The historical data of a financial instrument can be analyzed in the form of the Renko candlestick pattern, a candlestick pattern that focuses on price movement. This differs from the Japanese candlestick pattern, which focuses on time movement. Brokers typically do not provide historical data as the Renko candlestick pattern via APIs. Brokers usually provide historical data by using the Japanese candlestick pattern, which needs to be converted into the Renko candlestick pattern. A shorter candle interval hints at a localized price movement trend, while a larger candle interval indicates an overall price movement trend. Depending on your algorithmic trading strategy, you may need the candle interval to be small or large. A candle interval of 1 minute is often the smallest available candle interval.
The Renko candlestick pattern works as follows:
- Each candle only has open and close attributes.
- You define a Brick Count (b) setting...