Reverse Engineer the math for an Indicator

[danerius]

Hi

I stumbled upon this indicator and its based on an ATR adjusted Renko. Id really like to know the math behind it? How it readjusts the Renko Bar Size to the ATR Value?

Its just that Ive completely forgotten where I found it. So I cant check.

My question is? Can someone have a look at the code and maybe figure out the math for it?

Thanks and regards /Bo

0_1540803956276_Renko_v11.mq4

[danerius]

I extracted the code. Here goes:

//+------------------------------------------------------------------+
//|                                                     Renko_v1.mq4 |
//|                           Copyright © 2005, TrendLaboratory Ltd. |
//|                                       E-mail: igorad2004@list.ru |
//|                                            Many Thanks To Konkop |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, TrendLaboratory Ltd."
#property link      "E-mail: igorad2004@list.ru"

#property indicator_chart_window
#property indicator_buffers 2
#property indicator_color1 Aqua
#property indicator_color2 Magenta
//---- input parameters
extern int PeriodATR=10;
extern double Katr=1.00;
//---- indicator buffers
double UpBuffer[];
double DnBuffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function                         |
//+------------------------------------------------------------------+
  int init()
  {
   string short_name;
//---- indicator line
   SetIndexStyle(0,DRAW_LINE);
   SetIndexStyle(1,DRAW_LINE);
   SetIndexBuffer(0,UpBuffer);
   SetIndexBuffer(1,DnBuffer);
   IndicatorDigits(MarketInfo(Symbol(),MODE_DIGITS));
//---- name for DataWindow and indicator subwindow label
   short_name="Renko("+PeriodATR+","+Katr+")";
   IndicatorShortName(short_name);
   SetIndexLabel(0,"Renko");
//----
   SetIndexDrawBegin(0,PeriodATR);
//----
   return(0);
  }

//+------------------------------------------------------------------+
//| Renko_v1                                                        |
//+------------------------------------------------------------------+
int start()
  {
   int i,shift;
   double Up,Dn,Brick,AvgRange,dK,ATR,BrickUp,BrickDn;
	
   for (shift=Bars-1-PeriodATR;shift>=0;shift--)
   {	
	AvgRange=0;
	for (i=PeriodATR-1;i>=0;i--)
	{ 
                dK = 1;
                AvgRange+=dK*MathAbs(High[i+shift]-Low[i+shift]);
         }
	ATR = AvgRange/PeriodATR;
	
	if (shift==Bars-1-PeriodATR)
	{
	    Up=High[shift];
	    Dn=Low[shift];
	    Brick=Katr*(High[shift]-Low[shift]);
	} 
	
	if (shift<Bars-1-PeriodATR)  
	{
            if (Close[shift] > Up + Brick)
		{
		    if (Brick==0) 
		        BrickUp=0;
		    else
		        BrickUp=MathRound((Close[shift]-Up)/Brick)*Brick;	
		
		    Up = Up + BrickUp;
		    Brick = Katr*ATR;
		    Dn = Up - Brick;
		    BrickDn = 0;
		}
		
		if (Close[shift] < Dn - Brick) 
		{
		    if (Brick==0) 
		        BrickDn=0;
		    else
		        BrickDn=MathRound((Dn-Close[shift])/Brick)*Brick;
		
		    Dn = Dn - BrickDn;
		    Brick = Katr*ATR;
		    Up = Dn + Brick;
		    BrickUp = 0;
		}
	}
	UpBuffer[shift]=Up;
	DnBuffer[shift]=Dn;
	}	
	return(0);	
 }