Renko Indicator
The Renko Indicator is a type of charting technique used in technical analysis to filter out market noise and focus on price movements. It generates "bricks" that represent price movements of a specific size (the "brick size"), typically determined by the trader. When the price moves above the previous brick's high by the set brick size, a new upward brick is created; conversely, a new downward brick is formed when the price falls below the previous brick's low by the brick size. Key rules include setting the brick size according to the asset's volatility, using the indicator to identify trends (uptrend occurs when there are consecutive upward bricks, while a downtrend is indicated by consecutive downward bricks), and implementing stop-loss orders for risk management at points that oppose the trend.