Updated: August 23, 2025 — Clear rules for recognizing and trading five core Renko patterns, with entries, stops, targets, and mistakes to avoid.
Renko charts filter out small price noise by printing fixed-size “bricks” only after sufficient movement. That makes structure cleaner and pattern recognition more objective. Below you’ll find five proven Renko patterns and exactly how to trade them with confirm-brick rules.
Before you trade Renko chart patterns, tune your brick size with the ATR Renko brick size guide and lock your triggers with the Renko buy & sell signal checklist.
- Double Top/Bottom — Reversal. Entry: Neckline break + confirm brick. Invalidation: Close back across neckline. Target: Pattern height.
- Wedges — Falling = bullish, Rising = bearish. Trade the confirmed break of the wedge boundary; optional momentum/volume confirm.
- Flags — Continuation. Break of the channel in the direction of the pole; invalidation = back inside flag.
- Head & Shoulders — Reversal. Neckline break + confirm brick; stop beyond right shoulder.
- Triple Top/Bottom — Reversal after 3 tests; entry on range break; target = range height.
Renko Chart Patterns Comparison Table
| Pattern | Type | Recognition | Entry Trigger | Invalidation |
|---|---|---|---|---|
| Double Top / Bottom | Reversal | Two similar highs/lows with a clear neckline | Close beyond neckline with a confirm brick | Close back across neckline |
| Falling Wedge | Bullish (reversal/continuation) | Lower highs & lows; converging lines sloping down | Breakout above upper line + confirm brick | Close back inside wedge |
| Rising Wedge | Bearish (reversal/continuation) | Higher highs & lows; converging lines sloping up | Breakdown below lower line + confirm brick | Close back inside wedge |
| Bullish / Bearish Flag | Continuation | Strong pole, then tight channel against the move | Break of channel in direction of pole | Close back into channel |
| Triple Top / Bottom | Reversal | Three similar highs/lows (well-defined range) | Range break with confirm brick | Re-entry into range |
Double Top / Double Bottom
What it is: A classic two-swing reversal with a neckline in the middle.
- Recognize it: Two similar highs (double top) or lows (double bottom) with a clear mid-level.
- Entry: Wait for a close beyond the neckline; enter on the first confirm brick in that direction.
- Stops: 1–2 bricks beyond invalidation (back across the neckline).
- Targets: Height of the pattern projected from the neckline break; trail 1–2 bricks once in profit.
- Mistakes to avoid: Entering inside the range; ignoring nearby major S/R.
Wedges (Falling & Rising)
Key point: Falling wedges tend to be bullish; rising wedges tend to be bearish. Confirm the break with a close outside the wedge.
- Recognize it: Converging swings; falling wedge slopes down, rising wedge slopes up.
- Entry: Trade the breakout: close beyond the boundary + confirm brick.
- Stops: 1–2 bricks back inside the wedge.
- Targets: Conservative = last swing; measured = wedge height from the break.
- Optional confirm: Momentum shift (MACD/RSI) or increasing volume.
Bullish / Bearish Flags
What it is: A brief, tight counter-move (flag) after a strong advance/decline (pole).
- Recognize it: A steep pole followed by a compact channel against the pole.
- Entry: Break of the flag in the direction of the pole; use the first confirm brick.
- Stops: Back inside the flag or beyond the opposite flag line.
- Targets: Pole measured-move; partials at prior swing zones.
- Mistakes to avoid: Trading flags that form after an already extended multi-brick run without a pause.
Head & Shoulders
What it is: A three-swing reversal with a neckline—bearish H&S (tops) or bullish inverse H&S (bottoms).
- Recognize it: Left shoulder → head → right shoulder, with a clear neckline.
- Entry: Neckline break + confirm brick.
- Stops: Beyond the right shoulder.
- Targets: Distance from head to neckline projected from the break; trail once initial target is reached.
- Mistakes to avoid: Entering before a real break; ignoring sloped necklines that move invalidation.
Triple Top / Triple Bottom
What it is: A range with three similar highs or lows where the third test fails and the range breaks.
- Recognize it: 3 tests of the same zone (tops or bottoms) with a clean range.
- Entry: Close beyond the range boundary + confirm brick.
- Stops: Back inside the range.
- Targets: Range height projected from the break; consider partials at intermediate levels.
- Mistakes to avoid: Trading before 3 clear tests; chasing after an extended breakout sequence.
FAQs
Are Renko wedges bullish or bearish?
What’s a good Renko entry confirmation?
Where should I place stops?
Do Renko patterns work on all assets?
Further Reading
- ATR Renko Brick Size: Step-by-Step
- Renko Buy & Sell Signals: Patterns & Examples
- Best Renko Indicators: Full List & Examples
- Renko Trend Trading: 5 Proven Tips
Thinkorswim user? Get Renko configured correctly first with our Thinkorswim Renko setup, then trade the patterns in this guide.
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Education only, not financial advice. Test any approach on your own instruments, brick sizes, and timeframes.