By popular demand….The Three Line Break chart, also called Three Price Break, or Bricks in John Carter’s Book Mastering the Trade, is a time independent charting method similar to point and figure charts made popular in Steve Nison’s book Beyond Candlesticks. A new brick in the series is formed only when the closing price exceeds the high or low of the prior brick. The trend remains in the current direction until price “breaks” the high or low of the third brick back in the series. The advantage is that the price movement required for a reversal is not fixed but rather depends on the progression of the price action. I’ve coded options to display the price bars color coordinated with the Three Line Break color, gray for closer inspection of the bricks, or the user’s default colors. (Note: The Three Line Break will be posted to the forum as part of this weekend’s Pro Subscriber update.)
Three Line Break
Yummy…
Eric, what does the shaded area indicates?
what does the shaded area indicates?
As the brick begins to extend to the right (no new brick indicated by price action) it begins to shade to allow for better visualization. Unfortunately, I cannot shade bricks containing only one bar as thinkScript does not allow for this.
-Eric
TOS has been wanting to release a feature called RANGE BARS which are available in some other trading platforms and integrated into trading methods like http://www.WoodiesCCIClub.com and one of http://www.RockwellTrading.com ‘s (Bollinger Bands + MACD). It appears this study achieves about the same thing but presents the info as an overlay on the price bars but COULD be adapted to display differently or as a lower study. My compliments. TOS should hire you, Eric. Amazing as always. Tremendous cumulative body of work you’ve developed and shared so professionaly. Outstanding.
sick! ive been looking for this everywhere! and you mean to tell me this was available since April!?!? WOW… im stunned yet happy at the same time
I have combined this “Three Line Break” study with my version of the “Guppy Multiple Moving Average”, a RSI, the StochasticFull, Darvis Box, and an Oscillator for the GMMA and created a systme where I am making a killing on.
PS: I only trade weekly options, the ES and Euro/USD.
Great work Eric, this study was the icing on the cake.
http://www.screencast.com/t/LN2V9bt5nXnH
My pleasure. Thank you Mike.
-Eric