Renko Charts - Yahoo ed. 1.4.0

This application is currently the sole provider of Renko charting on the market, utilizing a data feed from Yahoo Finance. As a result, users can effortlessly access the daily, weekly, or monthly Renko charts for any stock listed on Yahoo Finance.

Renko charts, characterized by their unique diagonal lines of either filled or hollow boxes, operate independently of time, lacking consistently spaced time axes. The term "Renko" is derived from the Japanese word "Renga," meaning "brick." The individual filled and hollow squares on these charts are commonly referred to as "bricks," a concept popularized by Steve Nison in his influential book, Beyond Candlesticks.

A key feature of Renko charts is the predefined "Brick Size," which determines the addition of new bricks to the chart. When price movements exceed the Brick Size above or below the last brick, a new brick appears in the chart's subsequent column. Hollow bricks are indicative of rising prices, whereas black bricks signify falling prices. Importantly, only one type of brick can be added per time period, with bricks aligned so their corners touch and no more than one brick occupying each chart column.

It is crucial to understand that prices can indeed exceed the bounds of the current brick; however, new bricks only materialize when prices completely "fill" the designated brick area. For instance, on a 5-point chart, an increase in prices from 98 to 102 would result in the addition of a hollow brick extending from 95 to 100, while a further increase to 105 would not prompt another addition. Consequently, the chart may suggest that prices stagnated at 100.

Moreover, there may be several consecutive periods in which Renko charts remain unchanged. A significant price movement is required for new bricks to be introduced. Green bricks are understood as bullish indicators, while red bricks represent bearish trends. This simplifies the interpretation process for users.

Renko charts are especially advantageous for identifying trends and their direction. By filtering out minor price fluctuations that do not meet the Brick Size requirement, these charts facilitate clearer trend observation. Some investors prefer to wait for two or three bricks to confirm a new trend direction before establishing their positions.

Within this app, the size of each brick is determined by the percentage of the closing price.