| Renko charts were developed in Japan during the late 18th century by an unknown trader who wanted a simpler way to visualize price movements. The word "Renko" is derived from the Japanese word "Renga", which means bricks. The charts are created by drawing bricks toward the trend, with a fixed brick size that the trader determines. Renko chart patterns are used to identify trends, support and resistance levels, and potential entry and exit points for trades. One advantage of using Renko charts is that they filter out market noise and focus on the underlying trend. This can make it easier for traders to identify trends and potential reversals, which can be challenging to spot on traditional candlestick charts. |
