OPEN-SOURCE SCRIPT
Line Break Strategy
Line Break Strategy
Entry rule:
Long on a bullish line and short on a bearish line.
Backtest:
Profit factors are shown below for three-line break.
Daily time frame, [.]FXCM broker.
[.]EURUSD: 1.267, [.]USDJPY: 1.039, [.]GBPUSD: -0.816, [.]AUDUSD: -0.959
[.]S&P500: -0.783, [.]Nikkei225: 1.099
[.]CrudeOil: 1.03, [.]Gold: 1.196
[.]BTCUSD: -0.883
Reference:
Steve Nison, Beyond Candlesticks - New Japanese Charting Techniques Revealed
Note:
This strategy doesn't work properly on the linebreak chart.
A good example is shown below. The entry prices are not always correct.
If you have signal, but the next candle moves in the opposite direction, the entry price is drawn at the Open of the new candle instead of the Close of the previous candle.
The results of backtest are unreliable due to this reason.
Entry rule:
Long on a bullish line and short on a bearish line.
Backtest:
Profit factors are shown below for three-line break.
Daily time frame, [.]FXCM broker.
[.]EURUSD: 1.267, [.]USDJPY: 1.039, [.]GBPUSD: -0.816, [.]AUDUSD: -0.959
[.]S&P500: -0.783, [.]Nikkei225: 1.099
[.]CrudeOil: 1.03, [.]Gold: 1.196
[.]BTCUSD: -0.883
Reference:
Steve Nison, Beyond Candlesticks - New Japanese Charting Techniques Revealed
Note:
This strategy doesn't work properly on the linebreak chart.
A good example is shown below. The entry prices are not always correct.
If you have signal, but the next candle moves in the opposite direction, the entry price is drawn at the Open of the new candle instead of the Close of the previous candle.
The results of backtest are unreliable due to this reason.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.