Chart types

Renko charts

Bricks of a fixed size that appear only when the price moves that far: time and small wiggles disappear.

The idea in plain words

Renko (from the Japanese renga, brick) draws a new brick only when the price moves a full box beyond the last brick. A reversal needs two boxes. The result is a clean staircase of the trend.

How it is calculated

Here bricks are built from the closes of the timeframe on screen. Box size: automatic (the average true range of 14 candles, rounded) or your own value (⚙ next to the chart type).

New up brick when close ≥ top of the last brick + box
New down brick when close ≤ bottom of the last brick − box
(after an up brick, a down brick needs 2 boxes of fall)

How to use it

See trends and support/resistance without noise.
Trend following: stay in while bricks keep the same colour.

Drawing conclusions

Several bricks can come from one candle; long sideways periods show no bricks at all.
The time axis is uneven: bricks are not candles.

Example

EURUSD H1 with a 0.0010 box: a rise from 1.0800 to 1.0842 draws four green bricks; the price must fall to 1.0820 for the first red one.

Prices in examples are illustrative.

Watch out for

Results depend strongly on the box size and the timeframe used as source.
Indicators and alerts on Renko use the bricks, not the time candles.

A little history

Developed in Japan in the 19th century; brought to the West by Steve Nison in "Beyond Candlesticks" (1994).

Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.