3 Line price break charting

[stevecartwright]

All,
Anyone using this technique and are you being succesful
Steve

 

[jimmy1]

All,
Anyone using this technique and are you being succesful
Steve

i look at three line break with interest what do you look at it for futures?

 

[stevecartwright]

Only considering equities, FTSE & Dow at present. There isn't much published information on the NET and I was hoping others would confirm their success. They certainly look good although I haven't thoroughly backtested yet which I hope to do soon. They could be good for intraday as well.
Do you use them just for direction or have you tried them as entry signals. I have been experimenting with 2 day breaks which of course are much quicker.

 

[jimmy1]

hi steve,
i use 3 line break for intraday on the dax a freind of mine uses it on stir' futures, although i have it on tradestation i do not have it as a strategy so i cannot give you any back tested results but to the eye and through manual check backs it is visually apprealing let me know how you get on, i use it as 3 line then enter a trade in the direction and then have a set profit...
steve nison wrote about 3 line break also know as point break

 

[ardhill]

Is there a simple answer of explaining to me what the 3 line break technique is?

Thanks

 

[stevecartwright]

Have a look at this: www.sixer.com/3lpb.pdf
It may help. You can search on "three line break" etc etc but don't expect to find much
Regards
Steve

 

[stevecartwright]

Jimmy1
I am getting conflicting results with me charting supplier "Sharescope" (they know they have a problem) but do you only take a reverse when the price is > or < than the last 2 or 3 high's/lows depending on how many days you are using. They seem to accept if the price is equal which doesn't strike me as being correct. I am thinking of buyine Nison's book is it any good.
Regards
Steve

 

[barjon]

Are you talking about drawing the lines or trading.

For drawing the lines - a new white line is added if the previous high (close) is exceeded.
When consecutive white lines are drawn it is the low of the third one back that needs to be broken to draw in the first downward black line.

 

[ardhill]

Thanks for that Steve

You can search on "three line break" etc etc but don't expect to find much

Yeh, I did try but could only find a site trying to sell an e-book on 3 line break trading.

 

[stevecartwright]

Thanks barjon, thats what I thought, but was looking for conformation. Do you know if there is any better reliability by using the highs and lows as opposed to the close which I am using at present. Its an easy switch.

 

[jimmy1]

i wait until three bars the same colour print, then go long or short, you are then supposed to ride it until 3 reversing bars in a row appear then close out and open in the other direction.I do not use it like this i use 3 lines to get in then once i am in profit i have a stop half a tick after my enrty level then move it accordingly, or i use a 1 tick stop, i work of very very small timescales maybe in and out in 5 seconds very macro, hope this helps if you want i can email you an example chart some reason i cannot paste it on here! me and technology

 

[ardhill]

me and technology

I hope you don't trade the Nasdaq then :cheesy:

 

[stevecartwright]

i wait until three bars the same colour print, then go long or short, you are then supposed to ride it until 3 reversing bars in a row appear then close out and open in the other direction.I do not use it like this i use 3 lines to get in then once i am in profit i have a stop half a tick after my enrty level then move it accordingly, or i use a 1 tick stop, i work of very very small timescales maybe in and out in 5 seconds very macro, hope this helps if you want i can email you an example chart some reason i cannot paste it on here! me and technology

I am looking to use this on daily charts or 10 mins on the Dow. Doesn't the wait for 3 bars of the same colour mean you lose a lot of the move or is this handled by the short timescale

 

[jimmy1]

I am looking to use this on daily charts or 10 mins on the Dow. Doesn't the wait for 3 bars of the same colour mean you lose a lot of the move or is this handled by the short timescale

it does mean you loose alot of the move but i look at like this
picking the high/top and the low/bottom is like being a magician... i cannot do that i get burned too much
if the sweeps are 10 ticks and i can grab 3 of those 10 ticks with good probablilty im happy, watch the wave come and form them get on it ride it for a bit and get out before it breaks......

 

[stevecartwright]

I wll probably have more time in the new year to spend trading. At the moment I have a full time job. How and what are you trading to make a profit on just 3 ticks? Strikes me that with spread betting you need 6 to 8 points just to get in and out without loss. My startegy at the moment is PUT writing for the premium. I don't have to watch the screen to closely for this and it fits in with work.

 

[JonnyT]

Yes absolutely no chance of being profitable.

JonnyT

 

[SKG68]

3 Line Break

Hello

I Am Using Also 3line Break A Lot In All Markets


I Am Wondering If Anyone Knows Any Possible Expoler System Concerning Metastock That Can Print The 3 Line Breaks Prices So Not To Go Over And Over All The Stocks

Thanx


Any Questions About 3 Line Breaks Available

 

[SKG68]

i wait until three bars the same colour print, then go long or short, you are then supposed to ride it until 3 reversing bars in a row appear then close out and open in the other direction.I do not use it like this i use 3 lines to get in then once i am in profit i have a stop half a tick after my enrty level then move it accordingly, or i use a 1 tick stop, i work of very very small timescales maybe in and out in 5 seconds very macro, hope this helps if you want i can email you an example chart some reason i cannot paste it on here! me and technology

CHECK MY QUESTION

THANX

SKG68

 

[stevecartwright]

CHECK MY QUESTION

THANX

SKG68

It's not what you want to hear but I use Supercharts and generate the data from an MSACCESS database which I load daily prices for UK and USA stocks into. Its not going to help you unless you have the same technology, Sorry :-(
Steve
PS By the way I use 2 days and look for single candles which immediately reverse. I don't do a lot on this as I am trying to make some money on FX without much success.

 

[SKG68]

Thanx Anyway
Find The 5 And 10 Line Breaks And Just Write It Down---one Day U Gonna Remeber That Prices-----use Them As Targets


Thanx Again