# Renko Boxes

Renko Boxes is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Overlays volatility-adaptive Renko bricks directly on the candlestick chart, sizing each brick from the Average True Range so the structure adjusts to market conditions. Green and red boxes with dotted average lines track the active trend, and reversal dots mark confirmed flips. Renko noise filtering without giving up time-based candles.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 17, 2026.
- Access: free.
- Concepts: [Renko](https://www.luxalgo.com/library/concept/renko/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn57rf007cvhsgl9jrfc5p
- Page: https://www.luxalgo.com/library/indicator/renko-boxes/

**Renko Boxes** overlays [Renko](https://www.luxalgo.com/library/concept/renko/) bricks directly on the candlestick chart, sizing every brick from the Average True Range so the structure breathes with volatility instead of relying on a fixed box size. You keep candles, wicks, and time context while the bricks strip the tape down to meaningful directional movement.

## How to Trade the Renko Boxes?

- **Green boxes with a green dotted line**: a bullish sequence. Price keeps closing above the prior brick's upper threshold.
- **Red boxes with a red dotted line**: bearish pressure. Closes keep breaking the lower threshold.
- **Reversal dots**: circular markers printed exactly where the Renko trend flips; a flip requires price to travel more than one full brick against the active direction, filtering out one-bar noise.
- **Dotted average line**: tracks the median of the current brick, a smoothed trend guide usable as a trailing bias reference.

Because brick size follows ATR, the overlay adapts on its own: bricks expand in volatile phases to avoid over-sensitivity and contract in quiet ones to stay responsive. Strong impulses and gaps are handled cleanly too: the indicator counts how many bricks were crossed and updates its levels so the structure never drifts from real price.

## Renko Boxes Settings

- **ATR Length**: the lookback behind the brick-size calculation. Shorter values react faster, longer values produce smoother, more stable bricks.
- **ATR Multiplier**: scales brick size. Higher multipliers filter more noise with larger bricks, lower ones generate signals sooner.
- **Bullish Color / Bearish Color**: the colors applied to boxes and their average lines.

## Frequently Asked Questions

### Why use an overlay instead of a separate Renko chart?

A standalone Renko chart abandons time and candle detail. The overlay keeps standard price action available (wicks, session context, other tools) while adding the brick structure on top, so both reads coexist in one view.

### How should I tune it for my trading style?

Scalpers usually run a smaller ATR Multiplier for tighter structure and quicker flips, while swing traders benefit from larger bricks that ignore minor fluctuations and track macro trends. Treat ATR Length the same way: shorter for responsiveness, longer for stability.

### Is Renko Boxes free, and what pairs well with it?

Yes, free on the LuxAlgo Library, and testable in Quant, our coding agent, from this page. Trend followers often run it beside [Supertrend](https://www.luxalgo.com/library/indicator/supertrend/), another ATR-driven tool, to cross-check trailing bias. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

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- [Kagi](https://www.luxalgo.com/library/indicator/kagi/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/kagi.md
- [Custom Indices/baskets](https://www.luxalgo.com/library/indicator/custom-indices-baskets/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/custom-indices-baskets.md
- [Volume-adjusted Time](https://www.luxalgo.com/library/indicator/volume-adjusted-time/) (Meta & Composition): markdown at https://www.luxalgo.com/library/indicator/volume-adjusted-time.md

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Source: https://www.luxalgo.com/library/indicator/renko-boxes/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/