BaseLine and Graphic Chart No-Standard
BaseLine.
The baseline chart shows price movements relative to a baseline of your choice. This can be very useful for analyzing price fluctuations.
In other terms, it serves to visualize price fluctuations in a bullish & bearish way. Where we would take as possible entries to the bearish zone. Although it should be added that this usually works quite a bit in a lateralized area. Where we can visualize strong support and obvious resistance.
Also, you must have good use of these to be able to place the Line.
Chart No-Standard
Renko:
What is a Renko chart?
A Renko chart is a type of chart, developed by the Japanese, that is constructed using price movement rather than price and standardized time intervals as most charts are.
A new block is created when the price moves to a specific price and each block is placed at a 45 degree angle (up or down) to the previous block. An upward brick is usually white or green in color, while a downward brick is usually black or red in color.
Keys:
Renko charts are made up of bricks that are created at 45-degree angles to each other. Consecutive bricks do not occur side by side.
A brick can have any price, such as $ 0.10, $ 0.50, $ 5, etc. This is called the box size. The size of the box can also be based on the Average True Range (ATR).
Renko charts have a time axis, but the time scale is not fixed. Some bricks may take longer to form than others, depending on how long it takes for the price to move the required box size.
Renko charts filter out noise and help traders see the trend more clearly as all movements that are smaller than the size of the box are filtered out.
Renko charts generally only use closing prices based on the time frame of the chosen chart. For example, if you use a weekly time frame, the weekly closing prices will be used to build the bricks.
The difference between Renko charts and Heikin Ashi charts
Heikin Ashi charts, also developed in Japan, can look similar to Renko charts, as they both show sustained periods of up or down charts highlighting the trend. While Renko charts use a fixed cash amount, Heikin Ashi charts take an average open, high, low, and close for the current and previous time period. Therefore, the size of each box or candle is different and reflects the average price. Heikin Ashi charts are useful for highlighting trends in the same way as Renko charts.
Break line
The line break chart is a "more subtle form of point-and-figure charts, where reversals are decided by the market," as described by a Japanese trader. It is made up of a series of vertical blocks called lines, which use closing prices to indicate the direction of the market.
Line break charts are more commonly known as "three line break" charts. This is because once there are three consecutive lines in the same direction, the closure must "break" the three most recent lines to draw a line in the opposite direction. For example, once there are three consecutive ascending lines, the close would have to break below the low of the previous three ascending lines before a descending line could be drawn.
In this example, the line break graph shows that 3 line breaks must be broken in order to draw a line in the opposite direction to the current trend:
How to make a line break graph
-The line break graphs are generated by adding the new lines, according to the closing position related to the most current high / low values of the line.
-A totally new 'Ascending Line' is added if the Close of the present bar is larger than the highest of the previous 'Ascending Line'.
-A downside reversal is created only if the close of the present bar is less than the lows of the detailed number of previous breaklines.
-An upward reversal is generated only if today's bar close is larger than the highs of the detailed number of previous breaklines.
-An entirely new 'Downline' is added if the Close of today's bar is less than the low of the previous 'Downline'.
-If there is no new high or low, not a line is added.
Line break interval setting
The cost of line breaks is the number of actual lines that the closure would have to "break" to draw a line in the opposite direction. Even though 3 is the most common cost of line breaks, TradeStation allows you to use the 'line feed' setting to specify any number of line breaks.
The interval setting defines the interval of the data used to produce the line break graph. The appropriate interval is dependent on your vision of the market. Users with a short-term vision have the possibility to benefit from the use of smaller intervals (more accuracy / noise). Users with long-term vision have the potential to benefit from wider ranges (less accuracy / noise).
Business interpretation (when Line Break = 3)
-Buy once an upline emerges after 3 or more consecutive downlines.
-Sell once a downline is born after 3 or more consecutive uplines.
-Avoid trading in "non-trending" markets, where ascending and descending lines alternate.
Back-testing and automation of tactics
Tactics have the possibility to test and automate positively on line break charts, only once the applied tactic uses "on close" directives (eg buy this bar on close). When automating a plan on a line break chart, you should choose the smallest possible underlying interval. For additional information on back-testing and automation tactics for advanced chart types.
