ES broke short today

Discussion in 'Index Futures' started by Chris C, Aug 5, 2003.

  1. Chris C

    Chris C

    On a 3-Line Break chart, the ES broke short with today's close below 972. I hope you find this chart useful!
     
  2. It broke short alright, like this:
    (picture of the emini contract)

    [​IMG]
     
  3. What is the 3-line chart? Could you elaborate on it, please?

    TIA.
     
  4. Chris C

    Chris C

    The 3-Line Break is a Japanese Candlestick method that identifies a trend by solid blocks of lines, and lets the market decide where the reversals occur. A 3-Line Break chart only displays new lines if the close of the period moves outside of the period of the previous block of trading. So, if price exceeds the prior high or low, a new line is drawn. If the current price is within the prior high or low, then a new line is not drawn. The term “3-Line Break” comes from the fact that the market has to break below the prior 3 high lines or above the previous 3 low lines for a new opposite colored line to be drawn and to indicate a trend reversal.

    The beauty of the method is it doesn't encourage the formation of opinions, which can be a great boost to confidence and discipline.
     
  5. Any other sources? Books, web links that you are familar with?

    Thanks for your reply.
     
  6. No magic there - it broke short on just about EVERY kind of chart.

    Although it also looks like the So9 chart still has a level coming up @ about 960 and the 100 DEMA is at about 953. So outcome may still be open.
     

  7. good call!

    Where did that graph come from?