Refined filters in Renko EA version 2
The second iteration of the open source Renko EA* has a set of more refined filters which can be used for the entries or exits. The power of linear regression lines used as filters The linear regression lines seem to be doing a very good job in filtering out ranges and pullbacks. This eliminateds most of the false entry signals that would normally be taken durrign consolidation periods after a strong move as well as those pesky pullback traps. The Turbo Renko chart shown below illustrates how a set of two linear regression lines MA2 (blue) and MA3 (white) work as filters for the 2 consecutive renko entry signals. MA1 is used as an exit filter. The settings of MA2 on the renko chart are: Show the second MA: Yes 2nd MA draw as Line 2nd MA period: 86 2nd MA method: Linear regression 2nd MA apply to Close price 2nd MA shift: 0 2nd MA show price label: No The settings of MA3 on the renko chart are: Third second MA: Yes 3rd MA draw as Line 3rd MA period: 20 3rd MA method: Linea