In summary BreakLine only prioritizes those in accordance with the closing position related to the maximum / minimum values of the most current line and frequently looks for a scenario where the interval of 3 or more consecutive descending lines is broken or the same in bullish. To be able to use this kind of chart, the use of indicators is suggested. And avoid making a trade in a lateral region without even a trend.
Kagi Chart
Definition
Kagi charts are a specific type of chart made up of vertical lines (green up and red down) and small horizontal lines connecting them. Like Renko charts, Kagi charts do not take time into account. Time ranges are left out entirely, as Kagi charts only take price action into account. The word Kagi is derived from the Japanese art of woodblock printing. A Kagi or Key is an L-shaped guide used to properly align the paper for printing. Because of this, Kagi charts are even sometimes referred to as key charts. The premise of Kagi Charts is pretty simple. Essentially, from the starting point (usually the first closing price), the lines are drawn solely based on price action. Ascending lines (also called yang lines) are formed during uptrends, while descending lines (yin lines) are formed during downtrends.
As long as prices continue to move in the current direction, the current ascending line or the current descending line will continue. Once the price is sufficiently reversed (the trader sets the amount of reversal required), a horizontal line is drawn and then a line is drawn in the opposite direction to the previous line, stopping at the new closing price.
Line types
There are five different types of lines that can be drawn within a Kagi chart.
Ascending lines (Yang lines) - are formed during an uptrend.
Descending lines (Yin lines) - are formed during a downtrend.
Projected Ascending Lines - During an intraday time period, a potential ascending line that would form based on the current price (before the actual closing price is set).
Projected Downlines - Over an intraday time period, a potential downline that would form based on the current price (before the actual closing price is set).
Horizontal lines: lines drawn when a line changes direction. When an ascending line changes to a descending line, the horizontal line is considered a shoulder. When a descending line changes to an ascending line, the horizontal line is called the waist.
Line calculation methods
TradingView's Kagi charts use absolute values to determine line reversals. A price movement in the opposite direction from the current line, which exceeds the user-defined investment value, will cause a horizontal shoulder or waist to form along with a new line. The advantage of using absolute values is that it is very simple and it is easy to anticipate when and where new lines will form. The downside is that selecting the correct investment value for a specific instrument will require some experimentation.
Uses of Kagi charts
Kagi graphics are a popular graphics option due to their ease of interpretation. Because they don't take time slots into account at all, they have a way of factoring out associated noise. When price movement is the only variable that matters, the creation of new lines becomes important. Price movements generally must be substantial to register a line change and therefore must always be taken into account. Therefore, small natural price variations that occur naturally over time can be ignored. Some common, everyday applications of Kagi charts are basic line reversal reversal signals, support and resistance discovery, and a sequence-based reversal pattern.
Upline / Downline Reversals: Steve Nison, who brought popularity to Kagi's charts, offered the most basic interpretation of the charts. It's simple, buy in yang, sell in yin. Basically, buy backwards to an up line and sell backwards to a down line.
Support and Resistance: Kagi charts often reveal areas of support and resistance.
Kagi Chart specific options in TradingView
ATR: Cash size is used to measure the volatility of costs and thus estimate its displacement. ... Once we talk about assigning a numerical measure to volatility, the most direct cost to take into account is the range of the foreign exchange market, that is, how much the market moves in a defined period of time.
Average True Range (ATR) - Uses the values caused by the Average True Range (ATR) indicator. The ATR is used to filter out the regular sound or volatility of a financial tool. The ATR procedure “automatically” establishes a good setback distance. Calculate what the ATR cost might be on a regular candlestick chart and then convert this cost into the reversal distance.
In summary, Kagi is a type of chart which your ATR could conceptualize its time span, and it is often used to speculate a viable trend. For this the use of BackTesting is offered quite good. An exercise and in-depth analysis of this Chart even though with the present explanation you can make an initiative.
Point and Figure (PnF) Charts
Definition
Aspect and Figure (PnF) charts are another example of a chart type that is inspired only by cost movements and not by time intervals throughout the chart construction. Such, PnF charts are similar to Renko, Kagi, and line break charts. In an elementary understanding of PnF charts, you can understand that they are made up of a sequence of columns developed from X or O. Columns X represent the increase in costs, while the columns consisting of O denote the fall in costs. Aspect and figure graphics were originally recognized in the early 20th century, prior to the prominence of PC-based graphics. They were a way for technical analysts to plot giant chunks of data in a short amount of time. With the rise of PCs, PnF graphics fell into calamity for quite some time. However, more recently, PnF charts continue to triumph again. Generally, there is a renewed interest in "sound filtering" charts, which focus only on cost movements.
