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Attachments: Free from Prediction and Forcast Method (3LB)
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Free from Prediction and Forcast Method (3LB)

  • #21
  • Mar 11, 2007 11:14am Mar 11, 2007 11:14am
Attached Image


In the above picture, Blue candles are 3LB Blocks. Other candles don't play any role in our trading system.
Positive Thinking
  • #22
  • Mar 11, 2007 11:21am Mar 11, 2007 11:21am
Same as 3LB method there are 2LB, 4LB, 5LB ,...methods. the difference between them is in the criteria for validating reverse block. In 3LB method, the first reverse block is constructed when a candle closes before previous 3 blocks.
Positive Thinking
  • #23
  • Mar 11, 2007 11:33am Mar 11, 2007 11:33am
Quoting Fun Trader
Same as 3LB method there are 2LB, 4LB, 5LB ,...methods. the difference between them is in the criteria for validating reverse block. In 3LB method, the first reverse block is constructed when a candle closes before previous 3 blocks.
Attached Image


The red candle is a reverse 3LB block, cause it has been closed below white line.
Positive Thinking
  • #24
  • Mar 11, 2007 12:24pm Mar 11, 2007 12:24pm
what does the white line signify? how do you determine the white line.
Same Whore .... Different Dress
  • #25
  • Mar 11, 2007 12:33pm Mar 11, 2007 12:33pm
Quoting johnedoe
what does the white line signify? how do you determine the white line.
The white line is the low point of the 3 previous bars. Thus when the RED bar closes below the previous three bars low (the white line), it begins a new "Three Line Break". I repeated myself, I hope it makes sense. I am looking forward to more analysis from FT.

The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #26
  • Mar 11, 2007 12:34pm Mar 11, 2007 12:34pm
Some info I found on Three-Line Breaks:

Quote
Calculation
Line Break charts are always based on closing prices.
The general rules for calculating a Line Break chart are:

  2. If the price exceeds the previous line's high price, a new white line is drawn.
  3. If the price falls below the previous line's low price, a new black line is drawn.
  4. If the price does not rise above nor fall below the previous line, nothing is drawn.

In a Three Line Break chart, if rallies are strong enough to display three consecutive lines of the same color, then prices must reverse by the extreme price of the last three lines in order to create a new line:

  2. If a rally is powerful enough to form three consecutive white lines, then prices must fall below the lowest point of the last three white lines before a new black line is drawn.
  3. If a sell-off is powerful enough to form three consecutive black lines, then prices must rise above the highest point of the last three black lines before a new white line is drawn.


(Source: http://www.marketscreen.com/help/Ato...ideHF=&Num=101)
  • #27
  • Mar 11, 2007 3:08pm Mar 11, 2007 3:08pm
This seems like it should be interesting
Nothing is hard, some things just take more time and discipline.
  • #28
  • Mar 11, 2007 3:38pm Mar 11, 2007 3:38pm

Line Break charts are always based on closing prices.
The general rules for calculating a Line Break chart are:

  1. If the current closing price exceeds the previous line's closed price, a new white line is drawn.
  2. If the current closing price falls below the previous line's closed price, a new black line is drawn.
  3. If the current closing price does not rise above nor fall below the previous line, nothing is drawn.

In a Three Line Break chart, if rallies are strong enough to display three consecutive lines of the same color, then prices must reverse by the extreme price of the last three lines in order to create a new line:

  1. If a rally is powerful enough to form three consecutive white lines, then prices must fall below the open point of the last three white lines before a new black line is drawn.
  2. If a sell-off is powerful enough to form three consecutive black lines, then prices must rise above the open point of the last three black lines before a new white line is drawn.

Positive Thinking
  • #29
  • Mar 11, 2007 3:52pm Mar 11, 2007 3:52pm
These are last 13 closing prices of GBPUSD H1: (based on FiboGroup prices)

1.9285
1.9301
1.9308
1.9314
1.9319
1.9302
1.9309
1.9318
1.9315
1.9326
1.9329
1.9314
1.9320

Please draw 3LB Chart using Excel.
Positive Thinking
  • #30
  • Mar 11, 2007 4:04pm Mar 11, 2007 4:04pm
Quoting Fun Trader
These are last 13 closing prices of GBPUSD H1: (based on FiboGroup prices)

1.9285
1.9301
1.9308
1.9314
1.9319
1.9302
1.9309
1.9318
1.9315
1.9326
1.9329
1.9314
1.9320

Please draw 3LB Chart using Excel.
Is the next line white if the close passes the most recent close, or if it passes the last white line's close?
Nothing is hard, some things just take more time and discipline.
  • #31
  • Mar 11, 2007 4:04pm Mar 11, 2007 4:04pm
Quoting howard
Patience guys, that is what we need in trading
Thank you howard
I think each trading strategy needs it's own phsychology. Traders who select to trade using TLB Method should be patient. I will talk in this about later.
Positive Thinking
  • #32
  • Mar 11, 2007 4:07pm Mar 11, 2007 4:07pm
Quoting NipthePips
Is the next line white if the close passes the most recent close, or if it passes the last white line's close?
The next line is white if the close passes the last white line's close.
Positive Thinking
  • #33
  • Mar 11, 2007 4:16pm Mar 11, 2007 4:16pm
Quoting Fun Trader
The next line is white if the close passes the last white line's close.

