Jul 12, 2017 Third, Three Line Break charts evolve based on price, not time. The first chart below shows 85 candlesticks or trading days from March 21st until July 20th. A Three Line Break chart condenses this price action into 44 black and white lines… The Three-Line Price breaks indicate major trend changes. A trend change confirmation is generated when a reversal bar is formed. However, a trend confirmation bar could be late and substantial move to the upside or downside may have already happened. A solution for this problem could be an intra-day trading … Apr 06, 2016
The Three Line Break Oscillator (TLBOSC) was designed to give Three Line Break users an indicator on traditional charts that clearly shows all relevant TLB information (reversal price, current price, extreme price, etc.) in a flexible and vertically condensed fashion. The indicator oscillates about the zero line. Crossing above the zero line represents a positive TLB reversal (buy signal), and Line Break Strategy Entry rule: Long on a bullish line and short on a bearish line. Backtest: Profit factors are shown below for three-line break. Daily time frame, FXCM broker. EURUSD: 1.267, USDJPY: 1.039, GBPUSD: -0.816, AUDUSD: -0.959 S&P500: -0.783, Nikkei225: 1.099 CrudeOil: 1.03, Gold: 1.196 BTCUSD: -0.883 Reference: Steve Nison, Beyond Candlesticks - New Japanese Charting Techniques Three-line break charts incorporate properties of point and figure charts along with those of a standard line or bar chart. The method is suitable for trading vehicles where high-low-close or intraday data is not available, such as mutual fund data, as the technique only requires a single price for each period charted.
11 Feb 2008 How to make money in US stock trade using Three Line Break System. Brought to you by www.bdesoft.com. 12 Jul 2017 3 is the number of recent lines that the close must break before a line is drawn in the opposite direction. Line Break charts. The most popular (and
The following are the basic trading rules for a three-line break chart: Buy when a white line emerges after three adjacent black lines (a "white turnaround line"). Sell when a black line appears after three adjacent white lines (a "black turnaround line"). Avoid trading in "trendless" markets where the lines alternate between black and white. Line Break Trading Strategy With Indicators. It’s also possible to use line break charts in conjunction with standard technical analysis indicators in the creation of a system. Here we have a simple system based on a 3 line break chart with an exponential moving average and the CCI (commodity channel index) oscillator. As you can see trading stocks or futures using the 3 line break chart can be made more intuitive and gets you into trades much sooner than traditional methods such as moving average crossovers. Plus by using the 3 line break charts available only on TopGun Software you can add your regular indicators to the chart as well.
Apr 01, 2020 · In this article, we'll take a look at a break of an 11-month trendline and cover a simple stop-loss strategy that can be used when trading technical signals based on breaks of support/resistance Price usually retests a sloped trend line several times, until it breaks at which point we may have a trend reversal. The more points there are to connect, the stronger a trend line becomes. Different strategies have different rules on how far apart connected price points can be and whether to connect wicks or candle bodies, but all trend lines The trendline connecting the two does not cross prices until after the highest high, point B. Point 1 is the trendline break. Point 2 is the retest, and 3 is a close below the lowest low between points 1 and 2. Point 3 is where price changes trend. 1-2-3 Trend Change: Book References. Two of my books discuss the 1-2-3 trend change method. Trading Strategy to “add on” and this increases my profits fast. This is one my 3 powerful secrets which I explained in Trendline Trading Strategy Secrets Revealed e-book. So now you can see how the Trendline Breakout Trading Strategy compliments the Trendline Trading Strategy.