The X's and O's that make up each column occupy a place called Cash Size. The measure of the box is a cost defined by the customer. Once the cost moves far enough in the same direction as the present column, an entirely new X or O is added to that column. Once the cost closes far enough in the opposite direction, a totally new column starts with an X or an O (the opposite of the previous column). The portion that the cost should shift is defined by the investment distance. This cost is created by multiplying the size of the box by another cost determined by the customer, the Investment Ratio. The reversal ratio is the ratio of bricks that the cost would have to shift for a totally new letter to be drawn or a totally new column is considered. Therefore, if the box measure is set to 1 ($ 1) and the reversal ratio is set to 3, then the cost would have to shift by $ 3 for an entirely new letter to be added to the graph.
There are 2 rules regarding letters and columns.
Each column should be an X or an O. There can never be 2 different letters in the same column.
Columns X and Columns O will constantly alternate. You will never see 2 X columns next to each other and vice versa.
Box types
There are 4 different types of lines that have the ability to draw on a PnF chart.
Bullish bars: they are formed along an uptrend.
Descending bars: they are formed along a downtrend.
Projected Rising Bars - Over an intraday time span, a potential rising line that would form into today's cost functionality (before the actual closing cost is set).
Projected Descending Bars - Over an intraday time span, a viable downline that would form into today's cost functionality (before the actual closing cost is set).
Cash calculation procedures
There are 2 different procedures for calculating the reversal distance:
Average True Range (ATR) - Uses the values caused by the Average True Range (ATR) indicator. The ATR is used to filter out the common sound or volatility of a financial tool. The ATR procedure “automatically” establishes a good setback distance. Calculate what the ATR cost might be on a regular candlestick chart and then convert this cost into the reversal distance.
Classic - Uses an absolute cost predefined by the customer for the size of the box and the investment ratio. The novel boxes
Personally, I don't use this Chart too much..
Range:
This type of candle is only defined under the price value and the range set by the user. Similar to Bars, with the difference that you can set the price range you want as a user.
-
- Summary of all explained charts, to personal opinion.
Bars: Measurement of Charts in a given period of time. Prioritizing the Closing Price.
- Candles: Japanese candle that considers the Open, Low, High, Close. In bullish candle. And in Bearish Candle Open, High, Low, Close. Mostly the most used to identify patterns.
- Hollow Candles: Candle that helps to identify Candle Patterns based on Hollow and Full Candles.
- Heikin Ashi: It is usually used to speculate based on the average of the previous candles to identify a possible trend mostly used in Buy And Sell indicators but does not indicate the real price of the asset.
- Line: Type of chart in which you use Lines based on the closing price of the asset. Useful to identify patterns if you have the idea that only the closing price matters.
- Area: Similar to Line based on asset growth.
- BaseLine: It is a type of graph in which a Line is used to identify a low zone where it could be an entry and a high zone where an upward Breakout (Trend changing) or profit taking could be visualized.
- Renko, Line Break, Kagi, Point Figure, Range: Used based on good use of Backtesting based on most price action. In averages or range (ATR or Traditional of these). They are usually quite useful to identify a possible change in the trend in the Long Term.
ATR: Box Size
Candle Type Settings:
- Rising Bars: Change the color and outline of the rising bars.
- Bars Down: Change the color and outline of bars down.
- Bars Projected Up - Change the color and outline of bars projected upwards.
- Downward Projected Bars - Change the color and outline of downward projected bars.
- Investment Amount: This value sets the size of a move required to draw a new line in a different direction.
- ATR: Box Size
- Box Size: ATR or Traditional.
- Previous Close Value: Mostly Disabled.
- Adjust Data Dividens: This is the determined value of the asset in a Data Base division.
- Extended Hours: This only applies if you use Intraday which gives you certain extension hours.
When placing the Extend Hours you should get lines that separate in the period of 1d and only the hour graph works. Useful for those who perform Intraday.
