. . .more on Formulas 

See Also:  Three Line Break Charts
See Also:  Three Line Break Indicator

. . . more on Charts 

Above is a 3-minute Candlestick Chart of Intel (INTC).  The lower pane shows the TLB Oscillator drawn using the preference seen below.  The red dots represent the relative current price.  The green histogram represents the relative reversal price.  The dark and light gray squares represent the "lines".

. . . more on Preferences 

• Price - Price used to compute the TLB Oscillator.

• Reversal Criteria - Number of lines that must be broken in order to form a reversal.

• Relative Current Price - All values are drawn relative to a "base line" price.  This base line price is the price that is broken when a reversal is formed.  Using this relative method, the indicator can be drawn as an oscillator that crosses the zero line during reversals.  The relative current price is drawn as a dot on the chart, and is the price relative to the base line price (Current Price - Base Line Price).

• Relative Reversal Price - The relative reversal price is drawn as a histogram on the chart, and is the price relative to the base line price (Reversal Price - Base Line Price).  The relative reversal price can exist on the opposite side of the base line price from the current price (when the TLB reverses before three lines are formed) and very often coincides with the base line price.

• Odd Lines - This is the color that will be used to draw the odd lines (every other line).  Lines 1, 3, 5, etc...

• Even Lines - This is the color that will be used to draw the even lines (every other line).  Lines 2, 4, 6, etc...

• Custom Result - If this checkbox is checked, then the result of the indicator will be the value of the custom result selected in the selection box to the right.  The choices are described further below, and include State, Current - Reversal Price, Reversal Price, High of Line, Low of Line, Line Height (Hi - Lo), Direction (1 = Up, -1 = Dn), Bars in Direction, and Extreme Price.

TLBOSC however shows much more than just reversals.  It shows the current price (a small dot), the relative reversal price (in histogram form), and the lines formed in either direction.  The most important aspect of the indicator at any time is the distance from the the current price to the reversal price (should we anticipate a reversal soon?).  Arrow markers are draw below the upward reversal bars and above the downward reversal bars.

In addition, the TLBOSC has a powerful "Custom Value" option that provides the flexibility to show any of the following TLB data elements.  These custom values can be charted individually, in line or histogram format.  These values can also be reference in the RTL language for scans, custom indicators, and trading signals.  The token is TLBOSC.  The resulting value of the TLBOSC token will simply be the corresponding Custom Value that is selected within the preferences.

The Three Line Break Oscillator can be referenced in RTL using the token: TLBO.  This token gives the user access to any of the custom results available in the TLB Oscillator, including State, Current - Reversal Price, Reversal Price, High of Line, Low of Line, Line Height (Hi - Lo), Direction (1 = Up, -1 = Dn), Bars in Direction, and Extreme Price.  To find an instrument that has just reversed up, the "Direction" result would be used (TLBO > TLBO.1).  To find an instrument that has formed at least 5 lines in the upward direction, the "Bars in Direction" result would be used (TLBO >= 5).  To find an instrument that may be nearing it's upward reversal, the "Current - Reversal Price" result would be used (TLBO > TLBO.1 AND TLBO/CL < 0.02).