Renko RSI

The Renko RSI indicator provides a non-repainting Relative Strength Index calculated using an internal Renko engine to filter out market noise and focus on significant price movements. By utilizing price-based bricks rather than time-based bars, this tool helps traders identify cleaner trends and clearer support/resistance levels directly on standard time charts.

Usage

The Renko RSI can be used to identify overbought and oversold conditions without the volatility common in standard RSI calculations. Because Renko filtering removes "noise," the resulting RSI line is often smoother and provides more reliable divergence signals or level crossovers.

Common usage scenarios include:

• Trend Identification: Values sustained above or below the 50-level indicate strong Renko-based momentum.
• Mean Reversion: Monitoring the RSI as it crosses back inside the 80/20 levels for potential reversal entries.
• Filtering: Using the tool alongside a price-based Renko chart to confirm structural breakouts.

Details

Unlike standard TradingView Renko charts that require a specific chart type, this indicator features a built-in Renko engine. It calculates Renko bricks based on the selected "Source" (Close or High/Low) and then applies the RSI formula to these synthetic price movements.

Key technical aspects include:

• Non-Repainting: The logic is designed to remain stable on historical data.
• Dynamic Scaling: When using the ATR method, the brick size is rounded to the security's minimum tick value to ensure realistic price steps.
• Reversal Logic: The engine uses a 2-brick reversal requirement to establish a change in the Renko trend.

Settings

SETUP

• Method: Choose between 'Traditional' (fixed brick size) or 'ATR' (dynamic brick size based on Average True Range).
• Atr Period (ATR): Defines the lookback period for the ATR calculation when the ATR method is selected.
• Brick Size (Traditional): Sets the fixed price movement required to form a new Renko brick.
• Source: Selects the price source for the Renko engine ('close' or 'hl').

RSI

• RSI Length: The number of Renko bricks used to calculate the Relative Strength Index.
• RSI Overbought Level: The upper threshold (default 80) for identifying overextended prices.
• RSI Oversold Level: The lower threshold (default 20) for identifying undervalued prices.

FAQ

How do I access Renko RSI?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Does this change the price bars on my main chart?

No, this indicator runs in a separate pane and does not modify the appearance of your price bars; it displays the RSI values derived from its internal Renko engine.

Why is the default RSI length so short?

The default length is set to 2 because Renko bricks already filter significant amounts of price data. A shorter length on Renko-based data often provides more timely signals compared to standard time-based RSI.