Brick 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.

This indicator calculates the strength of bulls and bears. However, no statistical calculations are applied such as summation, average, or multiplication. It calculates it by looking at the bullish and bearish points in the price pattern.

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

The number of bricks in the pattern is calculated using the indicator and displayed below the chart. Two lines are plotted below the chart when the brick indicator is plotted. The black line represents the bullish print line that calculates the number of bullish bricks in the pattern. An indication of the number of bearish bricks in the pattern can be seen by the red line which indicates a bearish print line.

When the bullish line is above the bearish line, the bulls are in control and the uptrend is strong. When the bearish line crosses above the bullish line, it indicates that the bears are in control and there is a strong downtrend.

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.