MT4 indicator (3LineBreak.mq4)
Download indicator: 3LineBreak.mq4
1. Switch your charts from Candlestick to Bar charts for a better view of the indicator.
How to trade with 3LineBreak.mq4 indicator
3Linebreak indicator was written based on the rules 3 line break method - 3 line break charts.
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.
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.
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.