Using Candle Formation Time to Read Renko and Standard Charts
Summary
The document describes an indicator that measures the elapsed seconds between the starts of consecutive candles. On offline Renko charts, the interval represents how long a brick took to form; on standard time-based charts, an unexpectedly long interval can flag a missing or delayed candle. The indicator’s second version also adds a moving average.
The author suggests that fast Renko bricks may accompany decisive price moves, while slower bricks may appear during indecision or ranges, and that a slow brick could precede a turn. These are proposed interpretations rather than tested trading rules. A chart example describes a candle taking 120 seconds to begin after a candle was skipped around a news release. Market closures can also create long readings at period separators, and the document presents no systematic performance analysis or validation of the suggested signals.
Key ideas
- The indicator records elapsed time between consecutive candle starts in seconds.
- Renko readings can show how quickly each brick formed.
- Long intervals on standard charts may reveal missing or delayed candles.
- The suggested link between brick speed and market direction is speculative and is not validated with performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.