After building a Renko graph, you must be able to analyse it. The first thing to know is that the graph does not involve time: on the graph, as a matter of fact, you will notice price variations without considering the elapsed time.

You must keep in mind that if a price mutates from its previous value, you will have to count the amount of bricks to which it moved and draw every brick moving column to column. Therefore, there is no brick different from another but they are all the same.

The moment in which the trend changes direction ( which means that you have to draw new bricks ) is known as the reversal.

The critical value of the Renko graph is the size of every brick. Very small values will create false signals while very big values will not allow you to judge correctly the trend. There is no standard or recommended value. Everything depends on your way of dealing with the trade. Therefore, you should understand your ideal value for every single brick after various attempts.

Finally, keep in mind that it is possible to draw bricks that represent a descending trend in black and an ascending trend in white, as you can notice in the image.