For Australian investors navigating the wild swings of 2025’s share and crypto markets, filtering out the noise has never been more critical. While candlestick and line charts dominate most trading platforms, a growing number of savvy Aussies are turning to Renko charts for a clearer, less cluttered view of price action.
What Are Renko Charts? The Basics Explained
Originating from Japan, Renko charts break from the traditional time-based charting method. Instead of plotting every price move over time, Renko charts focus solely on price movement, representing it with a series of uniform bricks (or 'blocks'). A new brick only appears when the price moves a set amount—ignoring small fluctuations that often send traders on an emotional rollercoaster.
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Time is irrelevant: Bricks are added only when price moves by a specified amount (e.g., $10 per brick).
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Bricks filter out noise: Sideways or choppy markets appear as flat lines, while genuine trends stand out clearly.
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Colour-coded: Upward bricks are typically one colour (e.g., green), downward bricks another (e.g., red), making trend reversals easy to spot.
This approach helps traders identify true trends, ignore market 'chatter,' and avoid knee-jerk reactions to short-lived price blips.
Why Renko Charts Are Catching On in Australia in 2025
With volatility still elevated after the global shifts of 2024, many Aussie investors are tired of being whipsawed by unpredictable market moves. Renko’s noise-filtering qualities have made it a favourite among:
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ASX share traders seeking to ride longer trends and ignore micro-fluctuations
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Crypto investors dealing with 24/7, high-volatility environments
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CFD and forex traders who need to manage risk with tighter stop-losses
Recent updates to trading platforms in Australia—such as enhanced Renko support on platforms like IG Markets and SelfWealth—have made it easier than ever to add Renko charts to your analysis toolkit.
In 2025, ASIC’s continued warnings about retail investor losses have also prompted many to seek out more disciplined, rules-based systems. Renko’s simplicity is its superpower: you set your brick size, follow the trend, and avoid emotional trading.
How to Use Renko Charts for Smarter Trading Decisions
Renko charts excel at highlighting trend direction and potential reversals. Here’s how many Australian traders are using them in practice:
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Setting the right brick size: A larger brick size filters out more noise but may lag on trend reversals. A smaller brick size is more responsive but can capture more false signals. Many traders experiment with different sizes (e.g., 1% of asset price, or a fixed $ amount) to match their risk tolerance.
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Spotting trend changes: A colour shift in bricks (e.g., from green to red) can signal a new trend. Some traders combine Renko with moving averages or momentum indicators for confirmation.
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Managing risk: Renko’s clarity makes it easier to set stop-losses just beyond the most recent brick, potentially reducing whipsaw losses.
Example: In early 2025, an ASX investor tracking CSL Limited set a $2 brick size on the Renko chart. The chart filtered out small price swings, making a mid-February breakout and subsequent uptrend obvious—well before it was clear on traditional candlestick charts.
Limitations and Smart Use of Renko
No chart type is a silver bullet. Renko charts ignore time, so you could miss subtle shifts that happen quickly. They’re best used as part of a broader toolkit, alongside fundamental research and risk management strategies. And remember: brick size selection is crucial—too large and you miss opportunities; too small and the noise creeps back in.
For investors keen to test Renko charts, most major Australian brokers now offer this feature, and free demo accounts make experimentation risk-free. In 2025’s volatile landscape, adopting new perspectives like Renko could be your edge in making smarter, calmer decisions.