Reversal signal ThreeLineBreak

Thank you Nicolas. Its nice to be able to have the indicator and price on a single chart, previously it was only one or the other. I tried a version of this last year (in fact I think you helped with something similar for me) but it didn’t quite work as I wanted it to and I put it to the side on my todo list :-). The code posted above however looks more promising. I trade the 3 line break manually and can confirm it does have some success (especially on equities) but obviously there is limited testing as currently I could only test forward. Now that we have an automated code for it will be interesting to see if it the indicator works with history once we can incorporate into a strategy. Also, for info, I found that depending on the market and timeframe a 4/5 line break sometimes works better in providing more accurate signals which I presume is fairly easy to amend the above code for this. Will post here if I find some promising results in my testing. Thanks again.

An update – To start off with, I’ve actually used the indicator created by Francesco here on the Dax 30m – https://www.prorealcode.com/prorealtime-trading-strategies/cac-40-strategy-reversal-signal-threelinebreak-indicator/ (Sorry couldn’t add a link as it jumps me to the bottom of the page every time I click on “insert link” ) – Thank you Francesco ! I added an 25/55 ema filter and then ran a backtest. Results are pretty good with a 79% WFE ratio and 8% draw and profits split equally between long and shorts (which I like). I plan on working on it a bit more to create a higher win rate. Also aim to test out the non-reverse version of the indicator (ie the normal way !). But so far, the work looks promising, I think I’ll need a bit of help in coding the next steps at some point so I’ll reach out to see if anyone can help on here. Thanks again Nicolas for coding this !
PS – I can’t post a screenshot of the results here as don’t have the permissions but maybe I should open a new thread once I have enough confidence that it can progress past an initial stage of scrutiny.

Hi – have come across a difference here in the calculation of the indicator. It’s meant to replicate the 3 Line Break price chart and I would say 90-95% of the time the code achieves that perfectly but there a few instances where it does not match. It’s slightly puzzling as presumably the background code in PRT that calculates and displays the 3 Line Break price chart should be the same as the one coded in this post – so they both should either be accurate 100% or not, not accurate some of the time which is why its strange. It could be of course that there is something slightly incorrect about the PRT chart itself and not the code.
As an example, if you draw up a PRT 3 Line break chart of the 1H DAX and then compare that with the signal generated by the code above for Mon 29 May :Indicator shows sell signal at 0700 – matches with PRT Indicator shows buy signal at 1000 – none in PRTIndicator shows sell signal at 1300 – none in PRTIndicators shows buy signal at 1500 – none in PRT
As I say – this only happens occasionally as most of the time the code calculates as it’s supposed to. Any ideas what could be causing the differences ? Thanks