Renko charts

Идея простыми словами

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.

Как считается

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)

Как использовать

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

Выводы

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

На что обратить внимание

• 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.

Немного истории

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