General TradingR

Renko

A charting method originating from Japan that uses fixed-size bricks to represent price movement, ignoring time entirely. New bricks are only added when price moves by a predetermined amount, making it useful for filtering out market noise and identifying clean trends.

Example

“A swing trader applies Renko bricks of $5 to their AAPL chart, which filters out intraday noise and reveals a clear upward staircase pattern of consecutive green bricks.”