The Renko Chart. This indicator replaces your standard time-bounded candles altogether and replaces them with price-bounded blocks, all equal in size.

The key here is understanding the distinction between regular candles, which simply measure the price movements that occur within a specific time window and Renkos which are not bounded by time at all.

The bricks are equal in size because they all represent the same movement in price. When price moves up by a specific predefined interval a blue brick is painted above the previous brick, and when price moves down by that price interval an orange brick is painted below the previous brick (my custom colors, standard is green/red).

A brick is only painted once that price movement has occurred, whereas a regular candle will always be painted after a certain period of time has passed.

This is the magic of Renkos. They allow you to escape the time-bounded framework you’ve been unknowingly conditioned to trade within, and free you to look at your market on a different axis.

So how do you trade Renkos? There are a few philosophies surrounding the execution. Some are hardline minimalist and trade them naked. They sometimes call this “brick counting” and it functions more as a process of intuition than anything else.

These traders are intimately familiar with their chosen market and know exactly how many points the average swing consists of. They use the Renko colour switch to determine the start/end of a swing and count the bricks before fading the next move.

But personally I prefer to trade Renkos in conjunction with another indicator: Keltner channels. KCs provide an excellent counterpart to the bricks and help contextualize where price is in relation to the larger market structure.