The baseline chart shows price movements relative to a baseline of your choice. This can be very useful for analyzing price fluctuations.
In other terms, it serves to visualize price fluctuations in a bullish & bearish way. Where we would take as possible entries to the bearish zone. Although it should be added that this usually works quite a bit in a lateralized area. Where we can visualize strong support and obvious resistance.
Also, you must have good use of these to be able to place the Line.
Chart No-Standard
Renko:
What is a Renko chart?
A Renko chart is a type of chart, developed by the Japanese, that is constructed using price movement rather than price and standardized time intervals as most charts are.
A new block is created when the price moves to a specific price and each block is placed at a 45 degree angle (up or down) to the previous block. An upward brick is usually white or green in color, while a downward brick is usually black or red in color.
Keys:
Renko charts are made up of bricks that are created at 45-degree angles to each other. Consecutive bricks do not occur side by side.
A brick can have any price, such as $ 0.10, $ 0.50, $ 5, etc. This is called the box size. The size of the box can also be based on the Average True Range (ATR).
Renko charts have a time axis, but the time scale is not fixed. Some bricks may take longer to form than others, depending on how long it takes for the price to move the required box size.
Renko charts filter out noise and help traders see the trend more clearly as all movements that are smaller than the size of the box are filtered out.
Renko charts generally only use closing prices based on the time frame of the chosen chart. For example, if you use a weekly time frame, the weekly closing prices will be used to build the bricks.
The difference between Renko charts and Heikin Ashi charts
Heikin Ashi charts, also developed in Japan, can look similar to Renko charts, as they both show sustained periods of up or down charts highlighting the trend. While Renko charts use a fixed cash amount, Heikin Ashi charts take an average open, high, low, and close for the current and previous time period. Therefore, the size of each box or candle is different and reflects the average price. Heikin Ashi charts are useful for highlighting trends in the same way as Renko charts.
Break line
The line break chart is a "more subtle form of point-and-figure charts, where reversals are decided by the market," as described by a Japanese trader. It is made up of a series of vertical blocks called lines, which use closing prices to indicate the direction of the market.
Line break charts are more commonly known as "three line break" charts. This is because once there are three consecutive lines in the same direction, the closure must "break" the three most recent lines to draw a line in the opposite direction. For example, once there are three consecutive ascending lines, the close would have to break below the low of the previous three ascending lines before a descending line could be drawn.
In this example, the line break graph shows that 3 line breaks must be broken in order to draw a line in the opposite direction to the current trend:
How to make a line break graph
-The line break graphs are generated by adding the new lines, according to the closing position related to the most current high / low values of the line.
-A totally new 'Ascending Line' is added if the Close of the present bar is larger than the highest of the previous 'Ascending Line'.
-A downside reversal is created only if the close of the present bar is less than the lows of the detailed number of previous breaklines.
-An upward reversal is generated only if today's bar close is larger than the highs of the detailed number of previous breaklines.
-An entirely new 'Downline' is added if the Close of today's bar is less than the low of the previous 'Downline'.
-If there is no new high or low, not a line is added.
Line break interval setting
The cost of line breaks is the number of actual lines that the closure would have to "break" to draw a line in the opposite direction. Even though 3 is the most common cost of line breaks, TradeStation allows you to use the 'line feed' setting to specify any number of line breaks.
The interval setting defines the interval of the data used to produce the line break graph. The appropriate interval is dependent on your vision of the market. Users with a short-term vision have the possibility to benefit from the use of smaller intervals (more accuracy / noise). Users with long-term vision have the potential to benefit from wider ranges (less accuracy / noise).
Business interpretation (when Line Break = 3)
-Buy once an upline emerges after 3 or more consecutive downlines.
-Sell once a downline is born after 3 or more consecutive uplines.
-Avoid trading in "non-trending" markets, where ascending and descending lines alternate.
Back-testing and automation of tactics
Tactics have the possibility to test and automate positively on line break charts, only once the applied tactic uses "on close" directives (eg buy this bar on close). When automating a plan on a line break chart, you should choose the smallest possible underlying interval. For additional information on back-testing and automation tactics for advanced chart types.
