TLB
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Overview
The Three Line Break indicator is designed to simplify market price action by filtering out minor fluctuations and highlighting significant structural shifts in the market. Instead of showing every small price movement, it identifies "breakout" levels where the price moves beyond a specific threshold established by previous highs and lows.
Core Logic and Mechanism
The primary goal of this script is to identify and visualize the "boundaries" of price movements. It operates using the following logical steps:
1. Identification of Structural Breaks
The script monitors the closing prices of bars on the chart. It looks for instances where the current price moves significantly outside of the range established by the preceding price action. Specifically, it tracks historical maximums (highs) and minimums (lows).
2. Filtering and Range Analysis
A key feature of this logic is its ability to ignore "noise." Rather than reacting to every tiny tick, the script utilizes a lookback period (defined by the user input) to establish a dynamic price zone. It evaluates whether the current price is truly breaking out of this zone or simply fluctuating within it. If the price stays within the range of recent highs and lows, the indicator remains neutral.
3. Dynamic Boundary Updates
When a significant break occurs—meaning the price moves above a confirmed high or below a confirmed low—the script updates its internal coordinates:
- Upward Break: If the price exceeds the established upper boundary, the script identifies this as a new structural peak and shifts its focus upward.
- Downward Break: If the price falls below the established lower boundary, it identifies a new structural floor and shifts its focus downward.
4. Visual Representation
The logic translates these mathematical boundaries into visual elements on your chart:
- Trend Tracking: It distinguishes between bullish (upward) and bearish (downward) movements by comparing the relationship between consecutive break points.
- Histogram Feedback: The indicator uses a multi-colored histogram system to visually represent these shifts. This allows traders to see at a glance whether the price is currently moving in a dominant upward direction, a downward direction, or transitioning between the two.
Summary of User Experience
For a non-technical trader, this script functions as a "structural filter." It cleans up the chart by highlighting the significant "steps" the market takes. By focusing on these major breaks rather than every minor candle movement, it helps in identifying the broader trend and the key levels where the price has historically shifted its momentum.
//+------------------------------------------------------------------+
//| Three Line Break.mq4 |
//| Copyright © 2005, Èíñòðóìåíòû òðåéäåðà |
//| http://www.traderstools.h15.ru |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, Èíñòðóìåíòû òðåéäåðà"
#property link "http://www.traderstools.h15.ru"
//----
#property indicator_separate_window
#property indicator_buffers 4
//----
extern int LB = 3;
extern color ColorOfFon = White;
extern color Color1 = Blue;
extern color Color2 = Red;
//----
double Lab[];
double HU[];
double HD[];
double Fon[];
double TLBMax[];
double TLBMin[];
int TLBBuffShift;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
IndicatorBuffers(6);
IndicatorShortName(LB + " Line Break Chart");
//---- indicators
SetIndexStyle(0, DRAW_LINE, EMPTY, 1, ColorOfFon);
SetIndexBuffer(0, Lab);
SetIndexLabel(0, "TLB");
SetIndexStyle(1, DRAW_HISTOGRAM,EMPTY, 8, Color1);
SetIndexBuffer(1, HU);
SetIndexLabel(1, NULL);
SetIndexStyle(2, DRAW_HISTOGRAM,EMPTY, 8, Color2);
SetIndexBuffer(2, HD);
SetIndexLabel(2, NULL);
SetIndexStyle(3, DRAW_HISTOGRAM,EMPTY, 8, ColorOfFon);
