ATR Based Renko Chart Brick Size Calculation (Proven Tips and Tricks)

Renko charts give you a clean, price focused view of the market by hiding time based noise and focusing only on meaningful price moves. A big part of getting Renko right is brick size. Use a brick that is too small and you get chopped up by noise. Use a brick that is too large and you miss valuable portions of a trend.

In this guide you will learn how to calculate an ATR Renko brick size that adapts to volatility instead of staying fixed. You will see how to apply ATR based brick sizes in TradingView and other platforms, plus common mistakes to avoid.

If you’re also interested in how I use Renko charts for long-term portfolio decisions, you can check out my Renko Investing Strategy – How I Use Renko Charts for Long-Term Decisions.

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What Is Renko Brick Size and Why It Matters

Renko charts build bricks based only on price movement. A new brick forms when price moves a set amount in one direction. That set amount is the brick size.

The right brick size helps you:

• See trends clearly without dozens of tiny brick flips.
• Filter out small, random price moves.
• Stay objective about support, resistance, and breakouts.

The wrong brick size either overwhelms you with tiny reversals or hides real changes in trend. This is why a dynamic, volatility based approach such as ATR Renko brick size can make a big difference.

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Why Use ATR for Renko Brick Size

ATR, or Average True Range, measures how much price typically moves over a chosen number of bars. Instead of guessing a fixed brick size such as $1 or 50 pips, you let ATR define what “normal” movement looks like.

If you want a formal definition of Average True Range, this ATR explanation on Investopedia gives a clear overview of how ATR is calculated and why traders use it to measure volatility.

• Low ATR means the market is quiet, so the ATR Renko brick size is smaller and more sensitive.
• High ATR means the market is more volatile, so the ATR Renko brick size is larger and filters more noise.

This approach lets your Renko chart adapt automatically as volatility changes. You can use the same method for stocks, ETFs, futures, and crypto. If the market wakes up, your brick size grows with it. If things calm down, your brick size shrinks.

If you prefer an automated workflow instead of doing the math by hand, start with the free Renko brick size calculator in Google Sheets. It uses ATR and multipliers to suggest several ATR Renko brick sizes you can test.

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How to Calculate ATR Renko Brick Size

Here is a simple process you can use on any chart to calculate an ATR based Renko brick size.

1. Pick the timeframe you want to trade or analyze, such as Daily or 4 hour.
2. Add the ATR indicator to the chart. Many traders start with a 14 period ATR.
3. Note the current ATR value. For example, ATR might be 2.15 on a stock or 350 points on an index.
4. Choose a multiplier based on how much noise you want to filter. Common ranges are 1.5 to 3.0.
5. Calculate brick size = ATR × multiplier. For example, 2.15 × 2.0 = 4.30.
6. Round the result to a sensible tick, cent, or pip size that your platform accepts.
7. Enter that brick size into your Renko settings and review how it handles recent swings.

If you see frequent whipsaws and tiny swings, the ATR Renko brick size is too small. Increase the multiplier. If entries feel late and you miss the meat of the move, lower the multiplier a bit.

You can also generate these values automatically with the Google Sheets Renko brick size calculator. It pulls price data, calculates True Range and ATR, and shows multiple ATR Renko brick sizes side by side.

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Watch an Example Using Barchart.com

If you prefer to see ATR Renko brick size calculation in action, watch this example that uses Barchart.com to walk through the steps.

While the platform in the video is Barchart, the ATR Renko method is the same in TradingView, MetaTrader, Thinkorswim, and most other tools that support Renko charts.

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How to Set ATR Renko Brick Size in TradingView

Step by Step Setup

1. Open your symbol in TradingView, such as AAPL, SPY, or BTCUSD.
2. Pick the timeframe that matches your plan, such as Daily or 4 hour.
3. Click the chart type icon and choose Renko.
4. In the Renko settings:
   • Set the source to ATR.
   • Set the ATR length, often 14 to start.
   • Set the brick size multiplier, for example 2.0.
5. Apply the settings and look at how the ATR Renko bricks track recent swings.

You can also add the ATR indicator in a separate pane. When price volatility increases and ATR expands, your ATR Renko brick size grows at the same time, which keeps the chart readable.

Once you have a brick size that fits your chart, the next step is choosing the right tools on top of those bricks. For ideas, visit 5 Dynamic Renko Chart Indicators for Supercharged Analysis .

