What is Renko trading?

<p><br>You use a Renko chart that same way you would use any other chart. The Renko advantage is that these charts filter price (via the block size) to reduce noise while maintaining an emphasis on the important swings. I have always thought Renkos were quite interesting as the combine the best attributes of point and figure charts, which are purely price driven, with normal price versus time charts like a bar chart.</p>

<p id="isPasted">There are many types of charts available in the market. Such as: line chart, bar chart, candlestick, ranko, hekin ashi etc.</p><p>The formation of all chart patterns is different. If we talk about popular charts, then candlestick chart is the most popular in the market.</p><p>After that the most used are Hekin Ashi and Renko charts.</p><p>1) With two consecutive green bricks formed on the Renko chart, we can see a buy above the upside. In such a buy we should always exit the trade below the two red bricks formed on the forward data.</p><p id="isPasted">2) With two consecutive red bricks formed on the Renko chart we can see a selloff below the bottom. In such a sell-off we should always exit the trade above the two green bricks formed on the forward data.</p><p>Renko charts are popular among many people for the following reasons.</p><p>like:</p><p>1) It helps to read the trend easily.</p><p>2) You can easily find the resistance and support zones with the help of Renko charts.</p><p>3) Setting the stop loss also becomes simpler as compared to candlestick.</p><p>4) You will not see much noise on the chart because of the bricks.</p><p>And so on.</p><p><br></p>

<p id="isPasted">When the price is trending, Renko charts provide a simple way to stick with the trend. Don't exit until there is a reversal—a confirmed box of the opposite color.</p><p>Traders can use typical technical analysis to help identify potential turning points or the start of a trend, and then use Renko charts to stick with that trend, or a trader could simply trade based on Renko.</p><p>A new box color equals a potential trend change, so a new position could be initiated. This method can result in lots of losing trades when the price is choppy, but the positive is that the trader will be involved in every big trend that happens.</p><p>With Renko charts, there is the possibility of always being in the market. When an opposite box color forms, exit the prior trade and enter a new one. The strategy will lose during choppy periods but will always capture the big moves when they happen. As mentioned, this only seems to work with certain box sizes, and some pairs tend to trend better than others.</p>

<p>If this question is about trading in Indian Stock market, I have not come across any broker who offers Renko chart in the real sense. Charts offered in the name of Renko are close in a time interval based.</p>