What is Median Renko?

You’ve probably heard of Renko bars but maybe haven’t heard of Median Renko.   Before I comment about them, I’m going to save myself a thousand words.

So this is a 10 pip Median Renko chart, what’s curious is that the colored part of the candles is actually 15 pips. If you look at the first candle to the left of the 1.4240 label, you’ll see that the green candle’s bottom is at 1.4240, it’s top is at 1.4255 and the open of the new bar is at 1.4250. If an up-candle first goes down 7 pips before closing as an up-candle, then you will see a 7 pip wick coming out the bottom.

This helps to make the bars very smooth and eliminates some of the problem with regular renko bars. On regular renko (example 10 pip renko bars), the price can has to go 20 pips down before you see a new bar to the downside. I have been experimenting with renko for a long time now and the problem I have found is that the risk to reward ratio becomes “unpleasant” having to account for the pips to the opposite direction.

I prefer to trade using a combination of time bars and range bars (see next pic), however I’m testing the median renko bars for an ea that I’m working on.

PS. I came across the Median Renko script for Ninjatrader at Big Mike’s Forum (my favorite FX forum).