Oh ok, well I think i know which lines are black and which are white, but I am lost on how to draw a 3lb chart on excel.
Nothing is hard, some things just take more time and discipline.
  • #34
  • Mar 11, 2007 4:44pm Mar 11, 2007 4:44pm
Quoting Fun Trader
These are last 13 closing prices of GBPUSD H1: (based on FiboGroup prices)

1.9285
1.9301
1.9308
1.9314
1.9319
1.9302
1.9309
1.9318
1.9315
1.9326
1.9329
1.9314
1.9320

Please draw 3LB Chart using Excel.
Attached Image
Positive Thinking
  • #35
  • Mar 11, 2007 4:56pm Mar 11, 2007 4:56pm
Up to now, I have tried to teach 3LB charting system and this is just an entry point to the method, I'm going to introduce here:
"Free from Predictions, Blieves and Forecasts"

Please do the same exercise for last 50 GBPUSD Daily candles. I want to be sure everybody has learned basics before going forward.
Positive Thinking
  • #36
  • Mar 11, 2007 4:58pm Mar 11, 2007 4:58pm
Quoting Fun Trader
Attachment

OHHH you meant like that


But one question, why wouldnt 1.9302 be the first black(red) line since it does go lower than the previous 3 white(green) lines?
Nothing is hard, some things just take more time and discipline.
  • #37
  • Edited 5:30pm Mar 11, 2007 5:05pm | Edited 5:30pm
Quoting NipthePips
OHHH you meant like that


But one question, why wouldnt 1.9302 be the first black(red) line since it does go lower than the previous 3 white(green) lines?
Drawing TLB chart needs for a beginning reference point which in my example was 1.9285.

-In the moment that the price is 1.9302 we have a rise so we should draw a positive block.

-One hour later, the price is 1.9308 and we have another rise so we should draw another positive block.

-One hour later, the price is 1.9314 and we have another rise so we should draw another positive block.

-One hour later, the price is 1.9319 and we have another rise so we should draw another positive block.

-One hour later, the price is 1.9302 and we don't have a rise according to last positive block(1.9319). Price is neither fallen below 1.9301 (open of previous 3rd block ) so we draw nothing.

-One hour later, the price is 1.9309 and we don't have a rise according to last positive block(1.9319). Price is neither fallen below 1.9301 (open of previous 3rd block ) so we draw nothing.

-One hour later, the price is 1.9318 and we don't have a rise according to last positive block(1.9319). Price is neither fallen below 1.9301 (open of previous 3rd block ) so we draw nothing.

-One hour later, the price is 1.9315 and we don't have a rise according to last positive block(1.9319). Price is neither fallen below 1.9301 (open of previous 3rd block ) so we draw nothing.

-One hour later, the price is 1.9326 and we have another rise so we should draw another positive block.

-One hour later, the price is 1.9329 and we have another rise so we should draw another positive block.

-One hour later, the price is 1.9313 and we have a fall below the open of previous 3rd block(1.9314) so we should draw a negative block.

-One hour later, the price is 1.9320 and we have neither a fall below the close of last negative candle nor a rise above (1.9329) so we draw nothing.

P.S.: Suppose the 12th candle close is 1.9313 nor 1.9314
Positive Thinking
  • #38
  • Mar 11, 2007 5:12pm Mar 11, 2007 5:12pm
Quoting Fun Trader
Drawing TLB chart needs for a beginning reference point which in my example was 1.9285.
In the moment that the price is 1.9302 we have a rise so we should draw a positive block.
One hour later, the price is 1.9308 and we have another rise so we should draw another positive block.
.....
.....
Well wouldnt 1.9314 be considered a rise from 1.9285?

BY THE WAY, the 1.9302 that i am referring to is the 6th close on the list..the one after 1.9319...not when the price rises from 1.9285
Nothing is hard, some things just take more time and discipline.
  • #39
  • Mar 11, 2007 5:22pm Mar 11, 2007 5:22pm
Quoting NipthePips
Well wouldnt 1.9314 be considered a rise from 1.9285?

BY THE WAY, the 1.9302 that i am referring to is the 6th close on the list..the one after 1.9319...not when the price rises from 1.9285
Oh dear Nipthepips
We have a misunderestanding about the order of the prices. If you refer to GBPUSD H1, these are the last 13 candle closes (before market open)
Positive Thinking
  • #40
  • Mar 11, 2007 5:24pm Mar 11, 2007 5:24pm
Please do the same exercise for the last 50 GBPUSD Daily candles ( I mean drawing 3LB chart using Excel )
Positive Thinking
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