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Renko chart

Trader's Glossary · Indicators

Renko chart

Definition. A chart type of Japanese origin, built from “bricks” of a fixed price size. A new brick only forms when price moves by a set amount, regardless of time.

How it works

The chart ignores time and small fluctuations, showing only moves of the set size. That makes it easier to see the structure of the move and the trend.

Example

In a quiet part of the session no new brick appears on a Renko chart for a long time; in a fast part, several appear within a minute.

What to watch out for

The brick size completely changes the picture. Some information, such as the exact extreme, may be invisible.

This is the Renko with NYSE TICK and ADD in the Hetman Terminal (Trend Formation). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data.
This is the Renko with NYSE TICK and ADD in the Hetman Terminal (Trend Formation). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →

♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →

See also

Volatility, Moving average (SMA and EMA), ATR (Average True Range).

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.