Three Line Break (TLM) chart

A Three Line Break (TLB) chart is a Japanese charting technique that plots price action using a series of rising and falling lines (blocks) — a new line is added only when the closing price exceeds the high of the prior three lines (for a bullish reversal) or falls below the low of the prior three lines (for a bearish reversal). Like Renko and P&F charts, TLB charts are time-independent — they only update when a meaningful price move occurs, filtering out noise. The three-line reversal rule means the chart remains in the current trend until the price decisively reverses by breaking the range established over the prior three lines — making it harder for brief counter-trend moves to generate false reversal signals. TLB charts are excellent for identifying the primary trend and spotting genuine trend reversals with low noise. In Indian equity markets, Three Line Break charts are used by technically sophisticated traders analysing Nifty 50 and sectoral indices on longer time frames — the clear visual distinction between an established trend (multiple same-coloured lines) and a reversal provides an intuitive framework for position management without the distraction of intraday price oscillations.