Introduction to Renko Charts Indicator

Renko charts indicator are a unique type of chart developed in Japan that focuses solely on price movement. Unlike traditional charts that plot price against time, Renko charts remove time and only plot price action that meets a specified amount. This filtering out of smaller price movements helps traders identify trends and key support and resistance levels more easily.

Renko Charts Indicator

Download Free Renko Charts Indicator

In Renko charts, price activity is plotted as bricks of uniform size and color. For example, if a 5-point Renko chart is used, a new brick is plotted when the price moves 5 points up or down from the previous brick. Bricks are always plotted at 45-degree angles in the direction of the price move. Upward moving bricks are hollow while downward ones are colored in.

Some key advantages of using Renko charts include:

  • Filters out market noise and volatility
  • Clearly highlights trends
  • Identifies support and resistance levels
  • Provides clear signals for entries and exits

However, Renko charts also come with some limitations:

  • Limited historical information
  • Can give false signals in choppy or ranging markets
  • Omits detailed price information like wicks and shadows

Overall, Renko charts can be a very useful addition for traders looking to identify and follow trends. When combined with other analysis techniques, they can improve trading accuracy.

How to Add Renko Charts in MT4 and MT5

The MetaTrader platforms do not have native support for Renko charts so traders need to use custom indicators or Expert Advisors (EAs) to plot Renko bricks. Here are some popular options:

RenkoLiveChart Indicator

This free custom indicator plots real-time Renko charts directly on the MT4 or MT5 chart window. Traders can easily adjust the brick size, chart colors, and other settings.

Renko Bars 3in1 EA

This EA plots offline Renko charts in a separate window along with the regular candlestick chart. It also has a trading panel for entries and exits based on Renko signals.

Renko Charts EA

Another Expert Advisor that plots offline Renko charts and has basic trading functionality built-in. Lots of customization options are available.

These tools make it easy to add Renko bricks to MetaTrader charts. The offline charts give more accurate signals compared to real-time indicators.

Trading Strategies for Renko Charts

Renko charts lend themselves well to certain trading strategies and techniques. Here are some popular ways traders utilize Renko bricks:

Trend Trading

Trends become very obvious on Renko charts as the bricks continue plotting in the direction of the trend without retracements. Traders can enter on a brick color change and ride the trend by adding to the position on each additional brick.

Support and Resistance Trading

Horizontal areas become clearly visible as support and resistance levels on Renko charts. Traders watch price action at these zones for rejection or breakout signals to enter trades.

Price Action and Pattern Trading

Candlestick patterns and other types of price action signals can be applied directly on Renko bricks. These tend to be higher probability setups since the noise is filtered out.

Indicator Strategies

Oscillators, moving averages, Bollinger Bands and other indicators can be used to generate signals on Renko charts. These strategies remove many false signals from whipsaws and volatility.

Breakout Trading

By filtering out consolidations and ranging price action, Renko charts excel at highlighting breakouts early on. Traders can capitalize on these momentum surges.

These are just some of the many ways Renko bricks can improve trading analysis and performance.

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Tips for Setting Up Renko Charts

When configuring Renko charts, traders have a few settings to adjust for optimal use:

Brick Size

This is the minimum price movement required to plot a new brick. Select based on volatility, asset type, and strategy. For intraday trading, use smaller brick sizes.

Chart Type

Typically Close or High/Low charts are used. Close plots bricks on closing prices while High/Low uses the price range. High/Low creates more bricks.

Offset Bricks

This offsets the Renko bricks from the main price line for better visibility. Can toggle on/off easily.

Brick Colors

Use contrasting colors, like green/red or blue/black for uptrend and downtrend bricks. This makes trends stand out clearly.

Chart Window

Separate chart windows for Renko charts reduce visual clutter. EAs and multi-chart setups enable this.

Like other aspects of trading, finding the right Renko configuration requires some optimization and practice. Day traders may need different settings compared to swing traders.

Pros and Cons of Using Renko Charts


  • Filters out market noise
  • Removes false signals from volatility
  • Clearly highlights support, resistance and trends
  • Identifies breakouts early
  • Simplifies analysis and decision-making
  • Reduces influence of time and volume
  • Provides clear entry and exit signals


  • Omits detailed price information
  • Can give late signals
  • Limited historical data
  • Difficult to combine with other indicators
  • Ineffective for scalping strategies
  • Misses short-term fluctuations
  • Not suitable for all market conditions

While Renko charts have some excellent advantages, traders do need to weigh the cons before fully committing to analyze markets solely with Renko bricks. Using Renko charts in conjunction with other techniques provides balance.


Renko charts indicator provide a valuable perspective by removing time and focusing purely on price action. This filtering out of noise enables easier identification of support, resistance, trends and chart patterns. Strategies can be designed around simple Renko signals for entering and exiting trades.

When configured properly, Renko charts excel at highlighting momentum and spotting trend reversals early on. However, traders do need to be aware of limitations like fewer signals, lack of detailed price history and occasional false breaks. Used judiciously along with other analysis methods, Renko bricks can significantly improve trading accuracy and profitability.

With the availability of custom indicators and Expert Advisors, adding Renko charts on MT4 and MT5 platforms is quick and easy. Automated strategies can also be built around Renko signals for systematic trading. Overall, Renko charts are a useful addition to every trader’s analytical toolkit.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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