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What Is a Renko Chart

A Renko chart draws the price as bricks of one fixed size: a brick is laid only when the close has moved a full brick past the last one, a brick against the run needs two bricks' worth, and nothing is drawn in between, so there is no clock along the bottom. This paper shows you gold's 64 trading days to 30 May 2025 as 54 bricks drawn from real closes, the idea as a bricklayer's wall, the same days as candles, the rule worked on three real days, and the one setting that matters on your platform.

Difficulty
Advanced
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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Three months as bricks

A Renko chart draws the price as bricks of one size. Here is gold from 28 February to 30 May 2025 with a brick of 25 dollars, built from real daily closes. A green brick is laid when the close has risen 25 dollars past the last brick, a red one when it has fallen 25 dollars below it, and nothing is drawn in between. Those 64 trading days laid 54 bricks, 36 up and 18 down: fifteen green in a row from 9 to 21 April, eight red from 7 to 14 May. There is no clock along the bottom. The bricks sit side by side however long each one took.

A bricklayer's wall

Picture a bricklayer's wall. Every brick is the same size, and a brick is laid only when the price has moved the full height of one: a move of 18 dollars leaves no mark on the wall until it becomes 25, and a move of 50 lays two at once. The wall climbs one brick at a time, in steps, and it never records how long a step took. Renko comes from the Japanese for brick, renga. The chart is a wall built out of the price.

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