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Hi Tom and all
Thank you so much for your offer of help. I really appreciate it!
In Metastock, the three-line break indicator is actually included under Format
>Prices>Color/Style>Price Style. If you chart a stock (say, AOL on a daily
close basis), you will see that it shows uptrends and downtrends, with very few
price whipsaws.
The three-line break system was invented by the Japanese, and introduced to the
West by Steve Nison in his book *Beyond Candlesticks*. It is essentially a
moving channel breakout system, in which a "close" less than three closes back
causes a reversal of the prevailing trend; in the prevailing trend, you count
only new daily highs (in the case of an uptrend), or new daily lows. The only
tricky reversal price is #3 which uses the penultimate price of the previous
trend as a break/reversal price. Let me know if you need a more precise
details. Metastock also allows x-line break. I have found 13-line break to be
especially helpful in defining longterm futures trends. It is uncanny how
effective 3-line break charting works as a complete trading system unto
itself. I have been using it to trade Nasdaq stocks and currency futures, and
can testify to its efficacy.
Best,
Matt
Tom Bowen wrote:
> Matt;
>
> I have the MetaStock SDK software and I believe Equis is wrong.
> I think this can be programmed and would be willing to try however I cannot
> locate this "three-line break" indicator in MetaStock 7.01.
> Can you tell me how to obtain this indicator?
> Of course I would be willing to share my code when I'm done.
> Thanks.
>
> ----- Original Message -----
> From: "Matthew R. Kratter" <mkratter@xxxxxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: Sunday, June 25, 2000 12:23 PM
> Subject: Re: System Tester and Three-line break
>
> > Thank you for your reply, Sonny.
> > That really is too bad if it is true!
> >
> > Sincerely,
> > Matt
> >
> > Sonnysark@xxxxxxx wrote:
> >
> > > In a message dated 6/24/00 12:44:41 PM Pacific Daylight Time,
> > > mkratter@xxxxxxxxxxxxx writes:
> > >
> > > << Dear List
> > >
> > > I am trying to figure out how to use the Metastock system tester to
> test
> > > trading
> > > using the three-line break indicator on a daily basis. What I would
> like to
> > > do
> > > is go long when the three-line break goes long, and vice versa on the
> short
> > > side. I am sure that there is a simple way of stating this in the
> Metastock
> > > programming language, but I can't seem to figure it out.
> > > Any hints would be much appreciated!
> > >
> > > Thanks in advance,
> > > Matt
> > > mkratter@xxxxxxxxxxxxx
> > >
> > >
> > >
> > >
> > > I was told by Equis that it can not be done. -Sonny-
> >
> >
> >
> >
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