Three Line Break Pass Node

Three Line Break Chart Direction — Series Input

AdvancedPrice ActionPass

Overview

The Three Line Break Pass Node applies the Three Line Break chart algorithm to a series input. A new line is only drawn when price exceeds the high or low of the prior lineCount lines — requiring a more significant move to reverse a trend than to continue it.

Three Line Break charts (introduced by Steve Nison in "Beyond Candlesticks") provide a more conservative reversal filter than Renko — a reversal requires breaking all N prior lines, making false reversals less common. As a Pass node, it operates on any numeric series for structured directional analysis.

Algorithm

Maintain ring buffer of last lineCount lines (each line has high, low, direction)

For each bar i:

if direction == +1:

if series[i] > currentHigh: add new white line, direction = +1

elif series[i] < min(low of last lineCount lines): add new black line, direction = −1

if direction == −1:

if series[i] < currentLow: add new black line, direction = −1

elif series[i] > max(high of last lineCount lines): add new white line, direction = +1

Output[i] = current direction

Output: +1 (white/up line) or −1 (black/down line). No warm-up — recursive from bar 0.

Parameters

Parameter	Default	Description
lineCount	3	Number of lines whose extreme must be broken to trigger a reversal (2–5 typical)

Inputs & Outputs

Slot	Direction	Type	Description
input	Input	{ values, timestamps }	Any numeric series (price, indicator, etc.)
values	Output	(number \| null)[]	Direction: +1 (white/up line) or −1 (black/down line)
timestamps	Output	number[]	Unix timestamps aligned to input

Use Cases

High-Conviction Trend Confirmation

Three Line Break requires price to break N consecutive prior lines before reversing — this makes reversals high-conviction events. Use direction flips as confirmation signals before entering counter-trend positions, significantly reducing whipsaws vs. simpler filters.

Indicator Direction Filter

Apply Three Line Break Pass to an oscillator (RSI, Stochastic) series to detect meaningful directional reversals — filtering out oscillations that would otherwise generate many false crossover signals without clear structural trend changes.

Entry Timing After Reversals

Monitor when a Three Line Break direction flip occurs and use it as an entry trigger — the flip means price has broken N prior lines, which often indicates an inflection point. Combine with volume confirmation for higher-probability entries.

Tips & Best Practices

lineCount 3 Is the Classic Default

The traditional Three Line Break uses lineCount=3 — a reversal requires breaking the extreme of the last 3 lines. Use lineCount=2 for more responsive (but noisier) signals; lineCount=4–5 for high-conviction signals at the cost of more delay.

Asymmetric Continuation vs. Reversal

Continuing the current direction requires only exceeding the most recent line's extreme; reversing requires exceeding all lineCount lines. This asymmetry makes Three Line Break naturally trend-following — continuation is easier than reversal.

Low Signal Frequency

Three Line Break direction flips are rare in strong trends — the output may hold the same value for many consecutive bars. Expect fewer signals than simpler filters (Kagi, Renko). Pair with a faster indicator for entry timing within the identified direction.