Renko Charts may have a similar look to Heikin Ashi in that both show sustained periods of up or down boxes that highlight the trend.
While Renko charts use a fixed box amount, Heikin Ashi charts are taking an average of the open, high, low, and close for the current and prior time period.
Therefore, the size of each box or candle is a different size and reflects the average price. Heikin Ashi charts are useful for highlighting trends in the same way that Renko charts are. Building the Renko Bricks
The Renko charts filter out the insignificant price movements and focus on the trends.
The flaw of such an approach is that some price information is lost due to the simple brick construction of Renko charts. Therefore, the first step in building a Renko chart is selecting the corresponding box size in pips.
Example
For example, a trading symbol may have a 50 pip box size. In this case, a Renko chart will be built by placing a brick in the next column once the price has surpassed the top or bottom of the previous brick by the box size amount.
Renko charts are most useful for spotting trends, areas of support and resistance, breakouts, and reversals.
However, because of the basic price action nature of the Renko chart, traders often use indicators to provide additional information in their chart and either reinforce or warn against buy and sell signals.
Bluedot charts have a bundle of preset Trend Indicators to use on the charts, like Average Direction Movement Index Rating, variety of Moving Average Indicators, and others. Check Bluedot Indicators Help section for more information on the Indicators and how to use them.