Renko Chart

A type of chart of Japanese origin that is constructed utilizing price movement rather than price and predefined time periods (daily, hourly, 15-minute...) as other charts do. Given that the chart resembles a collection of bricks, it is believed to have been named after the Japanese word for bricks, renga. Each block is positioned at a 45-degree angle (up or down) to the preceding brick, and a new brick is produced when the price changes by a predetermined amount. A usual color for an up brick is white or green, whereas a common color for a down brick is black or red.