A Renko Chart is a chart type that also forgoes the time axis and focuses solely on price movement, but it does so with “bricks” of a fixed size. A new Renko brick forms only when the price moves a specified amount in one direction (e.g. 5 pip increments), and bricks are placed at 45-degree angles up or down to each other, creating a stair-step appearance. Small fluctuations are ignored; if price doesn’t move enough, no new brick appears. This produces a chart of uniformly sized bricks that clearly shows the direction of the trend and significant turns. Renko charts are excellent for visualizing support and resistance – for example, a series of rising bricks might break when hitting a resistance level, then start a column of falling bricks. Relevance to EAs: Renko charts are highly valued in automated trading for their ability to filter out market noise and highlight meaningful trends. Many forex robots use Renko-based logic to improve trade timing. For instance, an EA can be programmed to go long when a new upward (white/green) Renko brick forms, and exit or reverse when a downward (red) brick appears, effectively following the trend with minimal lag. Because Renko bricks ignore time, an EA running on a Renko chart will adapt to market volatility – during fast moves it might trigger many trades (as bricks rapidly form), while in a flat market it stays idle. cTrader allows cBots to operate on Renko charts just like on standard time charts, which means strategies can be backtested and executed on Renko data. One practical note is that volume-based indicators don’t apply to Renko (since bricks have no set time/volume), so EAs should stick to price-based indicators or custom logic. Overall, Renko-based robots often excel at trend following and identifying support/resistance bounces, because the chart’s construction inherently confirms a certain price movement before signaling (reducing false alarms). For example, a Renko-focused EA might only consider a trend truly changed after two bricks in the new direction, which is a clear structural shift on the chart. This way, Renko charts help automated systems “wait for confirmation” of a move, potentially increasing accuracy of entries and exits.

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