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Bonus Tip: Combining ATR with Trendlines

ATR based Renko bricks already make price structure easier to read. You can take that a step further by adding simple trendlines on the Renko chart.

• Draw rising trendlines under swing lows in an uptrend.
• Draw falling trendlines above swing highs in a downtrend.
• Use breaks of those lines as potential exit or partial exit signals.

Because the ATR Renko brick size filters minor noise, trendline breaks tend to represent more meaningful shifts in momentum. If you want more help with exits, see 5 Renko exit rules every trader should know .

While tuning brick size and drawing trendlines, make sure your entry signals are clear. Review the examples in Renko Chart Buy and Sell Signals so entries line up with confirmed reversals.

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Fixed vs ATR Based Renko: Pros and Cons

Method	Pros	Cons
Fixed brick size	Simple, easy to understand, consistent number	Does not adjust to changing volatility, can feel too hot or too slow
ATR Renko brick size	Adapts to real time volatility, keeps charts readable in wild markets	A little more setup, requires some testing for multipliers

Neither method is perfect, but ATR based brick sizing gives you an automatic way to keep your Renko chart in sync with the current environment. It is especially useful during earnings season, major news, or strong bull and bear waves.

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How ATR Brick Size Reacts to Market Volatility

When volatility rises, ATR expands and your ATR Renko brick size becomes larger. The chart prints fewer bricks and focuses on the bigger swings. When volatility fades, ATR contracts and your bricks become smaller, which lets you see subtle changes again.

This self adjusting behavior is very different from fixed Renko settings, where the same brick size might be perfect one month and unhelpful the next. If you want to see how brick size changes the feel of your entries and exits, compare examples in Renko Chart Buy and Sell Signals .

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Common Mistakes to Avoid

• Using different timeframes for ATR and your Renko chart.
• Picking an ATR period that is too short, which creates jumpy brick sizes.
• Over optimizing multipliers for one symbol without forward testing.
• Changing brick size too often and losing any sense of consistency.

A simple rule helps. Keep ATR on the same timeframe as your Renko chart, start with a common period such as 14, and test a small set of multipliers such as 1.5, 2.0, and 2.5. Focus on clarity and stability, not on squeezing every last dollar out of the chart.

If you like to combine ATR Renko brick size with momentum tools, see which filters fit your style in our Renko indicators guide .

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Internal Resources

Here are more Renko resources you can use with this ATR Renko brick size method:

• Free Renko Brick Size Calculator Video and Google Sheet
• Renko Chart Buy and Sell Signals
• 5 Dynamic Renko Chart Indicators for Supercharged Analysis
• Renko Chart Day Trading Strategies
• 5 Powerful Renko Chart Patterns

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Frequently Asked Questions

What is a good ATR period for ATR Renko brick size?
Many traders start with 14 period ATR because it balances responsiveness and smoothness. If you trade very fast intraday charts, you can experiment with 10 or even 7. For longer term daily charts, 14 to 20 works well for many symbols.

What ATR multiplier should I use for Renko bricks?
A common starting range is 1.5 to 2.5 times ATR. If your chart looks noisy and prints a lot of small reversals, increase the multiplier. If the bricks feel too slow and you miss the main part of the move, lower the multiplier a bit.

Does the ATR Renko brick size change every day?
ATR updates as new bars come in, so the exact brick size can change over time. This is what keeps the chart aligned with volatility. You do not have to tweak it every session, but it makes sense to review it when market conditions change.

Can I use ATR Renko brick size for crypto and futures?
Yes. The method is the same. You just adjust for the typical volatility and tick size of each market. The free Renko brick size calculator can help standardize your process across symbols.

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Final Thoughts

ATR based Renko brick sizing is a simple upgrade that can make your charts more useful without adding a lot of complexity. You let volatility guide the brick size instead of guessing. The result is a chart that feels balanced across different markets and conditions.

If you are serious about using Renko for swing trading, trend trading, or long term investing, take the time to test an ATR Renko brick size on a few of your favorite symbols. Compare it side by side with a fixed brick size and see which one gives you clearer entries, cleaner trends, and less emotional noise.

When you are ready for a faster workflow, grab the free Google Sheets Renko brick size calculator, generate your ATR Renko brick sizes automatically, and plug them straight into TradingView, MetaTrader, or Thinkorswim.