Renko Chart
A Renko chart draws fixed-size bricks only when price moves by a set amount, ignoring time completely. Rising bricks are hollow and falling bricks are filled, which filters out small moves and makes trends easy to see.
Candlestick charts print a new bar every period, whether anything happened or not. Renko charts don't care about the clock: a new brick appears only when price travels a full brick size. Quiet periods vanish and trends stand out. This entry explains how Renko charts are built, how to choose the brick size and what they hide.
- Category
- Technical Analysis
- Reading time
- 3 min
- Also called
- Renko charts, Renko bricks, Renko
- Updated
Renko in plain words
Renko charts come from Japan and ignore time, focusing only on price changes that meet a minimum size — similar to Point & Figure charts.1
Each brick represents a fixed price move; rising bricks are hollow and falling bricks are filled.1
Like Point & Figure charts, they evolve only when price moves, so no movement means no change on the chart.2
How a Renko chart is built, step by step
Choose a brick size
A fixed amount or one based on ATR. See Average True Range.
Start from a price
The first brick's base.
Add a brick per full move
Only when price travels the whole brick size.
Ignore smaller moves
Anything less draws nothing.
Reversals need more
Usually two bricks' worth to reverse direction.
Read the trend
Runs of one colour show trends. See Trend.
Worked examples
Example 1 — Not enough movement
No brickBrick size 10 points. The index rises from 1,840 to 1,849.
| Move | 9 points |
| New brick? | No |
Moves smaller than the brick size are ignored and the chart does not change.1
Example 2 — A new brick
One up brickThe next day the index reaches 1,850.
| Total move | 1,850 − 1,840 = 10 points |
| New brick | 1,840 → 1,850 (hollow) |
Once the full 10-point move is complete, a new rising brick is drawn.1
Example 3 — Big move, several bricks
Three bricksBrick size $2. A stock jumps from $50 to $57.50 in one day.
| Move | $7.50 |
| Full bricks | $7.50 ÷ $2 = 3 (remainder ignored) |
| Top of last brick | $56 |
Only complete brick moves are drawn, so the chart shows $56, not the actual $57.50. See Price Action.
Renko vs candlestick chart
| Aspect | Renko | Candlestick |
|---|---|---|
| Time axis | Ignored | Fixed periods |
| New bar when | Price moves one brick | Each period ends |
| Noise | Filtered | All shown |
| Detail lost | Highs, lows, timing | None. See Candlestick |
How traders use Renko charts
Trend following
Stay in while bricks keep the same colour. See Trend Following.
Support and resistance
Clean levels without noise. See Support and Resistance.
Breakouts
Clear breaks of brick ranges.
Trailing stops
Exit after a reversal brick. See Trailing Stop.
Advantages and disadvantages
Advantages
- Filters noise.
- Makes trends obvious.
- Simple visual rules.
Disadvantages
- Hides time and exact highs and lows.
- Bricks can lag real price.
- Results depend heavily on brick size.
Going deeper
Read as far as you need. Each level builds on the one before it.
45-degree bricks
Beginner
Bricks sit in 45-degree lines with one brick per column, so a steady trend looks like a staircase.1
Choosing a brick size
Intermediate
A fixed size suits a narrow price range; an ATR-based size adapts to volatility, an approach also used to scale Point & Figure boxes.3
Backtesting caution
Advanced
Because bricks form only after a full move and can repaint on live data, Renko backtests often look better than real trading. See Look-Ahead Bias.
Common mistakes
Bricks too small
Brings back the noise.
Bricks too large
Signals arrive very late.
Trusting brick prices
Real fills can be far from brick edges.
Ignoring gaps
A gap can create several bricks at once.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Renko charts draw bricks for fixed price moves.
- They ignore time completely.
- Small moves are filtered out.
- Brick size, fixed or ATR-based, drives everything.
- They hide exact highs, lows and timing.
Frequently asked questions
What is the best Renko brick size?
Do Renko charts repaint?
Can you day trade with Renko?
Further learning
- Point and Figure Chart
The closest relative.
- Kagi Chart
Another time-free chart.
- Average True Range
A common way to size bricks.
- Heikin-Ashi
Another way to smooth price.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Renko Charts (opens in a new tab) Checked .
- StockCharts ChartSchool. Introduction to Point & Figure Charts (opens in a new tab) Checked .
- StockCharts ChartSchool. Point & Figure Scaling and Timeframes (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.