1. The Renko (bricks)
The word "Renko" comes from "Renga", the Japanese word for
"Brick". The square boxes that make up a Renko chart are often
referred to as "bricks”. Renko charts are "time independent" charts
that do not have constantly spaced time axes. Renko charts are
based on closing prices or on highs and lows of the period. We
choose to base our own charts on the highs and lows of the period.
Renko charts have a pre-determined "Brick Size" that is used to
determine when new bricks are added to the chart. If prices move
more than the Brick Size above the top (or below the bottom) of the