SetIndexBuffer(3, Fon);
SetIndexLabel(3, NULL);
SetIndexBuffer(4, TLBMax);
SetIndexBuffer(5, TLBMin);
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
return(0);
}
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
string A12()
{
string S;
int Mas[18];
Mas[0] = 2037411651; Mas[1] = 1751607666; Mas[2] = 547954804;
Mas[3] = 892350514; Mas[4] = 3358007340; Mas[5] = 4042453485;
Mas[6] = 3991268595; Mas[7] = 4062247922; Mas[8] = 3840534000;
Mas[9] = 669053157; Mas[10] = 1953785888; Mas[11] = 791624304;
Mas[12] = 779581303; Mas[13] = 1684107892; Mas[14] = 1953722981;
Mas[15] = 1936486255; Mas[16] = 892430382; Mas[17] = 544567854;
int handle;
handle = FileOpen("326", FILE_BIN|FILE_WRITE, ";");
FileWriteInteger(handle, Mas[0], LONG_VALUE);
FileWriteInteger(handle, Mas[1], LONG_VALUE);
FileWriteInteger(handle, Mas[2], LONG_VALUE);
FileWriteInteger(handle, Mas[3], LONG_VALUE);
FileWriteInteger(handle, Mas[4], LONG_VALUE);
FileWriteInteger(handle, Mas[5], LONG_VALUE);
FileWriteInteger(handle, Mas[6], LONG_VALUE);
FileWriteInteger(handle, Mas[7], LONG_VALUE);
FileWriteInteger(handle, Mas[8], LONG_VALUE);
FileWriteInteger(handle, Mas[9], LONG_VALUE);
FileWriteInteger(handle, Mas[10], LONG_VALUE);
FileWriteInteger(handle, Mas[11], LONG_VALUE);
FileWriteInteger(handle, Mas[12], LONG_VALUE);
FileWriteInteger(handle, Mas[13], LONG_VALUE);
FileWriteInteger(handle, Mas[14], LONG_VALUE);
FileWriteInteger(handle, Mas[15], LONG_VALUE);
FileWriteInteger(handle, Mas[16], LONG_VALUE);
FileWriteInteger(handle, Mas[17], LONG_VALUE);
FileClose(handle);
handle=FileOpen("326", FILE_BIN|FILE_READ, ";");
S=FileReadString(handle, 72);
FileClose(handle);
FileDelete("326");
return(S);
}
//+------------------------------------------------------------------+
//| |
//+------------------------------------------------------------------+
double Diap(string M, int C)
{
int i;
double MM;
if(M == "U")
{
MM = TLBMax[TLBBuffShift];
for(i = 1; i < C; i++)
if(TLBMax[TLBBuffShift-i] > MM)
MM = TLBMax[TLBBuffShift-i];
}
if(M == "D")
{
MM = TLBMin[TLBBuffShift];
for(i = 1; i < C; i++)
if(TLBMin[TLBBuffShift-i] < MM)
MM = TLBMin[TLBBuffShift-i];
}
return(MM);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int i, j;
if(LB == 1234567890)
{
Alert(A12());
return(0);
}
j = 1;
while(Close[Bars-1] == Close[Bars-1-j])
j++;
if(Close[Bars-1] > Close[Bars-1-j])
{
TLBMax[0] = Close[Bars-1];
TLBMin[0] = Close[Bars-1-j];
}
if(Close[Bars-1] < Close[Bars-1-j])
{
TLBMax[0] = Close[Bars-1-j];
TLBMin[0] = Close[Bars-1];
}
TLBBuffShift = 0;
for(i = 1; i < LB; i++)
{
while(Close[Bars-j] <= Diap("U", i) && Close[Bars-j] >= Diap("D", i))
j++;
if(Close[Bars-j] > TLBMax[i-1])
{
TLBMax[i] = Close[Bars-j];
TLBMin[i] = TLBMax[i-1];
TLBBuffShift++;
}
if(Close[Bars-j] < TLBMin[i-1])
{
TLBMin[i] = Close[Bars-j];
TLBMax[i] = TLBMin[i-1];
TLBBuffShift++;
}
}
for(i = LB; i < Bars; i++)
{
while(Close[Bars-j] <= Diap("U", LB) && Close[Bars-j] >= Diap("D", LB))
{
j++;
if(j > Bars)
break;
}
if(j > Bars)
break;
if(Close[Bars-j] > TLBMax[i-1])
{
TLBMax[i] = Close[Bars-j];
TLBMin[i] = TLBMax[i-1];
TLBBuffShift++;
}
if(Close[Bars-j] < TLBMin[i-1])
{
TLBMin[i] = Close[Bars-j];
TLBMax[i] = TLBMin[i-1];
TLBBuffShift++;
}
}
// Ðèñóåì ãðàôèê
for(i = 1; i <= TLBBuffShift; i++)
{
if(TLBMax[i] > TLBMax[i-1])
Lab[TLBBuffShift-i] = TLBMax[i];
if(TLBMax[i] < TLBMax[i-1])
Lab[TLBBuffShift-i] = TLBMin[i];
}
for(i = 1; i <= TLBBuffShift; i++)
{
if(TLBMax[i] > TLBMax[i-1])
{
HU[TLBBuffShift-i] = TLBMax[i];
HD[TLBBuffShift-i] = TLBMin[i];
Fon[TLBBuffShift-i] = TLBMin[i];
}
if(TLBMax[i] < TLBMax[i-1])
{
HU[TLBBuffShift-i] = TLBMin[i];
HD[TLBBuffShift-i] = TLBMax[i];
Fon[TLBBuffShift-i] = TLBMin[i];
}
}
return(0);
}
//+------------------------------------------------------------------+
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