Line Break Charts

Line break charts (three-line break by default) draw a new vertical box only when price closes beyond the previous box, and reverse only when price closes beyond the extreme of the last N boxes, most commonly three. Up boxes and down boxes alternate in color, and a color flip is itself the classic reversal signal. Like Renko, it removes time from the picture and keeps only significant closes.

Using closing prices, a new box in the trend direction prints whenever the close exceeds the prior box's high (uptrend) or low (downtrend); a reversal box prints only when the close breaks the low or high of the last N boxes, where N is the number-of-lines setting. Boxes are event-driven, so the horizontal axis is not uniform in time.

Open the chart-type menu in the header (next to the interval buttons) and pick Line break — or pin it as a favourite for one-click switching.

• Confirming trend changes with a fixed, objective close-based rule
• Filtering minor pullbacks that would flip color on a candle chart
• Swing traders wanting a simple reversal signal without indicator parameters

Open Chart Settings (gear, or double-click the chart background) with this type active. Every setting, its possible values and what it changes:

See also: Kagi · Point & figure · Range bars · Session volume profile. Compare everything in the chart-type overview.