In summary BreakLine only prioritizes those in accordance with the closing position related to the maximum / minimum values of the most current line and frequently looks for a scenario where the interval of 3 or more consecutive descending lines is broken or the same in bullish. To be able to use this kind of chart, the use of indicators is suggested. And avoid making a trade in a lateral region without even a trend.
Kagi Chart
Definition
Kagi charts are a specific type of chart made up of vertical lines (green up and red down) and small horizontal lines connecting them. Like Renko charts, Kagi charts do not take time into account. Time ranges are left out entirely, as Kagi charts only take price action into account. The word Kagi is derived from the Japanese art of woodblock printing. A Kagi or Key is an L-shaped guide used to properly align the paper for printing. Because of this, Kagi charts are even sometimes referred to as key charts. The premise of Kagi Charts is pretty simple. Essentially, from the starting point (usually the first closing price), the lines are drawn solely based on price action. Ascending lines (also called yang lines) are formed during uptrends, while descending lines (yin lines) are formed during downtrends.
As long as prices continue to move in the current direction, the current ascending line or the current descending line will continue. Once the price is sufficiently reversed (the trader sets the amount of reversal required), a horizontal line is drawn and then a line is drawn in the opposite direction to the previous line, stopping at the new closing price.
Line types
There are five different types of lines that can be drawn within a Kagi chart.
Ascending lines (Yang lines) - are formed during an uptrend.
Descending lines (Yin lines) - are formed during a downtrend.
Projected Ascending Lines - During an intraday time period, a potential ascending line that would form based on the current price (before the actual closing price is set).
Projected Downlines - Over an intraday time period, a potential downline that would form based on the current price (before the actual closing price is set).
Horizontal lines: lines drawn when a line changes direction. When an ascending line changes to a descending line, the horizontal line is considered a shoulder. When a descending line changes to an ascending line, the horizontal line is called the waist.
Line calculation methods
TradingView's Kagi charts use absolute values to determine line reversals. A price movement in the opposite direction from the current line, which exceeds the user-defined investment value, will cause a horizontal shoulder or waist to form along with a new line. The advantage of using absolute values is that it is very simple and it is easy to anticipate when and where new lines will form. The downside is that selecting the correct investment value for a specific instrument will require some experimentation.
Uses of Kagi charts
Kagi graphics are a popular graphics option due to their ease of interpretation. Because they don't take time slots into account at all, they have a way of factoring out associated noise. When price movement is the only variable that matters, the creation of new lines becomes important. Price movements generally must be substantial to register a line change and therefore must always be taken into account. Therefore, small natural price variations that occur naturally over time can be ignored. Some common, everyday applications of Kagi charts are basic line reversal reversal signals, support and resistance discovery, and a sequence-based reversal pattern.
Upline / Downline Reversals: Steve Nison, who brought popularity to Kagi's charts, offered the most basic interpretation of the charts. It's simple, buy in yang, sell in yin. Basically, buy backwards to an up line and sell backwards to a down line.
Support and Resistance: Kagi charts often reveal areas of support and resistance.
Kagi Chart specific options in TradingView
ATR: Cash size is used to measure the volatility of costs and thus estimate its displacement. ... Once we talk about assigning a numerical measure to volatility, the most direct cost to take into account is the range of the foreign exchange market, that is, how much the market moves in a defined period of time.
Average True Range (ATR) - Uses the values caused by the Average True Range (ATR) indicator. The ATR is used to filter out the regular sound or volatility of a financial tool. The ATR procedure “automatically” establishes a good setback distance. Calculate what the ATR cost might be on a regular candlestick chart and then convert this cost into the reversal distance.
In summary, Kagi is a type of chart which your ATR could conceptualize its time span, and it is often used to speculate a viable trend. For this the use of BackTesting is offered quite good. An exercise and in-depth analysis of this Chart even though with the present explanation you can make an initiative.
Point and Figure (PnF) Charts
Definition
Aspect and Figure (PnF) charts are another example of a chart type that is inspired only by cost movements and not by time intervals throughout the chart construction. Such, PnF charts are similar to Renko, Kagi, and line break charts. In an elementary understanding of PnF charts, you can understand that they are made up of a sequence of columns developed from X or O. Columns X represent the increase in costs, while the columns consisting of O denote the fall in costs. Aspect and figure graphics were originally recognized in the early 20th century, prior to the prominence of PC-based graphics. They were a way for technical analysts to plot giant chunks of data in a short amount of time. With the rise of PCs, PnF graphics fell into calamity for quite some time. However, more recently, PnF charts continue to triumph again. Generally, there is a renewed interest in "sound filtering" charts, which focus only on cost movements.
