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Technical analysis

Renko chart

By Jarosław Wasiński • Published: • Updated:
A chart built from bricks formed under a specified price-movement threshold rather than equal time intervals. Size, source data, anchor and reversal convention determine the display. Brick levels are synthetic and must not be assumed executable. Time, costs and event risk remain relevant.
Example. In an illustrative ten-pip brick model anchored at 1.1000 and built from successive prices, a rise to 1.1025 can complete bricks to 1.1010 and 1.1020. The remaining five pips do not complete another. Reversal depends on a separate convention, such as requiring two brick sizes.

Construction and data

Size can be fixed, percentage-based or ATR-derived. Specify the anchor, input price, reversal rule and wicks. Tick-based construction can differ from one using closes or lower-timeframe bars; redrawing cannot recover an unknown intrabar path. Compare settings and underlying data before assuming identical historical bricks.

Time still matters

Bricks do not represent equal time units: several can form quickly, followed by a long period without one. Dates, events, financing and market breaks remain relevant. Unfinished projection bricks can change. Historical appearance can also change after resizing or altering a dynamic ATR-size calculation. A smooth presentation does not eliminate exposure.

Signals without synthetic fills

Brick colour or a sequence can define a signal. Execution must still use actual prices and times rather than a synthetic brick level. A test using only brick OHLC can overlook costs and invent executable prices. Preserve the underlying history needed to reconstruct event order, and do not infer live performance from a visually attractive completed chart.

Source of the definition

TradingView: Renko. Documentation of the construction or concept is not a guarantee of strategy results.

FAQ

Does every brick last equally long?
No. Formation depends on price movement, not equal elapsed time.
Is a Renko close a guaranteed fill price?
No. It is a chart-construction level; an order needs actual quotations.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

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