{"id":12240,"date":"2026-05-22T13:39:13","date_gmt":"2026-05-22T13:39:13","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/renko-charts\/"},"modified":"2026-05-22T13:39:13","modified_gmt":"2026-05-22T13:39:13","slug":"renko-charts","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/renko-charts\/","title":{"rendered":"Renko Charts"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/renko-charts\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Renko charts<\/a> &#x2014; &#x201C;renga&#x201D; means brick in Japanese &#x2014; plot price moves as bricks of equal size. A new brick is added only when the price moves a predetermined amount in either direction. Time is irrelevant: a Renko chart can stay flat for an hour or roar through a hundred bricks in five minutes. Indian traders use Renko to filter out noise and focus on real directional moves.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>Renko charts ignore time; bricks form only when price moves a set amount (the box size).<\/li>\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bullish\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Bullish<\/a> (green) bricks form on upward moves; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bearish\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">bearish<\/a> (red) bricks form on downward moves.<\/li>\n<li>A reversal brick requires double the box size in the opposite direction.<\/li>\n<li>Smooths out minor fluctuations; great for trend identification.<\/li>\n<li>Not suitable for exact entries &#x2014; combine with candlestick chart for execution.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"how-renko-bricks-work\">How Renko bricks work<\/h2>\n<p>You set a box size (say 10 points for <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nifty\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Nifty<\/a>). A new green brick prints only when price rises 10 points above the high of the prior brick. A red brick prints only when price falls 10 points below the low of the prior brick &#x2014; but a reversal requires a 20-point opposite move (one to retrace the current brick, one to form the new one).<\/p>\n<h2 id=\"choosing-box-size\">Choosing box size<\/h2>\n<ul>\n<li><strong>Fixed value:<\/strong> Set a number based on the instrument&#x2019;s typical range &#x2014; e.g., 50 points for Bank Nifty.<\/li>\n<li><strong>ATR-based:<\/strong> Use the Average True Range over a recent period as the box size; adapts to <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/volatility\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">volatility<\/a>.<\/li>\n<li><strong>Percentage:<\/strong> Use a % of price; useful for high-priced <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stocks<\/a> like MRF.<\/li>\n<\/ul>\n<h2 id=\"reading-renko-signals\">Reading Renko signals<\/h2>\n<ul>\n<li><strong>Sequence of same-colour bricks:<\/strong> Confirmed trend.<\/li>\n<li><strong>First reversal brick:<\/strong> Possible trend change; needs follow-through for confirmation.<\/li>\n<li><strong>Trend-line breaks on Renko:<\/strong> Cleaner than on candlestick charts because noise is removed.<\/li>\n<li><strong>Support\/resistance:<\/strong> Easier to spot horizontal levels where multiple reversals occur.<\/li>\n<\/ul>\n<h2 id=\"strengths-and-weaknesses\">Strengths and weaknesses<\/h2>\n<table>\n<tr>\n<th>Strengths<\/th>\n<th>Weaknesses<\/th>\n<\/tr>\n<tr>\n<td>Clean trend visualisation<\/td>\n<td>No time on x-axis &#x2014; hard to align with news<\/td>\n<\/tr>\n<tr>\n<td>Less noise than candlestick<\/td>\n<td>Reversal needs double the box; lags major turns<\/td>\n<\/tr>\n<tr>\n<td>Easy to spot S\/R levels<\/td>\n<td>Bricks form irregularly &#x2014; hard for time-based strategies<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"combining-renko-with-other-tools\">Combining Renko with other tools<\/h2>\n<p>Add a moving average to Renko bricks to confirm trend direction. Use <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/volume\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">volume<\/a> bars beneath to verify breakouts. When Renko prints a reversal brick at a high-volume node from the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/volume-profile\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">volume profile<\/a>, the signal carries more weight.<\/p>\n<h2 id=\"where-renko-shines-for-indian-traders\">Where Renko shines for Indian traders<\/h2>\n<p>Renko works well on Nifty and Bank Nifty futures because the underlying moves enough each day to form clean brick sequences. On illiquid small-caps, bricks may form rarely or jump erratically. For positional traders using daily data, Renko offers a clutter-free way to maintain trend discipline.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"does-renko-ignore-intraday-price-spikes\">Does Renko ignore intraday price spikes?<\/h3>\n<p>Yes &#x2014; only confirmed moves of the box size print a brick, filtering out sub-box noise.<\/p>\n<h3 id=\"what-box-size-should-i-use\">What box size should I use?<\/h3>\n<p>A common starting point is the daily ATR divided by 10&#x2013;20. Experiment until bricks form roughly once or twice per session.<\/p>\n<h3 id=\"is-renko-better-than-candlestick\">Is Renko better than candlestick?<\/h3>\n<p>Different tools for different jobs. Use Renko for trend, candlestick for entries.<\/p>\n<h3 id=\"does-lemonn-s-charting-tool-support-renko\">Does Lemonn&#x2019;s charting tool support Renko?<\/h3>\n<p>Yes &#x2014; Renko is available alongside Heikin Ashi, Line and <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bar-chart\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Bar chart<\/a> types.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Renko charts &#x2014; &#x201C;renga&#x201D; means brick in Japanese &#x2014; plot price moves as bricks of equal size. A new brick is added only when the price moves a predetermined amount in either direction. Time is irrelevant: a Renko chart can stay flat for an hour or roar through a hundred bricks in five minutes. Indian [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12240","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Renko charts &#x2014; &#x201C;renga&#x201D; means brick in Japanese &#x2014; plot price moves as bricks of equal size. A new brick is added only when the price moves a predetermined amount in either direction. Time is irrelevant: a Renko chart can stay flat for an hour or roar through a hundred bricks in five minutes. Indian&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12240\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}