From a trader’s perspective, selecting the right chart is definitely a crucial step to make a profitable trade. As traders often confuse choosing NinjaTrader Renko bars or candlestick charts, it is important to clarify their differences. While both provide similar signals regarding price action, each has a different way of displaying information related to price movement.

Understanding Chart Types in NinjaTrader

NinjaTrader has several chart types that allow traders to select their trading style based on their individual preferences. These charts show price movement in a graphic format. How these chart types are used can greatly impact how quickly and accurately traders can identify price changes. Using the right type of chart will also help a trader to have more clarity, discipline, and confidence.

What Are Renko Bars in NinjaTrader?

NinjaTrader Renko bars are charts that only use price as a measurement. They do not consider the element of time when displaying price movements. Instead of using a time frame for each new bar formed, a new bar will form when the price has moved by the same amount as indicated by the “brick” size.

This type of structure prevents small daily variations in price from showing up in your charts, and allows a trader to see “real” price changes that are occurring. It creates a clearer look at the trend in question, allowing for better clarity and understanding of price action.

What Are Candlestick Charts in NinjaTrader?

Candlestick charts use time to track price action and represent the price action of a security at a specific interval, for example, one minute to five minutes. They provide a representation of the open & close high and low prices. They also reflect market sentiment.

Candlestick Patterns can be analyzed by the trader to identify volatility, reversals, and short-term momentum. As they represent every single price fluctuation, candlestick charts are frequently used by scalpers, swing traders, and traders who use price action strategies in their trading.

Major Differences – NinjaTrader’s Renko Bars versus Candlestick Charts

The main difference between NinjaTrader’s Renko Bars and Candlestick Charts is the structure. Renko Bars show only the price action. Whereas Candlestick Charts reflect both price and time. Renko Bars eliminate a lot of the market noise that comes along with Candlestick Charts.

• As a result of this filtering out of noise, some traders using Renko Charts may find it slightly lagging when the price reverses quickly. On the other end of the spectrum, while Candlestick Charts will provide a trader with a good amount of detail, pattern recognition, and real-time data, they can become quite cluttered looking during highly volatile (Choppy) Markets.
• One advantage of Renko Bars is that they simplify the decision-making process. Conversely, Candlestick Charts provide a trader with much more depth when determining the intraday behavior of an instrument than Renko Bars do.

Source:https://gettonews.com/ninjatrader-renko-bars-vs-candlesticks-a-traders-perspective/