Calculating RSI from Synthetic Renko Bricks on Time Charts

Summary

This indicator builds its own Renko price series while running on a time-based chart, then calculates RSI from changes in the synthetic brick closes. Brick size can be fixed or based on ATR, and users can choose closing prices or high-low data as the input. With ATR sizing, the script rounds the calculated size to the instrument's minimum tick and updates the size when the Renko close changes. The RSI routine accounts for brick moves and reversals, including bars that span multiple bricks.

The plotted oscillator includes configurable overbought and oversold levels and alerts for crossings of those levels. Renko construction filters out movements smaller than the chosen brick size, so the resulting oscillator follows price changes rather than elapsed time. The document explains the calculation and settings but supplies no trading rules, backtest results, or evidence that the indicator predicts returns. ATR sizing and the choice of source affect the brick sequence, and threshold alerts should be evaluated for the intended instrument and timeframe.

Key ideas

• The indicator constructs Renko bricks internally on a time chart rather than relying on a built-in Renko chart series.
• Brick size can be fixed or ATR-based, with ATR values rounded to the instrument's minimum tick.
• A custom RSI calculation updates from synthetic brick changes and handles multi-brick moves and reversals.
• Users can select close or high-low data and adjust RSI length and overbought and oversold levels.
• The script supplies oscillator alerts but does not define a trading strategy or report performance evidence.

Tags

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