Renko charts offer a clean, price-focused view of the market by filtering out time-based noise. A key factor in building effective Renko charts is brick size — and using the Average True Range (ATR) is one of the most dynamic and adaptive ways to set the ATR Renko brick size for clearer trend analysis.
Many traders struggle with determining the optimal brick size when using Renko charts. Set it too small, and you get chopped up by noise. Set it too large, and you lose opportunities. This guide will walk you through using ATR to calculate a flexible, data-driven brick size that evolves with market volatility.
📌 Summary: ATR-Based Renko Brick Size Calculation
What you’ll learn:
This guide explains how to calculate Renko chart brick sizes using the Average True Range (ATR). You’ll get a step-by-step walkthrough, TradingView setup instructions, a video example using Barchart.com, and bonus tips for combining ATR with trendlines.
Why it matters:
Choosing the right brick size is critical for filtering noise and identifying trends. ATR provides a dynamic, volatility-based approach that adapts to real-time market conditions.
Key takeaways:
- ATR-based brick sizes adjust with market volatility
- Ideal for trend trading, swing trading, and long-term analysis
- Compatible with platforms like TradingView and Barchart
- Avoids the pitfalls of fixed-size Renko settings
- Bonus: Learn to pair ATR with trendlines for clearer entries/exits
Table of Contents
- Open your chart → set timeframe
- Add ATR (length 14) → note the value
- Brick size = ATR × multiplier (e.g., 1.5–3.0)
- Apply to Renko → validate on recent swings
- Adjust multiplier if too whipsaw / too slow
How to Calculate ATR Renko Brick Size
- Open your instrument on the target timeframe (e.g., Daily).
- Add ATR (length 14) and note the current ATR value.
- Choose a multiplier (common: 1.5–3.0) based on volatility and how much noise you want to filter.
- Compute brick size = ATR × multiplier (round sensibly to instrument tick/cent/pip).
- Apply the brick size in your Renko settings.
- Validate on recent moves; if too noisy, increase the multiplier; if sluggish, decrease it.
Example Settings (TradingView)
- ATR length: 14
- Multiplier: 1.5–3.0 (start at 2.0)
- Validation: Check last 3–5 major swings for clean trends vs. whipsaws
FAQs
Is 14-ATR always best?
How do I pick the right multiplier?
What Is Renko Brick Size and Why It Matters
Renko charts build bricks based solely on price movement, not time. A new brick forms only when price moves a certain amount — the brick size — in one direction.
The right brick size allows you to:
- Spot strong trends clearly
- Avoid small, meaningless fluctuations
- Stay objective about price structure
The wrong brick size can either overwhelm you with noise or hide important shifts in momentum. This is why ATR-based sizing offers an edge.
Why Use ATR for Renko Brick Size?
ATR (Average True Range) measures volatility over a defined number of periods. Instead of using a static brick size (e.g., $1 or $2), you let ATR define what a meaningful move is — based on how volatile the market currently is.
Here’s what that looks like:
- Low ATR = smaller bricks → more sensitivity
- High ATR = larger bricks → more smoothing
This approach lets your Renko chart adapt automatically to the asset and timeframe you’re analyzing.
New here? Visit the Lacois homepage for all Renko guides, tools, and videos.
Watch an Example Using Barchart.com
To see how ATR brick sizing works in a real chart:
Ready to apply these sizes in your platform? Here’s the Thinkorswim Renko setup with step-by-step screenshots and troubleshooting.
How to Set ATR Renko Brick Size in TradingView
Step-by-Step Setup:
- Open any chart (e.g., AAPL, SPY)
- Click the chart type → choose Renko
- Under settings:
- Source: ATR
- ATR Length: 14
- Brick Size Multiplier: 1.0 (or adjust to 1.5+ if desired)
You can also add the ATR indicator to the chart for reference.
🎥 Need a Visual Walkthrough?
For a quick overview of how to set up Renko charts using ATR in TradingView, check out this official video tutorial from TradingView . It walks you through enabling Renko mode, adjusting brick size settings, and understanding how price movement translates into bricks on the chart.
Tips:
- Save this chart layout for future use.
- Use two charts side-by-side (fixed vs. ATR) to compare behavior.
Once you’ve chosen the right ATR brick size, the next step is selecting the best Renko chart indicators to guide entries and exits.
Not sure when to use ATR vs fixed? This explainer on Traditional vs ATR Renko shows clear pros/cons.
Bonus Tip: Combining ATR with Trendlines
Once you’re using ATR-based brick sizing, you can take it further by drawing trendlines on your Renko charts.
- Renko makes trendlines easier to spot because of clean, directional movement.
- ATR brick sizes reduce noise, so trendlines break only when price moves meaningfully.
- Combine Renko + ATR + trendlines for long-term entry/exit strategies with fewer false signals.
This method works well for stocks, ETFs, and even crypto trading.
While tuning brick size, compare your Renko buy & sell signals so entries align with a confirmed reversal.
Fixed vs. ATR-Based Renko: Pros and Cons
| Method | Pros | Cons |
|---|---|---|
| Fixed Size | Simple and consistent | Doesn’t adjust to market shifts |
| ATR-Based | Adapts to real-time volatility | Slightly more setup complexity |
ATR-based bricks help you stay relevant — especially during major trend shifts or volatile earnings seasons.
Once brick size is set, follow these Renko trend trading tips to ride moves longer.
Common Mistakes to Avoid
- ❌ Using different timeframes for ATR and chart data
- ❌ Using too short an ATR period (leads to spiky charts)
- ❌ Over-optimizing multipliers without testing
Stick to basics, test before adjusting, and let price guide the strategy.
If you rely on momentum or trend filters, see which tools fit in our Renko indicators guide
Internal Resources
Keep learning:
- Renko Chart Buy & Sell Signals: A How-To Guide
- 5 Dynamic Renko Chart Indicators for Supercharged Analysis
👉 New: GPT + Renko + Covered Call Options | DVN Strategy — see how GPT analyzes charts and covered call options for income ideas.
Frequently Asked Questions
Q: What’s the best ATR period for Renko?
A: 14 is a popular starting point. Intraday traders may use 5–10.
Q: Can I use this for any asset?
A: Yes — ATR works for stocks, forex, crypto, and ETFs.
Q: Should I adjust ATR brick size with a multiplier?
A: Yes. Use 1.0 to 2.0 as a starting range. 1.5 is a good default.
Q: Will the brick size keep changing?
A: It updates when the ATR changes, which can be every bar.
Brick size is the foundation of Renko. If it’s too small, you’ll chase noise; too large, you’ll miss big chunks of moves. Read more about the top 5 Renko chart mistakes to avoid.
Final Thoughts
ATR-based brick sizing is a simple yet powerful way to improve your Renko chart accuracy. It adapts to market conditions, smooths out noise, and highlights the most important price moves.
If you’re serious about using Renko for trading — whether swing, trend-following, or long-term investing — switching to ATR-based sizing can instantly level up your charting strategy.
Try it today in TradingView or Barchart and compare it side by side with a fixed-brick Renko. The difference in clarity is often striking.