RENKO basics and setting up the charts

Renko charts consist of brick-shaped bars, stood on end..

Each brick represents x pips of movement up, or x pips of movement down. x is a
user input. In this picture, each brick is 10 pips.
Renko charts are independent of time-frames. A new brick onl starts when the previous
one has moved x pips. !he ellow arrow is pointin" towards a brick under formation. It
looks like the standard candle we are all used to seein", because the price has to move a
full x pips #in this case 10$ either up of down from its open price before it becomes a brick
and the next one forms.
As illustrated, the bricks do not show the full extent of up and down movement in the price
whilst the have been formin". It is possible to "enerate bricks that also show wicks.
%hether to have, or not have, wicks is a personal choice that depends on what ou are
trin" to do. !he body of the brick alwas represents our choice of x pips movement
either up or down.
%h do some traders use Renko bricks& 'rimaril, this is because each brick represents
solid movement in the direction of the brick.
Risin" bricks are onl created when the market has moved x pips up from the close-
hi"h of the previous one.
(allin" bricks are onl created when the market has moved x pips down from the
close-low of the previous one.
!he price has to move x times ) #)0 pips on this chart$ for the bricks to chan"e
colour.
!his means we are basin" our tradin" decisions on pure price action* time does not come
into the e+uation.
In a +uiet market, bricks will take a lon" time to form.
In a rapidl-movin" market, the will form +uickl.
Setting up your Renko charts
!here is no facilit within ,!- to create Renko charts, so we need some extra software to
do this. Renko.ive/hart0v1.) does this and is attached to post 1 in the thread from which
ou downloaded this pdf. 2ownload it to the Experts folder of our ,!- platform. If ou do
not know how to do this, the 3oo"le 4installin" mt- experts4 to find sites that will explain
this simple process.
Each pair we want to trade will have two charts5
1. A 1 minute time-frame chart
). A second, offline chart
Ima"ine ou are "oin" to set up a 36 Renko chart.
7tep 1 is5
load a new chart
chan"e to the ,1 time frame
turn off chart shift and and auto-scroll. 8ou will see the buttons at the top of the
chart* the look like this5
use the scroll out tool #usual sp"lass tool used b most %indows software, found
next to the auto-scroll9shift buttons I showed above$ to scrunch the chart up as
much as ou can.
'ress the :ome ke until the chart has shifted back a few das.
Ri"ht click on the chart and select 4Refresh4. !his makes the platform update the ,1
histor with missin" bars ; click on the <ournal tab to see how man bars have
been added. 8ou need to do this to ensure that prior bricks are created from the
most accurate tick data possible. It probably dosen4t matter how accurate the
historical data is, but better to leave nothin" to chance.
7tep ) is5
3o to the =avi"ation window and open up Expert Advisors. 2ra" an instance of
Renko.ive/hart0v1.) onto the chart ; all ou have to decide is whether ou want to
displa the wicks or not. 8ou can alwas chan"e our mind later on.
>nce the ,1 chart receives a tick, ou will see a comment instructin" ou to open
an offline 36 ,- chart, so5
click (iles, then >pen >ffline. After a few seconds, that offline chart window
will fill with a list of available charts ; this mi"ht take a while.
7croll down to the ,- 36 and open the chart.
!he offline chart off which ou will take our trades will appear. (rom here, ou set it up as
candles9bars etc with our choice of colours as usual.
Remember5 the ,1 chart hosts Renko.ive/hart0v1.) that constructs the bricks on the
offline chart. It is of no further use to ou, so simpl leave it doin" its thin" and i"nore it.
8ou trade from information "ained from the offline chart.
Another thin" to remember is this5 indicators, scripts and ea4s appear to work on the offline
chart usin" Renko bars, as the do on 4normal4 charts. 6nless this is proven otherwise, I am
assumin" this to be true.
:ave fun.