Multi-Pane Chart Types - Multi-Pane Charts

2.4 Multi-Pane Charts

2.4.1 Multi-Pane Chart Types

2.4.1.1 Bar

A bar shows a vertical line representing the high to low trading range for the bar. Tick marks on the left and right side of the vertical bar mark the open and closing price of the bar. Bars are color coded with an up color or down color based on whether the closing price of the bar is higher or lower than the closing price of the prior bar.

Colors can be set by changing the bar preferences. Double click the line to access the preferences.

2.4.1.2 Bi-Color Line

The Bi-Color Line style is very similar to the Continuous Line style except it uses two colors. Each line segment, connecting prices, will be drawn based on whether price increased or decreased from the previous price. If price increases, the segment will be drawn in the up color. If price decreases, the segment will be drawn in the down color.

Colors can be set by changing the line preferences. Double click the line to access the preferences.

2.4.1.3 Candlestick

A candlestick chart shows each bar as a color coded rectangle (called the candle body) representing the range of trading between the open price and closing price of the period. If the closing price is higher than the opening price, the candle is colored with the user specified up color, otherwise, the down color.

Colors can be set by changing the line preferences. Double click the line to access the preferences.

2.4.1.4 Connected Line

For line graphs, the price used to draw the line may be the open, high, low, last, the median of high and low , or the median of high, low, last and others shown in the list below.

2.4.1.5 Continuous Line

A continuous line graph is simply a line drawn between each of the price points for the selected price type. A connected line adds dots at each price point. Line graphs may be drawn with one of three line thicknesses and in a user specified color.

Line graphs of different price types for the same instrument may be drawn in a chart window, either in the same sub window or each in its own sub window.

2.4.1.6 Histogram

For histogram charts, the price used to draw the bar may be the open, high, low, last, the median of high and low , or the median of high, low, last and others shown in the list below. It is colored based upon

whether current bar is higher or lower than the previous bar. This will of course depend on what is used to draw the bar (taken from the list below).

2.4.1.7 Invisible

This chart type does not display any price information on the chart, HOWEVER, it is available for calculation. The primary method that this gets applied with is when someone wants to add an indicator to a chart but have it show with different price data other than what is actually showing on the screen.

The idea is to have an indicator computed off of underlying data that you really do not want to see. Multiple invisible instruments can be added to the chart.

2.4.1.8 Percent Change Bar

This chart type shows the percentage up or down a given market is for the time period specified on the chart. Right click the chart, choose Preferences | Chart | View Period tab. This is where you can set the time period being viewed and also set the begin time. It is popular to view a daily chart and have it begin at the beginning of the current year.

2.4.1.9 Percent Change Candle

2.4.1.10 Percent Change Line

2.4.1.11 Wickless Candle

Wickless Candles will result in the traditional Renko "boxed" look and feel. It will simply chart a box from open to close. Users may opt for the

"Candlestick" style, which will not only give the open/close box, but provides additional information with the candle wicks representing the high and low of each bar.

2.4.1.12 Point and Figure

A large sampling of user generated PNF charts can be found here. Some of these charts have chart definitions which can be imported.

· Point and Figure charts update dynamically tick by tick.

· True Point and Figure bars built off tick data (or 1-min data)

· Build P&F charts using any combination of box size and reversal size

· One Box Reversal charts allow Xs and Os to share same column

· Full library of over 150 built-in technical indicators to P&F charts, including Volume Breakdown, MPD, and TPO Indicators

· Full library of drawing tools, including 45 degree trendlines, reference lines, notes, Fibonacci, pivots, regression, and much more

· Add custom indicators by writing in MarketDelta's RTL language (Targets)

· Write signals and add markers and add alerts to P&F charts (Double &

Triple Tops)

