The Japanese Renko chart & trading system

 - an excerpt -

   Renko charts originated in the early days of the markets being traded in Japan, some 300+ years ago.
   To see a 5-minute Renko chart, click here; to see a daily Renko chart, click here.

   None of the traders I know use Renko charts. The blame is on the lack of literature in English on this subject. Along the years, the charts lost their shine probably because it’s in the human nature to keep on searching even after the treasure is found!
   Furthermore, the bits and pieces of information on Renko in circulation nowadays make eyebrows rise: the Renko’s sheer simplicity invites suspicion. Perhaps this is because we conditioned ourselves for too long into believing that if a theory is not complicated enough, we don’t stand a chance of winning.
  Millions of dollars have been spent by the financial institutions on the research and development of new and sophisticated trading systems but nothing in reviving the ancient fine art of the Renko! … Perhaps those financial institutions operate trading systems that are more profitable than the Renko, but as far as the small investor is concerned, there are two choices:

• Either to handle a simple, easy-to-understand and execute, yet powerful and time tested trading system (such as Renko) or,
   
• To sweat over developing and maintaining a system which can only get more and more complicated as time goes by without actually generating or guaranteeing more and more profits.

   To the small speculator who can be disarmed quickly in the battlefield where the Cents fight the Dollars and who needs all the help he can get, the old Renko wisdom is a newly sharpened weapon for the war of investing. With their equal brick size and with their relentless trend detection ability, the Renko charts convey equilibrium and harmony where there is little. The Renko’s exquisite stairway design promises personal fulfillment to those who care not only to climb up but also to start the journey.