What are Renko Charts?
A Renko chart is a type of chart, developed by the Japanese, that is built using price movement rather than both price and standardized time intervals like most charts are. A new brick is created when the price moves a specified price amount, and each block is positioned at a 45-degree angle to the prior brick. An up brick is typically coloured white or green, while a down brick is typically coloured black or red.
Renko charts have a time axis, but the time scale is not fixed. Some bricks may take longer to form than others, depending on how long it takes the price to move the required box size. The simple logic to enter a stock is when a green brick appears. On the other hand, you will exit your position when a red brick appears.