Renko Chart Indicator MT4

Renko Chart Indicator MT4

The Renko Brick Chart indicator in MetaTrader 4 presents a chart made up of bricks, each reflecting a specific price movement that is independent of time-based charting. This indicator effectively filters out market noise, offering a clearer view of the prevailing trend at a consistent 45-degree angle.

A new brick forms whenever the price shifts by a preset value. Red bricks represent bearish movement, while blue bricks indicate bullish trends.

Indicator Specifications Table

Overview of the Indicator

Renko charts remove the element of time and focus solely on price movement, making it easier to detect Support and Resistance levels that are often harder to identify on standard candlestick or bar charts. This indicator processes raw price data and constructs Renko bricks accordingly.

Uptrend Conditions

The daily chart of the GBP/USD currency pair demonstrates the indicator’s behavior during an uptrend. Each time the price advances by the set amount, a new brick is added to the chart. In an uptrend, the formation of consecutive red bricks above the previous one signals trend continuation.

Downtrend Conditions

The one-hour chart of Bitcoin (BTC) showcases how the Renko Brick Chart indicator performs in a downtrend. A continuous series of downward bricks indicates sustained selling pressure. In such conditions, each brick is created below the preceding one, marking the progression of the bearish trend.

Settings

• Box Size: Determines the price range required to form a new brick. For instance, if set to 10 pips, a new brick will only appear after the price moves 10 pips.
• Reverse: Sets the number of bricks needed to confirm a trend reversal signal.

Conclusion

The Renko Brick Chart indicator focuses on actual price movements by eliminating the time component, providing traders with a cleaner and more focused chart. Its brick-based design simplifies the identification of major market trends and helps traders pinpoint precise entry and exit levels with greater confidence.