The X's and O's that make up each column occupy a place called Cash Size. The measure of the box is a cost defined by the customer. Once the cost moves far enough in the same direction as the present column, an entirely new X or O is added to that column. Once the cost closes far enough in the opposite direction, a totally new column starts with an X or an O (the opposite of the previous column). The portion that the cost should shift is defined by the investment distance. This cost is created by multiplying the size of the box by another cost determined by the customer, the Investment Ratio. The reversal ratio is the ratio of bricks that the cost would have to shift for a totally new letter to be drawn or a totally new column is considered. Therefore, if the box measure is set to 1 ($ 1) and the reversal ratio is set to 3, then the cost would have to shift by $ 3 for an entirely new letter to be added to the graph.
There are 2 rules regarding letters and columns.
Each column should be an X or an O. There can never be 2 different letters in the same column.
Columns X and Columns O will constantly alternate. You will never see 2 X columns next to each other and vice versa.
Box types
There are 4 different types of lines that have the ability to draw on a PnF chart.
Bullish bars: they are formed along an uptrend.
Descending bars: they are formed along a downtrend.
Projected Rising Bars - Over an intraday time span, a potential rising line that would form into today's cost functionality (before the actual closing cost is set).
Projected Descending Bars - Over an intraday time span, a viable downline that would form into today's cost functionality (before the actual closing cost is set).
Cash calculation procedures
There are 2 different procedures for calculating the reversal distance:
Average True Range (ATR) - Uses the values caused by the Average True Range (ATR) indicator. The ATR is used to filter out the common sound or volatility of a financial tool. The ATR procedure “automatically” establishes a good setback distance. Calculate what the ATR cost might be on a regular candlestick chart and then convert this cost into the reversal distance.
Classic - Uses an absolute cost predefined by the customer for the size of the box and the investment ratio. The novel boxes
Personally, I don't use this Chart too much..
Range:
This type of candle is only defined under the price value and the range set by the user. Similar to Bars, with the difference that you can set the price range you want as a user.
-
- Summary of all explained charts, to personal opinion.
Bars: Measurement of Charts in a given period of time. Prioritizing the Closing Price.
- Candles: Japanese candle that considers the Open, Low, High, Close. In bullish candle. And in Bearish Candle Open, High, Low, Close. Mostly the most used to identify patterns.
- Hollow Candles: Candle that helps to identify Candle Patterns based on Hollow and Full Candles.
- Heikin Ashi: It is usually used to speculate based on the average of the previous candles to identify a possible trend mostly used in Buy And Sell indicators but does not indicate the real price of the asset.
- Line: Type of chart in which you use Lines based on the closing price of the asset. Useful to identify patterns if you have the idea that only the closing price matters.
- Area: Similar to Line based on asset growth.
- BaseLine: It is a type of graph in which a Line is used to identify a low zone where it could be an entry and a high zone where an upward Breakout (Trend changing) or profit taking could be visualized.
- Renko, Line Break, Kagi, Point Figure, Range: Used based on good use of Backtesting based on most price action. In averages or range (ATR or Traditional of these). They are usually quite useful to identify a possible change in the trend in the Long Term.
ATR: Box Size
Candle Type Settings:
- Rising Bars: Change the color and outline of the rising bars.
- Bars Down: Change the color and outline of bars down.
- Bars Projected Up - Change the color and outline of bars projected upwards.
- Downward Projected Bars - Change the color and outline of downward projected bars.
- Investment Amount: This value sets the size of a move required to draw a new line in a different direction.
- ATR: Box Size
- Box Size: ATR or Traditional.
- Previous Close Value: Mostly Disabled.
- Adjust Data Dividens: This is the determined value of the asset in a Data Base division.
- Extended Hours: This only applies if you use Intraday which gives you certain extension hours.
When placing the Extend Hours you should get lines that separate in the period of 1d and only the hour graph works. Useful for those who perform Intraday.
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