JAPANESE CHART READING · 練行足
Renko Ashi Charts
Follow price movement one brick at a time. Learn how box size, reversal rules and source data shape the chart you see.
See how bricks are built →Price movement creates the next brick
A Renko Ashi chart adds a block only when a chosen price movement qualifies. The horizontal axis progresses by bricks rather than equal units of time. Quiet periods can leave the chart unchanged, while one large move can generate several blocks.
01 · TURN PRICES INTO BRICKS
Compare the source prices with the result
Original illustration using invented prices, not historical market data.
Starting at 100, a close of 101 adds nothing. At 102, the first green brick spans 100 to 102. A later close of 104 adds the next brick. A close of 105 adds nothing because the next upward threshold is 106.
| Source period | Actual close | New bricks | Latest brick close |
|---|---|---|---|
| 2 | 101 | 0 | 100 |
| 3 | 102 | 1 | 102 |
| 4 | 104 | 1 | 104 |
| 5 | 105 | 0 | 104 |
| 6 | 106 | 1 | 106 |
| 7 | 105 | 0 | 106 |
| 8 | 104 | 0 | 106 |
| 9 | 102 | 1 | 102 |
| 10 | 103 | 0 | 102 |
| 11 | 104 | 0 | 102 |
| 12 | 106 | 1 | 106 |
The closing price chart contains twelve periods. The Renko Ashi view contains only five bricks. Read the two axes separately: two adjacent bricks may have formed minutes apart or hours apart. Bricks are not a clock.
02 · CONTINUATION AND REVERSAL ARE DIFFERENT
Why a pullback of one box is not enough
Original illustration using invented prices, not historical market data.
Suppose the latest green brick spans 104 to 106. A close at 108 extends the sequence upward. A close at 104 merely returns to the base of that brick. A close at 102 completes the first red reversal brick, spanning 104 to 102.
The move from 106 to 102 is four price units, but the new brick’s height remains two. The reversal does not insert a red brick directly over the last green brick. After that reversal, a close at 100 adds another red brick. To reverse upward from a latest red close of 102, the threshold is 106.
03 · THE SETTINGS ARE PART OF THE ANALYSIS
Compare box sizes before choosing one
Original illustration using invented prices, not historical market data.
A small box responds to smaller changes and can show frequent reversals. A larger box filters more movement, while requiring price to travel farther before a completed change appears. Neither setting is universally best.
| Setting | What to record |
|---|---|
| Fixed box | Absolute size in the instrument’s price units, aligned to its tick size |
| ATR box | ATR length, source timeframe and the platform’s recalculation method |
| Price source | Completed closes, OHLC or tick data |
| Reversal and display | Classic or custom rule, starting anchor and wick settings |
ATR uses recent range information to determine box size. Its value can change as new data arrives, and historical bricks may be reconstructed depending on the platform. The fixed sizes in our diagrams remain constant throughout each dataset.
A chart built from hourly closes can miss movements between those closes. Tick data or a different source interval can generate another brick sequence. Removing equal time spacing from the display does not make the input timeframe irrelevant.
04 · WHAT THE CLEANER VIEW CAN HIDE
Recognise ranges, delays and synthetic levels
Original illustration using invented prices, not historical market data.
In this narrow invented range, price repeatedly moves between 100 and 102. The small boxes keep reversing colour, with little progress beyond the boundaries. Describe the range first rather than treating every reversal as a fresh directional move.
A completed brick records a threshold event, not every price fluctuation. A large jump can create multiple blocks at one observation. Those blocks do not establish separate opportunities to transact at every displayed level.
Use actual quotes for entries, stops and performance checks. A backtest that fills orders at synthetic Renko Ashi levels can show prices that were not available for execution at the assumed time.
05 · CHOOSE THE VIEW FOR THE QUESTION
Renko Ashi is different from Heikin Ashi
Conceptual comparison of three chart types.
Use Renko Ashi to inspect the sequence of qualifying price moves. Use ordinary candles to recover elapsed time, actual extremes and market context. Heikin Ashi averages candle values while retaining a candle for each source period.
If you add Ichimoku to Renko Ashi, its lookback counts refer to bricks rather than ordinary time bars, and its inputs may be synthetic. Do not assume the same interpretation or levels as Ichimoku on a standard chart.
Check your understanding
The latest upward brick spans 108 to 110, with a fixed box size of 2. What happens at completed closes of 109, 112 and 106? Consider each as a separate scenario starting from that original brick.
Reveal the answer
At 109, no new brick appears. At 112, one upward brick spans 110 to 112. At 106, the first downward reversal brick spans 108 to 106. A move of four units from the latest close is required for that reversal, although the brick itself is only two units tall.
Try one controlled comparison
Choose an instrument and save the source interval, price source, starting anchor, box size and reversal rule. Compare two fixed sizes on the same data. Record which moves were omitted and when reversals were confirmed, then inspect the actual prices alongside them.
Continue with Heikin Ashi or return to Knowledge.
Explore related topics
AUTHOR
Kei
Kei is a Japanese forex trader and mentor who has traded since 2013. He teaches Ichimoku in English from the original Japanese texts, with a focus on chart analysis, trading psychology and risk management.
More about Kei →