Line Break Chart

A Line Break Chart (also known as a Three-Line Break Chart) is a Japanese charting method that plots a series of rising or falling lines (blocks) based solely on price movements relative to the most recent lines, ignoring time. A new rising line is added only if the price closes above the highest point of the previous lines; a new falling line is added only if the price closes below the lowest point. A trend reversal is signalled only when the price closes above the top of the last three bearish lines (a white or bullish reversal) or below the bottom of the last three bullish lines (a black or bearish reversal). This structure makes Line Break Charts very effective at filtering noise and identifying clean, sustained trend changes — popular among Japanese technical analysts and increasingly used globally.