Renko Overlay with Configurable Brick Sizing and Reversal Alerts
Summary
This indicator constructs Renko-style bricks over ordinary chart candles to emphasize price movement while filtering out smaller fluctuations. Brick size can be fixed, based on average true range, scaled fractions of that measure, or set as a percentage of price. The script tracks successive brick closes, changes direction when price moves far enough to meet its reversal rule, and draws the recent bricks on the visible chart. Optional features include projected levels, direction-based candle coloring, and alerts when the brick trend changes.
For live bars, the current brick may remain unconfirmed until the candle closes; the indicator marks that state separately. The author recommends alerts at bar close for confirmed signals, while alerts during a bar can arrive before confirmation. Dynamic sizing can produce bricks with different sizes over time, and the display is limited to a recent visible region. This is a charting and alerting tool, not a tested trading strategy, and the document reports no trading performance.
Key ideas
- Renko bricks can use fixed, ATR-based, fractional ATR, or percentage sizing.
- The script updates brick direction from price movement and applies a reversal threshold.
- Projected levels, optional candle recoloring, and trend-change alerts support chart interpretation.
- Live bricks can be unconfirmed until the underlying candle closes.
- Dynamic brick sizing and the visible-region display limit affect how the overlay appears.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.