• : December 19, 2020
  • : B. Krishnakumar

Renko System Matrix


I wanted to digress a bit this week and talk about the Ratio System Matrix feature in TradePoint software. I like the Multi-brick breakout pattern in Renko and I wish to use this pattern in the system matrix in order to identify candidates.

Here is the menu option where you can access this feature.


 
Before using the Ratio System Matrix, you need to define scanners beforehand in the Back testing´âáSystem Builder option and only these scanners can be used in the System matrix. I have already created a custom scanner for multi brick breakout along with moving average condition and I have run the Renko Matrix Scanner.

If you notice on the image above, the System Matrix feature is available for P&F charts and Relative Strength charts too. The advantage with System Matrix is that the user can run different scanners in each box size or choose the same scanner in different box sizes and the results are generated for chosen universe or scrip group.

I decided to run the multi brick breakout across multiple brick size to identify stocks where multi brick breakout is triggered. Have a look at the screenshot below.



If you notice, a score of 1 is assigned if the pattern is triggered in a particular brick size and score of 0 is assigned if the pattern is not triggered. I have sorted the above table in the descending order of Total Score to identify candidates where this pattern is triggered in multiple brick sizes.

What I like about the multi brick pattern is that it represents a breakout above significant resistance. And I consider the multi brick breakout in Renko to be more inclusive and powerful compared to the Multi column breakout in Point & Figure.

If you notice, there are interesting candidates from the above list. Let us just take a closer look at say Ashok Leyland chart.


 
Multi brick breakout triggered in 1% brick size. And this pattern is unlikely to be captured in some instances in the Point & Figure chart. So, I like this pattern and I find this highly effective in identifying breakouts.

Featured below is Berger Paints chart in 3% brick size.


Hope you find this system matrix tool interesting and explore it further.

Just a bonus tip. How about using RS System Matrix to identify breakout candidates across multiple box size in Point & Figure Relative Strength Chart. You can identify stocks that are getting into some serious momentum breakout across multiple box sizes and you can check the price chart for further analysis.