves far enough to cross box thresholds, the indicator shifts the box boundaries and colors boxes according to whether the movement is upward or downward. It accumulates volume while price remains within a box and labels volume at directional changes and continuations.

The method is intended to show activity associated with each price-defined box while retaining a time-based chart, which the author presents as an alternative to switching entirely to Renko charts. The document provides implementation logic but no performance study, chart examples, or comparison against other volume displays. Box sizing depends on configurable historical measures, and the volume labels are rounded and scaled. The author also notes that a future platform version may include volume on native Renko charts, potentially reducing the indicator’s usefulness.

Key ideas

• The indicator derives box size from recent ranges at first and average true range afterward.
• It updates Renko box boundaries when closing prices cross successive box thresholds.
• Box colors distinguish upward and downward price movement.
• Volume is accumulated and displayed for periods associated with each box.
• The document offers implementation details but no evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.