Optimal Speed

Although renko bars remove the time dynamic from a chart, allowing a trader to focus on price movements, not all renko bars are equal.

Bars that take longer to complete are more likely to denote significant trading ranges and support/resistance areas than bars which form quickly, because the market had to do more work to move through  them. Consequently, being able to track slower bars helps inform entry decisions, stops and price targets.

Optimal Speed marks bars according the following criteria:          

The slowest bar of the unfolding session     

The slowest up bar / down bar of the unfolding session

Slow Bars - bars that took longer than a 20 period (user-adjustable) moving average of speed to close.

Crawl Bars – bars that took longer than 900 seconds (15 minutes, user adjustable) and longer than a 20 period average.

These plots are made automatically to the high/low of a bar as they close –no need to follow separate panels.

In the following chart the faster down bars found support in the slower up bars as the up-move progressed.                 

It can also be prudent to wait for a slower bar before seeking reversal entries.             

You can set your own period lookback and speed parameters to show only those bars that took longer than your desired thresholds.