· Write trading systems and backtest historical P&F data

· Flexible scaling, zooming, scrolling, and panning with drag and drop

· Keyboard and mouse wheel shortcuts for convenient manipulation of P&F charts

· Floating charts that may be dragged outside the MarketDelta® main window

· View data from other periodicities (minute bars, tickbars, etc) on P&F charts

· Other helpful tools such as multi-chart highlighter, crosshairs, info box, custom buttons, and multi-linking

· Autotrading available via the Trading System Indicator to limited brokerages

· Quickly switch chart between P&F and other periodicities (tickbar, minute bar, volume bar, daily, etc)

· All in one chart: P&F, Market Profile® (TPO indicator), Delta (Volume Breakdown Indicator), Other Periodicity Data, drawing tools, historical indicators, markers, alerts, and much more

· Apply the P&F periodicity to a Footprint chart for a more detailed look inside the bar and to see where volume is developing intrabar. See this image and download the chart definition.

Creating and Changing

Point and Figure is now supported in multi-pane charts as a periodicity (and a drawing style). This significant enhancement marries the

powerful features of the traditional chart window (indicators, buttons, multi-panes, etc) with this unique drawing style.

The Chart Setup Wizard has been revised to create Point and Figure charts with user selected indicators and moving averages. The wizard creates the Point and Figure chart with default reversal criteria of 3

boxes and box size determined automatically from the instrument setup.

You can define the instrument setup by pressing ALT+A on your keyboard and setting the display format.

You can also use the periodicity menu to specify a specific box size and reversal criteria. Choose the 0.25x3 PNF sample periodicity from the periodicity menu and adjust the numbers if you wish. Note that the entered text must be followed by a space and the letter P, e.g. "0.1x3 PNF" to be recognized as a point and figure periodicity.

You can also set the boxes to be square to create a symmetrical grid.

To do this double click the price scale and see the settings below.

Using Point and Figure in the RTL Language

Tokens have been added to RTL to support the PNF Periodicity. Scans, signals, and custom indicators operating with PNF periodic data can use these token to inspect the state of the PNF column for any PNF bar, the box size and the reversal criteria. To test the state of the PNF use the PNF_STATE token. Constants PNF_UP and PNF_DOWN were added to enable expressions such as "PNF_STATE == PNF_UP" or "PNF_STATE ==

PNF_DOWN". The PNF_BOX token gives you the box size of the PNF data for the instrument, PNF_REV gives you the reversal criteria (the number of boxes).

2.4.1.13 Renko

How to built Renko charts.

A large sampling of user generated Renko charts can be found here.

Some of these charts have chart definitions which can be imported.

· Renko charts update dynamically tick by tick.

· True Renko square boxes/bricks built off tick data (or 1-min data)

· Build Renko charts using any box size

· Full library of over 150 built-in technical indicators to Renko charts, including Volume Breakdown, MPD, and TPO Indicators

· Full library of drawing tools, including 45 degree trendlines, reference lines, notes, Fibonacci, pivots, regression, and much more

· Add custom indicators writing in MarketDelta's RTL language (Targets)

· Write signals, add markers and alerts to Renko charts

· Write trading systems and backtest historical Renko data

· Flexible scaling, zooming, scrolling, and panning with drag and drop

· Keyboard and mouse wheel shortcuts for convenient manipulation of Renko charts

· Review historical Renko charts, going back weeks, months, or even years (varies with data vendor)

· Floating charts that may be dragged outside the MarketDelta® main window

· View data from other periodicities (minute bars, tickbars, etc) on Renko charts

· Other helpful tools such as multi-chart highlighter, crosshairs, infobox, custom buttons, and multi-linking

· Autotrading available via the Trading System Indicator to limited brokerages

· Quickly switch chart between Renko and other periodicities (P&F, tickbar, minute bar, volume bar, daily, etc)

· All in one chart: Renko, P&F, Market Profile® (TPO indicator), Delta (Volume Breakdown Indicator), Other Periodicity Data, drawing tools, historical indicators, markers, alerts, and much more

Overview of Renko

Renko chart is thought to have acquired its name from the Japanese word for brick, "renga". In Renko charts, a box (or "brick" as they're called) is drawn in the direction of the prior move only if prices move by a minimum amount (i.e., the box size). The bricks are always equal in size. The box size is specified by the user, and can be any value

greater than or equal to the tick increment of the symbol being charted (minimum of 0.25 for ES). Similar to Range Bars or Point & Figure

charts, the frequency of Renko Bars is driven by price movement, not by time.

