Platform: NinjaTrader, TOS, Multicharts, Open Source various
Favorite Futures: FDAX, cable/yen, FX, options on commodities
Posts: 67 since Jun 2009
Thanks: 16 given,
I'm all about price.
I just had never thought of mixing Line break with Minute. It just might work! We'll see how it goes in a strat. What's the code again for adding Line Break to minute? I did it before but am on a new laptop here so don't have access while I'm away. What did you use? Post the Add period type code and I'll run it.
I think line break charts are the best charts to use for trading but, most people do not understand them because they are in a class of different charts. U have to understand that they do many things.
1. They lie to you about the price. You will never see in a closed block the true range of the price. The same is true on Renko and other charts of this type. I assume I can say this Sam Tennis wrote a simple bar that is attached to the block that shows the range of the block. So with this addition you can see the price range and you can see a fill on that bar that you will not see on the block. The main advantage to the line break is it like PF works on price movement. That is what the game is about. It also smooths the action of the price movement. There is no fixed setting for line break charts and 2. Another mistake is using just 3 1 as the input. They got there name because someone said they should be used as a trend indicator and after the third block that is the trend. BS. Properly set up they can be successfully traded from the first block and will produce the highest return. The theory is basic to Gann and the definition of a trend. There is no need for any indicators when using line break charts. Everything you need to know is right in front of you. 3. To get the highest return you must immediately enter the trade so that for shorts you are at the top and longs you are at the bottom. When you look at a line break chart you will learn how the market trades.
The move begins with a large bar and then smaller bars. The profit is in the first bar. Back testing is not accurate because the architecture of drawing the chart is flawed. First of all the blocks are based on the close. So there is no intra bar testing. TS for example creates a false bar until the bar closes. Until the bar is closed there is no accurate test. My friend wrote a book on the subject and got it wrong. There is almost no accurate information on line break charts that is correct and only by using them can you learn. Most of the time you will be saying why did it do that. It is worth the effort, all my trading has switched to the line break chart.
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