A chart that throws away the time axis and adds a brick only when price moves a fixed amount. Daily wobble is discarded, leaving only trend and the color flip that marks a reversal.
A Renko chart throws away the horizontal axis of time and adds a new brick only when price has moved a fixed amount. The name comes from renga, the Japanese word for brick.
A normal candlestick chart prints one candle per fixed time interval. On a one-hour chart, one candle per hour; on a daily, one per day, even if price barely moved. So quiet stretches still fill the chart with tiny wicks and indecisive candles, and the picture clogs with noise.
Renko inverts that premise. No matter how much time passes, if price has not moved the chosen brick size, not a single brick is added. Conversely, a large fast move stacks several bricks at once. The horizontal axis becomes "how far price has traveled," not how long it took.
The result: flat periods where nothing happened vanish from the chart, and as long as a trend persists the same color marches in a straight line. Up is white (green), down is black (red). The moment the color flips is the reversal signal itself.
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OANDA:USDJPY
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