The Renko graph is a graph made by “bricks” and realized by analyzing the prices of closure in the moments of quotations. The word “Renko” derives from the italian word “renga” that in Italian means, as a matter of fact, “brick”.

You  must be add a “brick”  to the graph whenever the price moves away from a default sum.

To build correctly a Renko graph, you will have to decide a specific date from which you want to start from. In order to place a brick of the same color ( that means that the graph follows the trend’s evolution ) you can either use the absolute value or the percentage graph. Between these two, the percentage is for sure the most relevant and common.

From this point on, if you join an ascending trend, which means that the price of closure of a first brick is higher than the price of the brick that preceded, you will have to add a number of bricks equal to the difference of the given bricks and then divide by the unitary value of every single brick. For every brick you must move to another column.

If the trend changes direction for a value higher than one brick, you will have to move to another column and add a certain number of bricks of different color than the previous ones. This number is given by the difference of price divided by the unitary value of every brick. If the trend’s evolution is lower than the value of a brick, you should ignore it.