Renko Chart

Renko Chart is charting technique from Japan, "Renko" derived from Japanese "renga" (brick). Renko charts focus only on price movement, completely ignoring time and volume. Each "brick" represents fixed price movement; new brick drawn only when price moves by set amount.

Types

Renko charts make trends and support/resistance clearer by filtering time and minor price fluctuations. Renko is particularly suitable for trend-following strategies; consecutive same-color bricks indicate strong trend. When brick color changes, it's potential trend reversal signal. Support/resistance and chart patterns are clearer on Renko than traditional candlesticks. Many traders use Renko to identify trends, then seek precise entry on traditional candlestick charts. Renko brick size setting is very important, needs adjustment based on market volatility.