MT4 indicator (3LineBreak.mq4)
6:00 AM
By
Bamsyul
Setup tips:
1. Switch your charts from Candlestick to Bar charts for a better view of the indicator.
2. Review the indicator settings: instead of default 3 Line break you can test it later with 2 or 5 line breaks or more. After reading the indicator description below, you'll know how it works.
We'll use the default settings = 3.
How to trade with 3LineBreak.mq4 indicator
3Linebreak indicator was written based on the rules 3 line break method - 3 line break charts.
It's a simple yet fundamental method, based on the price action rather than time.
The rules of 3 line break chart:
- if the price rises above the previous high (all calculations are based on the closing price), then we have a new bullish (blue) bar.
- if the price falls below the previous low, we have a new bearish (red) bar.
- if the price neither rise above nor falls below the previous high/low, there are no new bars drawn.
However, this is not all. When the price is trending well, and 3 consecutive bearish (or bullish) bars have been formed, there is an additional rule:
- if a rally is strong enough to produce 3 consecutive bullish bars (or more), then should the price start falling, it has to go past the lowest point of the last 3 bullish bars before a bearish bar can be drawn.
- if a sell-off is strong enough to produce at least 3 consecutive bearish bars, then in order to draw a new bullish bar, the price should rise above the highest point of the 3 last bearish bars.
3 Line break charts look clear and pretty even on 1 minute time frame.
3LineBreak indicator eliminates noise from the charts and allows to focus on the very essence of a trend - the price action.
Since there are no fixed price margins and no time parameters being involved, the price is able to guide us through trends and reversals.
3 Line Break method is not for those traders who are looking for market tops and bottoms, as the indicator will need time to confirm trend reversal, but rather for those who are willing to accept delays in exchange for the ability to be in the right trend.
Download indicator: 3LineBreak.mq4
1. Switch your charts from Candlestick to Bar charts for a better view of the indicator.
2. Review the indicator settings: instead of default 3 Line break you can test it later with 2 or 5 line breaks or more. After reading the indicator description below, you'll know how it works.
We'll use the default settings = 3.
How to trade with 3LineBreak.mq4 indicator
3Linebreak indicator was written based on the rules 3 line break method - 3 line break charts.
It's a simple yet fundamental method, based on the price action rather than time.
- if the price rises above the previous high (all calculations are based on the closing price), then we have a new bullish (blue) bar.
- if the price falls below the previous low, we have a new bearish (red) bar.
- if the price neither rise above nor falls below the previous high/low, there are no new bars drawn.
However, this is not all. When the price is trending well, and 3 consecutive bearish (or bullish) bars have been formed, there is an additional rule:
- if a rally is strong enough to produce 3 consecutive bullish bars (or more), then should the price start falling, it has to go past the lowest point of the last 3 bullish bars before a bearish bar can be drawn.
- if a sell-off is strong enough to produce at least 3 consecutive bearish bars, then in order to draw a new bullish bar, the price should rise above the highest point of the 3 last bearish bars.
3 Line break charts look clear and pretty even on 1 minute time frame.
Since there are no fixed price margins and no time parameters being involved, the price is able to guide us through trends and reversals.
3 Line Break method is not for those traders who are looking for market tops and bottoms, as the indicator will need time to confirm trend reversal, but rather for those who are willing to accept delays in exchange for the ability to be in the right trend.
Download indicator: 3LineBreak.mq4
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