Just getting started with Renko charts and wondering how to build a strategy that actually works?
In this beginner-friendly guide, I’ll walk you through a simple Renko chart strategy that’s helped me cut through the noise, stay patient, and trade with confidence.
Whether you’re brand new to Renko or want a clean reset from traditional candlestick chaos — these rules will give you a solid foundation.
🎥 Prefer to watch?
Here’s a step-by-step video walkthrough of the Renko chart strategy for beginners.
I’ll show you exactly how to use trendlines and chart patterns like W and M formations to make smart, patient trading decisions.
ATR-Based Renko Chart Brick Size Calculation: Proven Tips and Tricks
Let’s dive in.
- 🧱 Follow the bricks — don’t guess the reversal
- 📉 Use a trendline to confirm the overall direction
- ⏳ Be patient — fewer signals, stronger confidence
Table of Contents
🧱 1. Follow the Bricks — Don’t Guess the Reversal
Renko charts are built on price movement, not time. That means every new brick shows meaningful direction.
Instead of trying to catch a bottom or top, follow the bricks:
- Wait for a new green brick to form before entering long
- Wait for a new red brick before shorting
- Don’t jump in just because you “feel” like a reversal is coming — let the chart prove it
💬 This rule alone keeps me from overtrading. When you follow the bricks, you follow structure.
📉 2. Use a Trendline to Confirm the Direction
Renko is clean on its own — but when you add a simple trendline, it becomes incredibly powerful.
Here’s what I do:
- Draw a trendline across recent higher lows (for uptrend) or lower highs (for downtrend)
- Only trade in the direction of the trendline
- If the trendline breaks and a reversal brick forms? Time to step aside or take profit
💬 Renko + trendline = confidence. It helps me stay in winning trades and exit when the structure shifts.
⏳ 3. Be Patient — Fewer Signals, Stronger Confidence
Renko isn’t like candlestick charts that print every minute — and that’s a good thing.
Fewer bricks = fewer signals = less stress
- You might only get 2–3 solid signals a month
- That’s fine — each signal is cleaner and less reactive to noise
- Wait for confirmations instead of trying to time every wiggle
💬 If you learn to wait, the good trades stand out clearly on a Renko chart.
❓ FAQ
What is the best Renko chart strategy for beginners?
A simple strategy is to follow the bricks in the direction of the trend and confirm entries using a trendline. It’s clean, visual, and beginner-friendly.
How many bricks should I wait for before entering a trade?
Many traders wait for at least 1–2 bricks in the new direction to confirm a trend change — especially after a breakout or trendline test.
Are Renko charts good for long-term trading?
Yes! Renko charts filter out small fluctuations, making them ideal for swing and long-term trading where structure matters more than noise.
🔗 Want to explore Renko charts further?
📌 Putting It All Together
If you’re just starting out with Renko, the best thing you can do is keep it simple and repeatable. These three rules — follow the bricks, confirm with trendlines, and stay patient — give you a clean foundation without overcomplicating your trades.
Remember: Renko isn’t about chasing every move. It’s about waiting for structure and letting clarity drive your decisions.
👉 Ready for your next step? Check out this guide on how to spot buy and sell signals with Renko for more trade-ready setups.
🧩 Final Thought:
Renko charts aren’t about making dozens of trades a week. They’re about stepping back, seeing the big picture, and taking action only when it matters. That’s why I keep coming back to them.
