3 line break chart software

There are many uses for 3 line break charts, you can use them for entries, exits, and make wonderful places to trail your stops to catch the majority of the move. You can see an examples of trading using 3 line break charts below. Three Line Break Charts Traders are always looking for ways to recognize market trends and direction. Below is a traditional 15 min candle chart zoomed out to see 5 days worth of data along with a 20 period simple moving average. Below is a 15 min Three Line Break chart with the same moving average.

TopGun Software charting program is totally unique in that our 3 Line Break indicator can be drawn on top of a normal candle or bar chart! Most 3 line break charts do not have a time axis and you can not draw trend lines or use any sort of indicators such as the moving average you see below. It is a fantastic twist on the more traditional methods of charting and really does assist you in calling the turn. Most charting packages, free or paid for, should provide this style of chart.

It works very well! If you are interested in learning more about Line Break charts then our e-learning course may help:. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

If the current closing price is the same or the move in the opposite direction is not large enough to warrant a reversa,l then no new line is drawn. The user defines the Number of Lines value. The current close is then compared to a previous line close. If 3 is the user-defined value, then the current close is compared to the close 2 lines ago the current line plus the 2 previous lines makes a total 3.

The appropriate line is then drawn or not drawn based on the above guidelines. Very much like Kagi Charts and Renko Charts, Line Break Charts are popular because of the way that they filter out noise and make price movements easy to digest and understand. Keep in mind that only the most recent line must be black down.

The line just before this black line can be white up or black down. It is the low of these two lines that dictates the reversal point. The chart below shows Dell Inc DELL with three 2-line reversals; the first two formed with two black lines, while the third formed with a white line and a black line.

The horizontal red lines mark the reversal point, which the white line exceeded to forge the reversal. If the most recent line is white up , then the low of the last two lines marks the reversal point. A close below this low would call for a black line to note a price reversal. Keep in mind that only the most recent line must be white up. The line just before this white line can be white up or black down ; it is the low of these two that decides the reversal point.

The horizontal green lines mark the lows or reversal points, which the subsequent black line exceeded to forge the reversal. As the name implies, the Three Line Break Chart is all about breaking three lines. Two line reversals can occur in a trading range or as a continuation of the bigger trend. A Three Line Break, on the other hand, denotes a stronger move that can signal a trend reversal.

A bullish trend reversal occurs when three black lines form and a single white line breaks the high of these three lines. A bearish reversal occurs when three white lines form and a single black line breaks the low of these three lines. The downtrend starts with the first black line on June 6th.