5 Powerful Renko Chart Patterns to Know

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.

If you want to see how I apply Renko patterns and trend structure in real long-term investing decisions, take a look at my Renko Investing Strategy – How I Use Renko Charts for Long-Term Decisions.

Quick Read — Pattern Playbooks

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.

Skip to the comparison table • Jump to FAQs

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.

Double top on Renko chart with neckline breakout and confirm brick

Double bottom on Renko chart with neckline breakout and confirm brick

If you want a simple framework for deciding where to exit after these Renko patterns complete, you’ll find my guide on 5 Renko exit rules every trader should know extremely helpful.

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.

Falling wedge (bullish) and rising wedge (bearish) examples on a Renko chart

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.

Bullish flag on Renko chart showing pole, tight flag channel, and breakout continuation

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.

Triple bottom on Renko chart with range breakout confirmation

Trading Renko Patterns with Confirmation Signals

Renko patterns like M, W, and Head & Shoulders become more reliable when paired with confirmation tools such as volume spikes or moving average crosses. For example, a W-pattern backed by a bullish volume surge signals strong reversal potential. Always look for confirmation before entering; it helps filter out false starts. Adding a brief note or screenshot improves clarity for readers reviewing examples.

Understanding confirmation techniques enhances pattern accuracy. Understand brick-size calculation.

FAQs

How reliable are Renko chart patterns?

When supported by momentum or volume confirmation, Renko patterns offer higher accuracy and clearer reversals.

Which Renko pattern gives the earliest signal?

The W-pattern often spots reversals early, especially following extended downtrends.

Are Renko wedges bullish or bearish?

Falling wedges tend to break upward (bullish) and rising wedges tend to break downward (bearish). Trade only after a confirmed break and consider a momentum/volume confirmation.

What’s a good Renko entry confirmation?

A confirm brick that closes beyond a pattern boundary or neckline. Many traders add MACD/RSI alignment or a Supertrend flip.

Where should I place stops?

Common approaches: 1–2 bricks beyond invalidation (back across neckline/inside pattern) or just outside the broken boundary. Trail by 1–2 bricks or swing-based once price trends.

Do Renko patterns work on all assets?

They can, but reliability depends on brick size and volatility. Start with ATR-based sizing and validate on recent data before committing.

Patterns are powerful — but even the best setups can fail without proper discipline. Want to learn why technical analysis without discipline often leads to bad trades? Watch my video on why technical analysis fails without discipline to hear the real trading mistakes that reshaped how I trade.

Let’s Connect

Subscribe to the Renko Trading Channel for weekly updates.

Education only, not financial advice. Test any approach on your own instruments, brick sizes, and timeframes.

5 Powerful Renko Chart Patterns and How to Trade Them