Range Bar Charts

Range Bar Charts

Range bar charts are based on changes in price and allow traders to analyze market volatility. For example, a 10-tick range bar chart will print one bar each time there are 10 ticks of price movement. So, if a new bar opens at 585.0 in this example, that bar will stay active until price either reaches 586.0 (10 ticks up) or 584.0 (ten ticks down). Once ten ticks of price movement have occurred, that bar will close and a new bar will open. By default, each bar closes at either the high or the low of the bar as soon as the specified price movement is reached.

Fig 3: Range Bar Chart

A benefit to using range bar charts is that fewer bars will print during periods of consolidation, reducing market noise encountered with other types of charting. These bars deliver the same price information as time-based intervals, often allowing traders to pinpoint entries with greater precision.

 

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Range Bars [ here ]

 

 

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