Renko charts are often an overlooked way of analyzing price data and charting markets. Renko charts eliminate the time component of trading and only focus on price itself. Potentially, Renko charts can filter out a lot of the market noise and display price in a much more organized and simpler to interpret way. Of course, Renko charts come with a few disadvantages and we will take a close look at the pros and cons of Renko charts.
Before we get into the specifics, we need to understand what Renko charts do and why they look different than regular candlestick charts.
Conventional candlestick charts print a new candlestick every hour, 4 hours, day, week or other time interval the trader chooses as his period setting. Renko charts, on the other hand, are