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Jun
18

Range Bar Charts vs Time Bar Charts – How they work.

Posted by kurtosisT

TradeStation Definition and Explaination:

“Range Bars were developed in 1995 by a Brazilian broker and trader, Vicente M. Nicolellis, Jr. The purpose of Range Bars was to focus only on changes in price; thus they do not close at a specific time, but instead only when the range is complete. Each bar has a specified price range, rather than being charted in units of time or ticks. ¬†With a focus on price movement, long periods of consolidation may be condensed into just a few bars, removing excess noise in the market and highlighting “real” price movements. So it is possible that an entire month of daily bars could fit into a single Range Bar, and the next month would have 30 Range Bars.

Range Bars are built by the underlying closing data that shows the directional trends as per the range amount. Range Bar charts are time independent so that time axis increments will not be fixed. The size of the bars will always be the range size set by you and will never be anything smaller or larger unless it is the current bar that is building.

Range Bars look like standard bars, but are different in four ways:

1. Range Bars are all equal in height, based on the Range High to Low.

2. The open of each Range Bar is always equal to the close of the previous Range Bar.

This is the primary difference between Range Bar and Momentum Bar charts.

3. Range Bar closes are always at the top or bottom of the bar.

4. Range Bars charts have no gaps.”

Hope This Helps and enjoy the video – click the above icon to play the Video. Please wait for it to load.

Stick to you stops KT

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    Welcome to Kurtosis Trading! Here at Kurtosis Trading we are Day Traders and Swing Traders this is a forum to provide information tips, trade setups and trade ideas on day trading and swing trading. We believe here at KT that information and education is the most important ingredient to the sucess of day traders. We are not a company of Financial Analysts publishing research and recommendations I will leave that for the IB and Brokerage Houses. All ideas are our own trading ideas and are intended for educational purposes but if you should profit from our ideas feel free to make a donation to help fund this site.

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