Business & Investment

Volume Delta Analysis with Custom Symbols for Point & Figure Charts and Key Charts-Analysis and Forecast-January 29, 2021

However, Renko is not the only special chart type that seeks to eliminate the effects of time from actual price actions. The other two well-known types of such charts are Point and Figure (PnF) and Keys. Both can be thought of as a kind of Renko with a “pack” (or “stack”) box.

These time-invariant charts are now also available in MetaTrader 5. PointFigureKagiCharts The utility builds them from tick history and online ticks. And what to guess-it also supports volume delta embedding.You can try the free version of PointFigureKagiCharts demo..

As long as the chart is implemented based on custom symbols (UI, API), Internally it is stored in a standard quote record and rendered as a familiar bar chart on the terminal.

As a result, they do not conform to the classical representations of PnF and Kagi. The X / O columns of PnF and the rectangular wave of the key are not displayed. Instead, it is calculated from stable one-way price fluctuations (as a multiple of the box size) and consists of bars indicating it. This corresponds to the XO column or polygonal line.

The PnF chart looks like this:

The Kagi chart looks like this:

Custom charts like the key to MetaTrader 5

Both show volume delta visualization using CustomVolumeDelta.

There are some important nuances in the operation and configuration of PointFigureKagiCharts.

First, this EA builds PnF or Kagi from ticks. The classic approach usually uses the close or high / low price type. Use ticks for greater accuracy and less ambiguity.

Second, this EA has a different definition of inversion size, especially affecting PnF. Recall how PnF inverted size is explained by popular trading sites.

The inversion distance is the size of the box multiplied by the amount of inversion. Column X is Price does not fall beyond the inversive distance.. Similarly, downtrend stock prices show down column O.Only in the case of Inventory changes direction over inversive distance A new column X is added to the graph.


To have the price reverse and form a new column of X following O, or a new column of O following X The price should be reversed by the reversal amount..A reversal occurs when the price does not move enough to place another X or O in the current X or O column, and then The price moves at least 3 box sizes in the opposite direction (if this is the reversal amount selected)..

Next, let’s take a look at a regular PnF chart. In this case, there is a 3 box inversion distance.

Classic point and figure chart with 3 box reversal

The main function of PnF is clearly shown on the chart, but not so clear from the above wording. Each pair of adjacent columns has a gap between them -After closing the upward X column 1 box “jump” down Until the start of the next O column. After closing the downward O column 1 box “jump” up At the beginning of the next X column.

According to the quoted definition, the flip size of a single box means that all the first boxes in the opposite direction will be displayed immediately after the price of one box returns from the previous top and bottom. Corresponds to an empty box (gap). Therefore, it seems impossible to build PnF with an inversion equal to a single box (because it always maps to the gap). But here’s the trick.

Let’s look again at the graph created for the 3-box inversion. Everywhere where the smallest inversion occurs is highlighted in yellow. These locations show what classic PnF means with the inversion distance of three boxes. Remember that these lines are formed as a whole, shortly after the moment the price is distanced along all of them.

When the price changes direction, it actually moves the previous column from the closed level.Therefore, it was highlighted The inverted column actually contains 4 boxes As you can see. Perhaps the standard description isn’t correct enough, or you’ll have to paint the columns side-by-side with no gaps, which gives you a key-like structure (more on that later). Another option is to adjust the naming convention and consider the chart above as a 4-box inversion. Using this logic, we can infer that the “traditional 1-box inversion” actually covers a distance of 2 boxes. This is why it is physically possible.

The approach using the new naming convention is used in PointFigureKagiCharts.Its parameters Reversal Factor Strictly adheres to the definition of reversal. The price should go back in reverse amount.. So if the box size is 100 points and ReversalFactor = 2, a new column will appear if the price moves more than 2 boxes (200 points) in the opposite direction. Along the range of these two boxes, the first box is “hidden” because it appears as a gap in one box, and the state of the first column consists of one display box.

In other words, ReversalFactor = 2 means that the minimum tangible column size is one box (because the gap always requires one additional “hidden” box).

If you want to reproduce the inversion settings used by other software, you need to add 1 to the Reversal Factor and adjust it. PointFigureKagiCharts..

For PnF, only Reversal Factors greater than 1 make sense. If ReversalFactor = 1, it will switch to Kagi. As you know, the key also represents a time-independent chart. Change direction only when a certain amount of inversion is reached, In this case, the classic key is always fully implemented according to the definition.

PointFigureKagiCharts also supports graphs like Kagi. At the key, there is no gap between adjacent vertical lines-the closing price of the previous bar is always the same as the opening price of the next bar. That’s why it’s important to have a fair Reversal Factor = 1 (which is actually one box, not the two boxes that traditional PnF roughly means).

One of the characteristics of the classic key is that the line thickness changes. The line thickens after the previous extremum occurs.

The graph created by PointFigureKagiCharts is a regular MT5 graph, so the thickness cannot be changed. Instead, you can use various indicators. For example PFC BreakOut Draw an arrow at the point where the up and down breakouts occur.

Key-like custom charts with MetaTrader 5 breakouts

Combined with volume delta analysis, this tool extends the showcase of trading systems based on time-invariant custom charts.

Volume Delta Analysis with Custom Symbols for Point & Figure Charts and Key Charts-Analysis and Forecast-January 29, 2021 Volume Delta Analysis with Custom Symbols for Point & Figure Charts and Key Charts-Analysis and Forecast-January 29, 2021

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