Renko Chart

Renko charts are a Japanese charting technique that plots price movement using "bricks" of a fixed size, completely ignoring time and volume. A new brick is only drawn when price moves a specified amount (the brick size) in either direction. Bullish bricks are typically shown in green/white and bearish bricks in red/black. Because Renko charts filter out minor price fluctuations, they produce cleaner trend identification than traditional candlestick or bar charts. The key decisions in Renko charting are selecting the brick size (which can be based on a fixed value, ATR, or percentage) and whether to use closing prices or high/low prices for brick calculation. Renko charts excel at identifying support and resistance levels, trend direction, and reversal points. They are particularly popular among swing traders and position traders who want to focus on significant price moves rather than intraday noise. The trade-off is that Renko charts sacrifice time information and can lag real-time price action.