• Technical Studies Reference
• Common Study Inputs (Opens a new page)
• Using Studies (Opens a new page)

A Three Line Break chart displays boxes using only the Last/Close prices of the underlying bars in the chart. Only the Last/Close prices are used. Not the High or Low. Although with the Input Data Input you can select another bar element instead, such as an Average Price.

If an underlying bar Last price exceeds the current bar box High price, a new Uptrend box is drawn. The opening price of the new box is the same as the previous box close price unless the Show Real Open Input is set to Yes.

If the Last price exceeds the current bar box Low price, a new Downtrend box is drawn. The opening price of the new box is the same as the previous box close price unless the Show Real Open Input is set to Yes.

Nothing happens if the Last price is within the current bar box High and Low price.

If there is a consecutive number of boxes in the same direction, Uptrend or Downtrend boxes, then the Last price must go below or go above the lowest price or highest price respectively, of the specified number of consecutive boxes for a new box to be drawn. The number of consecutive boxes is specified with the Consecutive Boxes to Break (n) Input. Otherwise, if the number of consecutive boxes is less than the specified number (Consecutive Boxes to Break (n) Input), the Last price only needs to go below or go above the lowest price or the highest price respectively, of only the current bar box to make a new box unless the Must Break Consecutive Boxes < n is set to Yes.

For example, if Consecutive Boxes to Break (n) is set to 3, and the last 3 boxes are all Downtrend boxes, then in order for a new Uptrend box to be drawn, the underlying bar Last trade price must be higher than all 3 Downtrend boxes.

The Three Line Break chart draws the final box as live data is received. The final live box could be either an up or down box, and is not determined until the box is complete. The final box is never removed, but the Open value of the box can change when the box is closed based on the Show Real Open Input.

This study can be applied to both Intraday and Historical daily charts. The period of the underlying bars can be any period. Although bars of a very short duration, such as under 10 seconds, would create the most accurate chart. You may want to use a longer time period per bar for different results.