TradingView Renko Charts

When it comes to technical analysis in financial markets, traders rely on various charting techniques to identify trends, patterns, and key levels. One such charting method gaining popularity among traders is the TradingView Renko chart. Renko charts provide a unique perspective on price movement by filtering out noise and emphasizing significant price changes. In this article, we will explore the concept of Renko charts, their construction, and how they can be used to improve trading decisions.

TradingView Renko Charts
TradingView Renko Charts

Understanding Renko Charts

Renko charts originated in Japan and were first used in the 18th century by rice traders. Unlike traditional price-based charts, Renko charts focus solely on price movement and disregard time. They are built using bricks or boxes that represent a fixed price movement. The term “Renko” is derived from the Japanese word “renga,” meaning “brick.”

Construction of Renko Charts

Renko charts are constructed by plotting bricks or boxes on the chart, with each brick representing a specific price movement. The size of these bricks is determined by the trader’s preference or the underlying asset’s volatility. If the price moves above the previous high (in an uptrend) or below the previous low (in a downtrend) by a predetermined value, a new brick is added to the chart. However, if the price fails to move the specified amount, no new bricks are added.

The Advantages of Renko Charts

  1. Elimination of Noise: Renko charts filter out market noise by focusing solely on significant price movements. This allows traders to identify trends more easily and make informed trading decisions.
  2. Clear Trend Identification: Renko charts provide a clearer representation of the underlying trend by eliminating minor price fluctuations. This helps traders identify support and resistance levels, as well as potential reversal patterns.
  3. Enhanced Visual Clarity: The simplicity of Renko charts makes it easier for traders to interpret price action. The absence of cluttered indicators or complex patterns allows for a more intuitive understanding of market dynamics.
  4. Effective for Range-Bound Markets: Renko charts are particularly useful in range-bound markets where prices move within a confined range. By highlighting only significant price movements, Renko charts can help traders identify breakout or breakdown opportunities.

Using Renko Charts in Trading

  1. Trend Identification: Renko charts excel in identifying trends, whether they are uptrends or downtrends. Traders can analyze the direction and slope of the Renko bricks to determine the strength and duration of the trend. This can be further complemented by the use of additional technical indicators.
  2. Support and Resistance Levels: Renko charts can help traders identify key support and resistance levels more clearly than traditional charts. The horizontal lines formed by the bricks act as dynamic levels that reflect changes in the price structure.
  3. Reversal Patterns: Renko charts are effective in spotting reversal patterns, such as double tops or bottoms, by highlighting significant price reversals. Traders can use these patterns to anticipate trend reversals and adjust their trading strategies accordingly.
  4. Entry and Exit Points: Traders can use Renko charts to define precise entry and exit points for their trades. For instance, a trader may choose to enter a long position when a new bullish brick is formed after a series of bearish bricks, indicating a potential trend reversal.


TradingView Renko charts offer a unique and powerful perspective on price movement in financial markets. By filtering out noise and emphasizing significant price changes, Renko charts provide traders with a clearer view of trends, support and resistance levels, and potential reversal patterns. When used in conjunction with other technical analysis tools, Renko charts can greatly enhance a trader’s ability to make informed trading decisions. However, it is important to remember that no single charting technique guarantees success in trading. Traders should always combine Renko charts with proper risk management strategies and thorough analysis of other market factors before executing trades.

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