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Renko Chart

Renko charts are a type of chart used to illustrate price movement and trend reversals. The chart consists of a series of white and black bricks, with each brick representing a predetermined price movement. A white brick indicates an upward trend, while a black brick indicates a downward trend. The size of each brick is the same, providing a uniform representation of price movements. Renko charts help identify critical support and resistance levels, allowing traders to make informed decisions based on price action.

Sample Table Format

DateOpen CloseBrick Size
2022-01-08 13012010
2022-01-09 9513010
2022-01-10 10012010
2022-01-11 10014010

In this table, the Date column indicates the date of each trading day, the Open column indicates the opening price of each day, the Close column indicates the closing price of each day, and the Brick Size column indicates the size of each Renko brick. Renko chart is built using bricks, with each brick representing a fixed price movement. The size of the bricks is determined by the Brick Size column in the table

Best practices for using renko charts

Renko charts are a popular technical analysis tool that can give traders a unique way of viewing price action. Here are some best practices for using Renko charts effectively:
  • Choose an appropriate brick size: The size should be based on the underlying asset's volatility. A larger brick size will generate fewer signals, but they will be more reliable, while a smaller brick size will generate more signals but may be more prone to false signals.
  • Consider the time frame: Renko charts can be used in any time frame, but traders should be aware that the charts will look different in different time frames. Traders should choose a time frame that matches their trading style and objectives.