Volume-Gated Renko Bricks with ATR-Based Sizing

Summary

This ProRealTime indicator constructs Renko bricks when price moves beyond the current brick boundary and accumulated trading volume since the previous brick meets a threshold. Users can set a fixed brick size and volume threshold, or enable automatic sizing: brick size is based on twice a 14-period average true range, while the automatic volume option uses an average of volume. The display can also color the chart background according to the current brick direction and draw wicks.

The document provides indicator code and describes its parameters, but offers no performance tests or evidence that the volume gate improves signals. Its settings are experimental and may need adjustment for the instrument and timeframe. Renko construction and volume data can behave differently across markets and platforms, so the code’s behavior should be checked in the intended environment before relying on it.

Key ideas

• A new Renko brick requires a qualifying price move and enough accumulated volume since the prior brick.
• Brick size can be fixed or set automatically using twice a 14-period average true range.
• Automatic volume sizing uses an average of volume in place of a fixed threshold.
• Brick direction can be shown through candle colors and optional chart background shading.
• The indicator is described as experimental and is not supported by performance evidence.

Tags

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