Price Break Charts

ICE Data Services -

Price Break Charts are often found under different names, Three Line Break, Three Point Break so on. The way they work is by basically measuring the strength of a rally or sell off compared to previous bars. Here are some things to remember when reviewing data from a Price Break chart.

If the price makes a new high compared to the high of the previous bar, then a new bar (Green in this case) is constructed. If the price makes a new low compared to the low of the previous bar then a new bar is made (Red in this case). 

The caveat of Price Break charts is when three consecutive colors are made. If the chart builds three green bars, then the price must reverse below the low extreme of the series before a red bar is constructed. The same is true for the downside. If the chart builds three red bars, then the price must be able to surpass the high extreme of the series before a new green bar is built.

The (3) in Three Line Break refers to the reversal amount that a series must complete to be considered a true reversal.
Opening a Price Break Chart
To open a Price Break Chart select New from the menu bar and then select Chart.
This will open a New Chart window, to change the chart type right click on the Chart window and select Edit Chart.  Inside the Edit Chart window select Price Break from the Chart Type drop down menu. 
Price Break Properties
To access the Price Break properties, right click on the Chart window and select Edit Chart.  Here you can change the Source, Point Break Amount, as well as change the Colors for the Price Break bars.
Source:  Choose Open, High, Low, Close, HL/2, HLC/3, OHLC/4
Point Break Amount: Adjust the point break value
Projection: When this options is enabled a projection will be drawn with real time data to show where the next Price Break bar will be drawn.
Last Value: Displays the Last Price in the Chart Window