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2014issue C1050-54

Construction checklist for a brick-chart crossover and same-session breakout

Platform notes recode a brick chart, two same-length averages, and a long or flat crossover, then record a companion same-session breakout. Editorial reading: lock the brick, the two averages, and the fill bar before a recode is allowed to stand in for a test.

  • The recode is a three-part sequence: a modified or standard brick chart, two same-length moving averages, and a long or flat crossover.
  • The fast average is an eight-period simple average of brick-based typical price; the slow average is an eight-period simple average of heikin-ashi-recalculation prices, so it lags at the same length.
  • Documented rules open a long when the fast average crosses above the slow average and flatten when it crosses back below; one implementation fills on the next open of the underlying range chart.
  • The companion breakout-system arms only after a range-compression-filter, enters on a break of that day's high or low, and flattens at the close.
Entries in this reading3 entries
Current trackRenko chart15 readingsBreakout system93 readingsMoving-average crossover126 readings

The platform notes recode a three-part construction sequence: a modified or standard brick chart, two same-length moving averages, and a long or flat crossover procedure. The same notes also record a companion same-session breakout and a spreadsheet rewrite of the average-spread filter.

The three-part construction sequence

A Renko chart prints only after price travels a chosen box size, so time is dropped as the bar clock. The notes allow that brick chart to be modified or standard, and they place it first in the sequence.

The moving-average-crossover then uses two eight-period simple averages. The fast average is taken from brick-based typical price. The slow average is taken from heikin-ashi-recalculation of each bar's open, high, low, and close. That rewrite makes an equal-length average lag its unsmoothed twin.

The documented long and flat rules

The documented crossover rules open a long when the fast average crosses above the slow average. They flatten that long when the fast average crosses back below. The notes describe a long or flat flip, not a reversing short.

Fill on the next base-chart open

One implementation generates the signal on the brick chart, then places the trade and fill on the open of the next bar of the underlying range chart. That next open is the base-chart-fill.

Editorial reading: the signal print and the fill bar are separate locks. Mixing them turns a recode into a different procedure.

A same-session breakout after range compression

A companion same-session breakout-system waits for a compressed prior range, then enters on a break of that day's high or low and flattens at the close.

The range-compression-filter arms the procedure only after the prior day's high-to-low range, divided by the close, sits at least half a standard deviation below its lookback average.

A rewrite of the average-spread filter

One spreadsheet rewrite replaces a fixed 0.8 average-spread threshold with a user-chosen percentage of the largest absolute spread between the two averages. A signal-threshold can therefore be a fixed value or a user-chosen share of the largest observed spread.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
5 of 14 in the Renko chart track
201560-61 pp.Next on Renko chartOptimizing virtual bar size as a trend filterTime, range, volume, tick, and Renko bars can host trades inside a larger clock bar, so bar type is a testable parameter rather than a display default.
All readings on this track · 14 readings
  1. 2007Renko brick construction and breakout rules
  2. 2014Modified Renko brick size from tick inputs
  3. 2014Renko brick increment and open construction
  4. 2014Modified renko construction with RSI bands and a trend filter
  5. 2014Construction checklist for a brick-chart crossover and same-session breakout
  6. 2015Optimizing virtual bar size as a trend filter
  7. 2015Constructing Renko energy bands so support and resistance arrive as pre-marked leans
  8. 2018Five-rule entries and exits with Elliott waves and Renko bricks
  9. 2018Modified Renko charts as a filter for fake breakouts
  10. 2018V-Trade reversal, retrace, and continuation rules
  11. 2018A finished impulse, a Fibonacci target, and a reversing Renko brick as one test
  12. 2019Brick sampling changes what a volatility envelope can show
  13. 2019A consecutive Renko brick count as a mechanical entry-exit procedure
  14. 2019Renko brick scale as a falsifiable trend hypothesis
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