I have been trading durin the last ten years. Since then I I used bar charts in my trading. Three years ago I did a webinar and I discovered the range bars. At the beggining I followed the setups I learned in the webinar, but afterwards I discoveres my own setups and I have to say that toady my whole trading activity is based in three setups that I call FTR, RTR and FF Reversal.
The following user says Thank You to lapuente2002 for this post:
I like using Range bars! I discovered them about a year and a half ago and I think the most interesting part is that they are ‘removing’ time from charts. This may allow someone to spot support and resistance more easily because there may be a greater number of candles around support/resistance than time-based candles show.
Do you find that indicators are the same, more or less helpful on range bars than time-based bars?
Thanks for the post lapuente2002!
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What is the first indicator that you apply to your chart?
It's your bar type.
Think about it.
It's the first level of filtering from the raw tick data that you apply. Every chart type imposes a bias.
Sure the brain can begin telling a story about the charts bars however is it time for a different way of observing the markets?
Now some bar types..
Renko, Range: fixed in the a total # of set up/down ticks per bar
Time bars: fixed in a new bar per a unit of time, can be as big as they want (remember the May Flash Crash in 2010?)
Volume, tick bars, newer & kinda like time bars except the number of contracts traded is the determining factor.
So my funny point is if one is heavy in one area but say light on volume, perhaps volume bars might be a good way to balance things out.
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