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MetaQuotes Software Corp.  

New article Indicator for Constructing a Three Line Break Chart has been published:

Previous articles considered Point and Figure, Kagi and Renko charts. Continuing the series of articles about charts of the 20th century, this time we are going to speak about the Three Line Break chart or, to be precise, about its implementation through a program code. There is very little information about the origin of this chart. I suppose it started in Japan. In the USA they learned about it from "Beyond Candlesticks" by Steve Nison published in 1994.

As well as in the charts mentioned above, the time range is not taken into account when constructing the Three Line Break chart. It is based on newly formed closing prices of a certain timeframe, which allows filtering minor fluctuations of a price in relation to the previous movement.

Steve Nison in his book "Beyond Candlesticks" described eleven principles of plotting this chart (p. 185). I have consolidated them into three.

  • Principle №1: For construction select an initial price and then, depending on whether the market moves up or down, draw an ascending or descending line. It will mark a new minimum or maximum.
  • Principle №2: When a new price falls below the minimum or exceeds the maximum, we can draw a descending or ascending line.
  • Principle №3: To draw a line in the direction opposite to the previous movement, the minimum or maximum have to be passed. At the same time, if there is more than one identical line, then the minimum or maximum is calculated based on two (if there are two consecutive identical lines) or three (if there are three or more consecutive identical lines) of them.

Let us take a closer look at the example of a classic chart construction based on historical data (fig. 1).

Fig.1 Example of constructing a Three Line Break chart (EURUSD H1 27.06.2014)

Fig.1 Example of constructing a Three Line Break chart (EURUSD H1 27.06.2014)

Author: Dmitriy Zabudskiy

dhrubahaz
5
dhrubahaz  
MetaQuotes:

New article Indicator for Constructing a Three Line Break Chart has been published:

Author: Dmitriy Zabudskiy

Can this be used for MT4 platform?
Dmitriy Zabudskiy
5385
Dmitriy Zabudskiy  
dhrubahaz:
Can this be used for MT4 platform?

Long ago, not write on MT4. I think need modification for use on MT4.

Chang Suk Chung
530
Chang Suk Chung  

This is very excellent program and article.

Thanks very much.

Dmitriy Zabudskiy
5385
Dmitriy Zabudskiy  
jcs14567:

This is very excellent program and article.

Thanks very much.

Thanks for the comment.
Muhammad Elbermawi
3086
Muhammad Elbermawi  

Thanks for the author for the great article.

While I was exploring the MQL5 Markets I found a Three Line Break for MT4 and it is Free.


Here is the link:

https://www.mql5.com/en/market/product/3123


Regards

Technical Indicator Line Break Chart MT4
Technical Indicator Line Break Chart MT4
  • 2014.02.21
  • Daniel Lewis
  • www.mql5.com
This indicator displays a Line Break chart in the main chart window. To view the line break chart on its own, change the main chart window to display a Line Chart and then change the "Line chart" color to "None" in the F8 properties dialog. When...
karlson3
29
karlson3  
Hi, thank you for your article. Is it possible please for you to convert it in C# language? Many thanks in advance.
Dmitriy Zabudskiy
5385
Dmitriy Zabudskiy  
karlson3:
Hi, thank you for your article. Is it possible please for you to convert it in C# language? Many thanks in advance.
Hi! I'm writing only on MQL5. Programming is my hobby, and I have very little time to do them.
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