Chart types
Line break charts
Lines (blocks) that extend the trend with every new closing high or low and reverse only when the last few lines are broken.
The idea in plain words
The classic three-line break adds a new line in the trend's direction whenever the close goes beyond the last line. The trend reverses only when the close breaks the extreme of the last three lines.
How it is calculated
Built from the closes of the timeframe on screen. Lines to break: 3 by default (⚙).
Up trend: new up line if close > last close; reversal if close < lowest of the last N lines
Down trend: mirror imageHow to use it
- Spotting trend reversals with fewer false signals than candles.
- A long run of same-coloured lines = strong trend.
Drawing conclusions
- Lines are not time based: a quiet week can add no line.
Example
US500 daily: eight green lines, then a close below the lowest of the last three lines draws the first red line.
Prices in examples are illustrative.
Watch out for
- Reversal signals come late by design.
A little history
A traditional Japanese charting method ("shinne ashi"), introduced to Western readers by Steve Nison.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.