Brick Count Indicator

Creator: Definedge

The Brick Count indicator is a Renko chart specific indicator developed by Prashant Shah.

The indicator is designed using the bricks and diagonal plotting properties of the Renko chart.

Brick count indicates the strength of price action and the amount of activity within a price pattern. Two lines are plotted below the chart when the Brick Count indicator is used. Brick count is indicated by the black line, while the average brick count is shown by the red line.

This indicator is a price-based indicator plotted on a chart based on the counting of the bullish bricks and the bearish bricks on the Renko chart.

Indicator that determines how many bullish and bearish bricks are present in a pattern. The rising indicator indicates a high level of activity and a high number of bricks being printed. An indication of a dull market can be found in the low reading of brick counts.

A rising brick count above its moving average indicates high activity, whereas a falling brick count below its moving average indicates low activity.

Prashant Shah introduced this indicator in his Renko chart book. Click here to learn more about this indicator.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.