Price Chart Types — Formation Rules (Time, Distance, Reversal, Volatility, Activity)

Candlesticks / OHLC

A new bar forms every fixed interval (e.g., 1m, 5m, 1h, daily). This preserves timing and session rhythm, but can add “empty” bars during slow periods and very dense bars during fast bursts.

• Use when: You need session context, news timing, and a universal reference for analysis.
• Parameters: Timeframe (multi-TF views help); consider session separators and RTH/ETH filters.

Renko

Prints a new brick each time price advances by a fixed box size. Bricks stack in one direction until price moves enough to reverse and start a new column. Variants (Median, Turbo/Hybrid) adjust open/close placement or wick filtering.

• Use when: You want trend clarity, noise reduction, and equal step size across the move.
• Parameters: Box size (fixed or ATR-based). Larger = smoother trends; smaller = more detail.

Point & Figure

Columns of X (up) and O (down). Box size controls sensitivity; a new column starts only after a defined reversal amount (e.g., 3 boxes). Removes the time axis to emphasize levels, breakouts, and targets.

• Use when: You focus on support/resistance, patterns (double-tops/bottoms), and clean breakout logic.
• Parameters: Box size and reversal (commonly 3-box). Try ATR-based sizing for cross-asset consistency.

Kagi

A single line that reverses only after price moves by a defined reversal amount. When price exceeds the previous high/low, the line thickens or changes color — switching between Yang (demand dominance) and Yin (supply dominance). Filters small noise while highlighting sentiment flips and key swing levels.

• Use when: You want to visualize supply–demand shifts and trend reversals without time noise.
• Parameters: Reversal size (absolute or ATR-based). Larger = smoother; smaller = more turns.

Line Break

Draws a new up/down line only if the close breaks the extreme of the last N lines (classic is 3). This ignores minor back-and-forth and focuses attention on decisive pushes.

• Use when: You prefer a simple, time-free way to spot momentum shifts and pullback completions.
• Parameters: Number of lines (N). Higher N = stricter confirmation, fewer but stronger signals.

Range Bars

Each bar spans a fixed high–low range (e.g., 10 ticks). Once the range completes, the bar closes and a new one begins. Normalizes move size and removes time distortion from fast/slow periods.

• Use when: You want normalized volatility and clearer pattern repetition across conditions.
• Parameters: Range height (ticks/points). Consider ATR-relative sizing across instruments.

Ticks / Trades Bars

Each bar contains exactly N trades (ticks). Structure aligns with transaction count, not time, revealing bursts of activity and quiet patches directly.

• Use when: You want to anchor structure to trade frequency and spot participation spikes.
• Parameters: Trades per bar (N). Pair with filters (e.g., session, instrument) for consistency.

Volume Bars

Each bar accumulates exactly N units of volume/contracts. Bars finish faster during heavy trading and slower during quiet periods, aligning structure with traded size.

• Use when: You care about participation and want bars to reflect actual size moving the market.
• Parameters: Volume per bar (N). Consider ATR/average-volume guides across instruments.

Timeless Bars + Order-Flow

Once bar formation encodes meaningful movement, add footprints/clusters (Bid×Ask, Delta, trades), volume profiles, and VWAP for execution clues—absorption, imbalances, and initiative vs. responsive flows. Learn more in the Footprint Chart Guide.