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Renko Chart

Price-based bricks that ignore time, focusing on pure price movement.

Structure​

  • Bricks of fixed price size (brick size)
  • New brick only when price moves brick size
  • No time-based gaps
  • Up bricks (typically white/green)
  • Down bricks (typically black/red)

Key Characteristics​

  • No time axis: Pure price action
  • Trend clarity: Noise filtered out
  • Reversal bricks: Require opposite brick of same size
  • Wicks: May show high/low beyond brick

When To Use​

  • Clear trend identification
  • Noise reduction
  • Support/resistance levels
  • Swing trading
  • Breakout strategies

Parameters​

  • Brick size: Fixed price amount (e.g., $2)
  • ATR-based: Dynamic based on volatility
  • Reversal amount: Typically 2-3 brick sizes

Advantages​

  • Removes time noise
  • Clear trends
  • Easy support/resistance
  • Objective signals

Disadvantages​

  • Loses time context
  • Delayed signals
  • Not for all strategies

API​

chart.setChartType('renko');

Best Practices​

  • Use ATR-based for volatile markets
  • Fixed size for stable stocks
  • Combine with time charts
  • Good for swing, poor for scalp