How to Trade Three Line Break Charts Profitably

Three Line Break Charts are a type of charting system that originated in Japan.

They are particularly useful for identifying the current trend and also trend reversals.

A clue to understanding these charts is in the name, they are a type of breakout chart.

They are distinctive because they only show significant price moves.

Significant price moves occur when the closing price is higher or lower than the preceding bars.

Three line break charts are based solely on the closing price and do not display any intraday movements.

This is based on the idea that the closing price is the most important price of the day. In this system each bar is referred to as a line.