Line break charts OR price break charts are a special form of charts which reflects the sentiment better than a normal candlestick chart. A three line break chart is a specific chart where a reversal box is formed only after the price breaks the high or low of last 3 previous boxes. Three line break chart is the most common among all line break charts but some analysts also use six line break charts in lower time frame like 1 minute to catch the sudden moves during news like budget day or inventory flash etc.
Line break charts are sentiment indicators of the same family line Renko, point and figure etc and they shows charts with minimized noise as compared to a regular candlestick chart.
There are scarcity of good amibroker afls for sentiment indicators like Renko, Line break etc. But after much research we have found a good amibroker formula for the three line break chart. You may download it from below. Please also check the image for how the indicator will lokk like:
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.