Day trading demands speed, clarity, and precision. That is where Renko charts shine. They filter out noise and highlight clean price action trends, which is exactly why Renko chart day trading has become so popular with traders who want cleaner entries and fewer false signals. Whether you are a beginner or a seasoned trader looking to sharpen your intraday skills, this guide walks you through five effective Renko day trading strategies designed to help you spot trends early, enter with confidence, and manage risk intelligently.
Start with one strategy, test it on a demo account, and only add complexity once you can execute the rules consistently.
- Best for trends: pullbacks + Supertrend
- Best for breakouts: range break + confirm brick
- Best for reversals: support/resistance + W/M confirmation
- Best for scalps: momentum bursts + MACD slope
- Most important setting: brick size (fixed or ATR based)
Table of Contents
Why Renko Chart Day Trading Offers an Edge
Renko charts do not rely on time. Instead, they focus purely on price movement. A new brick prints only after price moves a set amount. That makes Renko useful for day trading because it encourages rule-based decisions and reduces “candle noise” that triggers impulsive entries.
- Clearer trend structure (swings stand out)
- Cleaner entries (confirm-brick logic is easy to apply)
- More disciplined exits (trail by bricks or swings)
Thinkorswim users: Set up Renko correctly first. Here is my Thinkorswim Renko setup guide.
Strategy 1: Renko Breakout Entry With Volume Confirmation
This strategy enters strong directional moves after price breaks out of a consolidation zone, with a simple confirmation that participation is increasing.
Rules
- Brick size: fixed size for the session (do not change mid-day)
- Setup: mark the range high/low (pre-market or last 30–60 minutes of chop)
- Trigger: first brick close beyond the range boundary
- Confirm: volume expansion (or a second confirm brick if you do not use volume)
- Stop: 1–2 bricks back inside the range or beyond the last swing
- Manage: trail 1–2 bricks, or exit on first opposite-colored brick after momentum fades
If you want a simple set of breakout and reversal rules, this pairs well with my examples in Renko Chart Buy and Sell Signals.
Outbound reference: If you want to review classic breakout behavior and range logic, Investopedia has a solid primer on breakouts.
Strategy 2: Renko Pullback Entry in Strong Trends
This strategy catches continuation moves after small pullbacks inside a clear trend. It works best on trending days.
Rules
- Trend filter: price above a moving average, or higher highs/higher lows
- Pullback: 2–3 opposite bricks against the trend
- Trigger: first brick back in the trend direction
- Stop: 1–2 bricks beyond the pullback swing
- Manage: trail under swing lows (longs) or above swing highs (shorts)
For trend filters that stay simple, see 5 Dynamic Renko Chart Indicators for Supercharged Analysis.
Strategy 3: Renko + Supertrend for Early Trend Detection
Renko plus Supertrend can create a clean “bias + trigger” workflow: Supertrend sets direction, and Renko bricks handle the entry timing.
Rules
- Supertrend: start with ATR 10, multiplier 3, then adjust after testing
- Trigger: Supertrend flips + first confirm brick in that same direction
- Stop: beyond the most recent swing, or 1–2 bricks past the Supertrend line
- Exit: opposite Supertrend flip, or a swing break against your position
Outbound reference: If you want the basics of how Supertrend is calculated and why it works as a trailing mechanism, see Investopedia’s overview of the Supertrend indicator.
To avoid the most common day trading mistakes (overtrading, late entries, and stop placement errors), see Top 5 Renko Mistakes.
Strategy 4: Renko Reversal Zones Using Support and Resistance
This contrarian strategy targets reversal points at well-defined support/resistance zones. The edge comes from location first, then confirmation.
Rules
- Mark zones: prior day high/low, overnight range, major swing levels
- Wait: price reaches the zone and stalls (small bricks, failed pushes)
- Trigger: W/M pattern, or a clear reversal brick sequence
- Stop: just beyond the zone (1–2 bricks)
- Target: mid-range first, then opposite boundary if momentum holds
W and M confirmations are simple and effective for reversals. Here is my W pattern walkthrough: W pattern trading strategy.
To improve exits and avoid emotional decisions, see 5 Renko exit rules every trader should know.
Strategy 5: Momentum Burst Scalps With Renko + MACD
This scalping setup uses MACD momentum to confirm fast bursts. It is best during volatile sessions when the market is actually moving.
Rules
- Trigger: MACD slope strengthens (or a signal/zero cross) in the same direction as the bricks
- Entry: first confirm brick after the MACD trigger
- Stop: 1–2 bricks beyond the most recent micro swing
- Exit: small fixed target, or first momentum stall (do not overstay)
Curious how strategy design keeps evolving? Here is my discussion on AI and Renko strategies.
How to Backtest Renko Chart Day Trading Strategies
Before risking real capital, backtest on historical data. Tools like TradingView let you replay price action and apply Renko rules consistently across different markets and sessions.
- Pick one brick size and keep it consistent during the test window
- Write your entry, stop, and exit rules in one checklist
- Log outcomes: win rate, average win/loss, and maximum drawdown
- Forward test in a demo account for 10–14 sessions
If you want a deeper walkthrough, see my backtesting guide: Backtesting Renko chart strategies.
Bonus Tips for Mastering Renko Day Trading
- Choose the right brick size: too small means constant flips, too large means late entries. Start here: ATR based Renko brick sizing.
- Trade fewer, better windows: open, lunch, close (do not force signals in dead zones).
- Use one confirmation only: trend filter or momentum. Do not stack four indicators.
- Respect the stop: if the setup invalidates, exit and wait for the next clean structure.
FAQs About Renko Day Trading Strategies
Are Renko charts good for day trading?
What brick size should I use for Renko day trading?
Which indicators work best with Renko day trading?
Is Renko good for scalping?
Conclusion: Start Small, Build Consistency
These five Renko chart day trading strategies can help you trade with more clarity and discipline. You do not need to master all five. Pick one that matches your personality and market conditions, then refine it through backtesting and demo reps.
If you want more tutorials and examples, you can subscribe to my channel here: Renko Trading Channel on YouTube.