The brick section of the Renko anatomy is basically the body – offering only two points of data, the open and close price. Most scripts, or charting platforms that do offer the Renko format, will generate Renko Bricks only. There are a few different flavors of Renko candles out there, today I am going to focus on the original versions. In this lesson, I would like to introduce you to Renko candles, explain how they work, and show you how Renko price action can be a very powerful way of looking at the markets.

For this reason I’ve been a big fan, following Renko charts casually for the last 5 or so years. What I love about this chart format, is that it’s simple in nature, and most of you will know that keeping trading as simple as possible is one of the best trading philosophies to adopt.

You will soon discover the name is very fitting. Renko is derived from the Japanese word “Renga” – which translates to “brick”. Seriously, where would we be today without their historical contributions to financial analysis? Doumo arigatou gozaimasu guys. However, they also invented many other type of awesome charting formats – including Renko candles. The concept was brought to us by the Japanese – no surprise there. You probably already know the Japanese invented the candlestick chart. Today, I would like to introduce you to a very unique type of charting format, an ‘out of the box’ idea – so simple, you would probably say to yourself, “now why didn’t I think about that?” Comparing Renko to Regular Candlesticks.

Protrader clone