VR Break Charts
Three Line break chart is a type of chart used in technical analysis of stock and currency markets.
The advantage of this indicator is that it does not take time into account in its readings, only price changes are taken into account. Classic methods of technical analysis are applied to the chart of a three-Line breakout: building trend lines, support and resistance. The indicator was written to determine the direction of price movement. It is important to note! The three Line Break chart indicator does not take time into account! Indicator candles show the trader only real price movements, filtering out the flat. The indicator is not interchangeable when searching for global trends in financial instruments!
Algorithm of operation
The chart uses data from the minimum, maximum, and close of the last period. The blue band indicates growth, the red band indicates a fall in price
The closing price of the previous period is compared with the high and low of the previous period.
- If the current closing price is higher than the high of the previous period, then a white bar is drawn up from the level of the previous high to the current high.
- If the current closing price is lower than the minimum of the previous period, then a black bar is drawn down from the level of the previous minimum to the current minimum.
- If three white bars are formed on the chart in a row, then the current closing price must fall below the minimum of the first blue bar in order to build a red bar. In this case, the red bar is drawn from the minimum level of the last blue bar to the current minimum. The appearance of a red stripe after three blue ones is used as a simple trading signal to sell.
- Each new lane is indented to the right.
The indicator does not trade automatically, so the yield depends on the knowledge and skills of the trader.
Use the indicator in conjunction with your trading strategy
- Bars Number of bars to analyze
- UP_Bar color of bars for growth
- DW_Bar color of bars to drop
Version 17.050 - 11.05.2017
Improved display of lines.
Minor fixes in the code.
To hide the update history
What's in the archive
The archive contains a file:
VR Break Charts.ex4 for Metatrader 44
Reviews and discussions