Im quite new to Forex so I would like to get this clarified once and for all. I’m familiar with concept of Candlesticks and Heikin Ashi how they can smooth out the trends(the latter that is). But what Im totally confused about is the the mix up with Range and Renko chart concept.
Please explain - is Range and Renko chart=Heikin Ashi
or Range and Renko chart is something different than the Heikin Ashi. Im testing the Saxo bank Forex trading platform and I can select Heikin Ashi charts - but how does the Range and Renko aspect come into it?
Candlesticks are visual representations of the OHLC(open/high/low/close) price data; candles are time-based.
Heiken-Ashi candlesticks take regular OHLC data and use averages to smooth out price movements, and are also time-based.
Renko charts are time-independent; instead of candlesticks forming after a certain amount of time has passed, a renko bar is created each time price moves a certain distance from the open price.
Range bars operate on the same time-independent principle as HA candles, with one difference: Range bars measure [I]all[/I] price movement, and draw new candles each time a volatility marker is passed. HA measures increments in one direction or another, Range bars measure in both directions simultaneously.