Interpretation

Basic trend reversals are signaled with the emergence of a red or green box/brick. A new green brick indicates the beginning of a new uptrend. A new red brick indicates the beginning of a new downtrend. Since the Renko chart is a trend following technique, there are times when Renko charts produce whipsaws, giving signals near the end of short-lived trends. However, the expectation with a trend following technique is that it allows you to ride the major portion of significant trends.

Renko charts can also be very helpful when determining support and resistance levels since they isolates the underlying price trend by

filtering out minor price changes. Renko charts are also very effective at identifying key support or resistance levels.

Renko Charting in MarketDelta®

Renko is now supported in traditional charts as a periodicity (and a drawing style). This significant enhancement marries the powerful features of the traditional chart window (indicators, buttons, multi-panes, etc) with this unique charting style.

To change any existing chart to a Renko chart, simply double-click on the instrument (bars or candles) in an existing chart, and setup the chart with a Style of "Wickless Candles". Wickless Candles will result in the traditional Renko "boxed" look and feel. It will simply chart a box from open to close. These boxes are often referred to as "bricks".

Users may opt for the "Candlestick" style, which will not only give the open/close box, but provides additional information with the candle wicks representing the high and low of each bar.

The Periodicity Control now has a new option of "Renko" just below the

"Point and Figure" choice. Select this option, then provide a box size in the space provided below. The box size can range from the tick

increment of the instrument (0.25 for ES) to multiples of the tick increment (0.5, 1, 2, etc).

In order to force each Renko box to be drawn perfectly square (the height of each box equals the width), a new vertical scale option has been added. Double-click in the vertical scale to bring up the vertical scale preferences. Select the 3rd Scaling Method specifying "Automatic scaling with Square boxes".

This option will keep the boxes square regardless of changes in chart dimensions, scrolling, or zooming. Some user may continue to prefer the Automatic scaling method, which tends to make better use of the vertical space in a chart. Once you've setup your scaling as "Square Boxes", you can easily toggle to automatic by clicking the "RA" until it becomes an "A", and toggle back to square boxes by again clicking on the "A" until it turns back into an "RA".

MarketDelta® can be configure so that Renko bars reset at the beginning of each session (fresh start), or continue across session boundaries. The fresh start option is generally used for symbols that might gap heavily between session (and result in a long sequence of boxes to fill the gap). On symbols like ES that trade around the clock, the fresh start option is generally not needed or preferred. Go to

"Setup: Preferences: Charts: General". If the "Continuous Tick & Volume Bars" checkbox is UNchecked, Renko charts will operate in "fresh start"

mode. If it is unchecked, Renko charts will operate in "carry over"

mode.

Tokens have been added to RTL to support Renko. Scans, signals, and custom indicators operating with Renko periodic data can use these token to inspect the state and box size of the Renko boxes. To test the state of the PNF box use the RENKO_STATE token. Constants

RENKO_UP and RENKO_DOWN were added to enable expressions such as "RENKO_STATE = RENKO_UP" or "RENKO_STATE = RENKO_DOWN".

The RENKO_BOX token gives you the box size of the Renko data.

As an example, the following signal would look for 3 consecutive up boxes followed by a down box:

RENKO_STATE.3 = RENKO_UP AND RENKO_STATE.2 = RENKO_UP AND RENKO_STATE.1 = RENKO_UP AND RENKO_STATE = RENKO_DOWN