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Forex Renko Charts Indicator
Introduction to Renko Charts Indicator
The Renko Charts is a type of price charting which was also developed in Japan. It was first introduced to the traders in the United States by Steven Nison in his book, Beyod Candlesticks.
It is said that the Renko Charts derived its name from the Japanese word “renga”, which means “brick”. This is because Renko Charts present price movements using boxes which closely resembles stacked bricks.
What is the Renko Charts Indicator?
To efficiently plot a Renko Chart, traders would need a Renko Charts indicator which automatically plots price movements using the Renko Chart method.
Traditional price charts present price movements in a chronological manner wherein price movements are presented in relation to time periods. The y-axis of the chart represents price levels, while the x-axis of a chart indicates time periods, which could be based on minutes, hours, days or more.
The Renko Charts significantly diverges from this type of price presentation because it totally disregards time and focuses solely on price movements. This creates a chart which effectively indicates trends and momentum based on price movements using “bricks” or blocks to represent each unit of price movement.
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