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Renko Chart Volume

In its description of Renko charts, Stock Charts does not mention or explain the volume that appears with the charts
How is volume determined?


  • markdmarkd mod
    edited November 2020
    As far as I can see, none of the example charts in the Renko article show volume, and volume is not discussed in text. So, from that I would say, Renko interpretation only considers price.

    On the other hand, as you point out, you can choose to display volume on a Renko chart, and the sizes of the volume bars do change as you select different options for Renko settings (Pts, close or high/low, ATR, and numerical parameters for each).

    There is probably some simple math going on (adding the day's volume to each bar until a new bar forms, or dividing the day's volume if there is more than one bar per day). The question is, does it matter if volume is not relevant to interpreting the chart?

    But, it might be worthwhile to ask Support if they can point you to an explanation, since the documentation appears to be incomplete, or, google "Renko volume" and see what comes up. Several of Stockcharts chosen experts seem to diminish the importance of volume, so maybe the author (if he's one of those experts) chose not to go into it.
  • Something I find value in is using the Volume By Price Overlay. It's available on all of the chart styles including the noiseless charts like Renko, Point and Figure, Three Line Break, Kagi.

    It shows the volume at different price levels. Longer bars indicate where support and resistance may lie further on.

    Great news on the Volume by Price overlay. StockCharts has created a new option for this indication. You can place them on the Left or the Right side of the chart. As they tend to be more important to current action, this puts them closer to the action if you want them on the right side. Oh, I should mention this option is ONLY available in ACP and... Grayson is very excited about it.

    The Volume by Price is pretty straightforward calculation and can enhance your analysis. On the Renko charts, it would be nice if they offered the % as a box size option, like on the Kagi chart but it appears that focus for improvements are not on the legacy site.
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