Renko chart, free and live

Why traders use it

Small moves under one box make no brick at all, so a quiet hour adds nothing and a choppy day shrinks into a few bricks. What is left is the direction and the size of the bigger moves. Runs of bricks in one colour are trends, and a reversal brick stands out.

The cost is detail. Two bricks can hide a whole day of trading, and the x-axis is not time, so a brick says nothing about how long the move took.

How the bricks are built

The grid starts at a multiple of the box. When a close reaches one box above the top of the last brick, an up brick is drawn; several boxes at once draw several bricks. When a close falls two boxes from the last brick’s close (one box under its bottom), a down brick starts.

Pravex sets the box from the ATR of 14 candles, rounded to a round number: half a unit of its leading digit. An ATR of $1,234 becomes a $1,000 box, an ATR of $1,260 a $1,500 box. You can type a fixed box or a percentage instead.

Only closed candles make bricks. The candle that is still forming draws a lighter brick on the Pravex chart until it closes.

A worked example

Example numbers with a $500 box: the last brick closed at $67,000. A close at $67,600 draws an up brick $67,000 → $67,500. A close at $68,150 draws an up brick $67,500 → $68,000.

Then price falls to $67,050, a drop of $1,100. That makes no brick: a reversal needs a close at $67,000 or lower, two boxes under the last close. A later close at $66,900 draws a down brick $67,500 → $67,000.

Questions and answers

Is the Renko chart free in Pravex?

Yes. Renko is one of the chart types in the chart type menu, free on every market Pravex charts.

What box size should I use for Renko?

The ATR box is a good start because it follows the market’s own volatility. A smaller box shows more turns, a bigger one only the large swings.

Why does Renko need two boxes to reverse?

The last brick already covers one box. A new brick the other way has to start from the far side of that brick, so price must travel two boxes from the last close.

Does Renko repaint?

Closed bricks never change. The brick from the forming candle can appear and go away until that candle closes, which is why the Pravex chart draws it lighter.

More indicators on a live chart: Volume profile, Heikin Ashi chart, All indicators.