Introduction to the Three Line Break Indicator
The Three Line Break Indicator (TLB) is a forex trading tool that represents a raw of the vertical rectangle, the height of which is determined by the value of price changes. These charts – like Kagi, P&F, Renko – do not consider the time factor. This graphical method is named after the number of lines usually used to register a break.
The Three Line Break Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
If you wonder how to trade using the TBL indicator, simply follow the suggestions below.
Buy Entry: Open long trade after three consecutive red lines, plus a blue line appears (“the blue reversal line”).
Sell Entry: Open short trade after three consecutive blue lines, plus a red line appears (“the red reversal line”).
Do not trade when there is no stable trend, i.e. when blue and red lines alternate.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
How to set up the Three Line Break indicator in MetaTrader (MT4)?
Download the Three Line Break.rar archive at the bottom of this post, unpack it, then copy and paste the Three Line Break.ex4 or Three Line Break.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Three Line Break indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.
Download Free Forex MT4 Three Line Break Indicator
To download the Three Line Break Indicator for Metatrader 4 (MT4) for free just click the button below: