Skip to main content

3LPB chart and techiques

Three-Line Break charts (3LPB) display a series of vertical boxes that are based on changes in prices. The 3LPB method entirely dispenses with the recording of the volume sales and time data.The other major charting techniques like Point& Figure, Kagi and Renko Charts also ignore thepassage of time and volume. Three-Line Price Break charts are mainly used to confirm the underlying trend, trend-reversals and the balance of supply and demand. On many occasions “3LPB” charts show this ideal information developing while conventional charts (Bar, Candle) show nothing more than a temporary halt in a

trend. Two important points to consider while using 3LPB are the timing of the ‘reversal bar’ and

‘confirmation’ of the trend. A Reversal bar is generated when three successive bullish (WHITE) or

bearish (BLACK) bars are formed and today’s price is traded below the lowest of all prior three

WHITE bars (in case of bearish reversal) and vice-versa. The drawback for 3LPB charts is a trend-

reversal bar could be late, as substantial move might have already happened. But many traders are

willing to wait for the trend-confirmation as it involves a trade-off between risk and reward. Traders can also adjust the sensitivity of the 3LPB charts for 2, 5-Day Price Line break charts. Overall, 3LPB charts are very valuable tool in addition to the conventional charts to any technician’s arsena.



Comments

Popular posts from this blog

Biggest lesson that life has taught

LIFE  has taught me lessons too many to mention, therefore I will only list those that are imposed by the ill of society. Our aspirations that we foster as children are blown up to smithereens as we begin to age. From failure we learn humbleness and for success we learn that happiness was its sacrifice. The lessons we learn are not all reflective of our successes but deflective in our failure looking for that unseen fulfillment in which we elude ourselves in. Silence is wisdom & wisdom is power.  Ernest Psiachari, a French writer from the 1800’s expressed- Silence is a bit of heaven that comes down to earth. True words of wisdom. Slumbering ego awakened by the dim-witted.  To imply that every human being has an ego which is normally in slumber. But if the dim witted awakens my ego, I will wreak havoc. I will boast about my achievements, only when my ego is provoked. The secret of success stays secret.  To work harder than my competitors by not offering any inform...

Indian Revenue Service- Salary

   The  Indian Revenue Service  abbreviated as  IRS,  is the revenue service of the  Government of India.  It is one of the  Central Civil Services (Group A).  The Service functions under the  Department of Revenue  in the Union  Ministry of Finance  and is concerned with the collection and administration of the various  Direct and Indirect Taxes  accruing to the Union Government. IRS  comprises  two  branches -  IRS (Income Tax)  and  IRS (Customs and Central Excise),  which are controlled by two separate statutory bodies, viz.,  Central Board of Direct Taxes (CBDT)  and  Central Board of Excise and Customs (CBEC)  respectively. DUTIES & RESPONSIBILITIES : Taxation Revenue administration Enforcement Revenue intelligence ; etc. SALARY & GRADE PAY : While working with  IRS  you can also work with  IB, R&AW, CBI etc.  Those ...

Dont dream Big

Dreaming big is absolutely needed if you are ambitious and want to stay busy working on projects. If you want to spend your life chilled out - then the answer is no. So the first thing is to figure out what do you want out of life: busyness or relaxation. If you’re asking this question I am going to assume you are at least quasi-interested in pursuing an ambitious goal, so with that in mind, I’m going to answer the question -  how  is the best way to pursue a big goal. We hear a lot around ‘dreaming big’, but the crazy part is, rarely do people teach much past that attention grabbing headline. Big dreams - and big results - are lovely on glossy magazine covers, but the reality is far less glamorous. As such, here are the less glamorous parts to dreaming big. a) If you’re going to dream big and work hard, you’re going to have to link your work to a deep emotional driver. Dreaming big means a lot of small failures, and you are going to need additional motivation when things don’...