A Renko chart is a type of price chart that is used in technical analysis to represent price movements. Unlike traditional charts that display price data over time, Renko charts focus solely on price changes, using fixed price movements known as bricks. Each brick represents a specific price increment; when the price moves up or down by this increment, a new brick is added. This method helps to filter out market noise, making it easier for traders to identify trends and reversals. Typically, Renko charts are employed in conjunction with other technical analysis tools to make informed trading decisions.
