Learn how to determine the optimal brick size for your Renko chart.
Although Renko charts are useful for analyzing market patterns, the results you get depend heavily on the size of the bricks. We’ll walk you through the easy formula for figuring out what size bricks you should use.
When it comes to crafting a successful trading strategy, using the optimal brick size on a Renko chart is essential. To learn how to calculate and use it in your trading, read our detailed guide.
To get you started, here is an example of the ATR calculating method:
- Identify the timeframe for the chart.
- Calculate the Average True Range (ATR).
- Set the brick size based on ATR value and chart’s specific needs.
- Use data from previous bars to confirm your selection is correct!