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hi everybody. i have recently started to experiment with point original bars, as posted by richard todd on movethemarkets.com. for those of you who never heard of them, the range count starts at the open of the bar, and closes only when distance from open (not H or L) is reached. they look to me like a happy medium between range bars and renko. i have been using them on gold, results are encouraging, and i'm beginning to spot some patterns. has anybody ever traded with them? any insight would be greatly appreciated.
volume works best with minute & tick, doesn't work well with range, and doesn't work at all with renko
cycles work best with renko, work ok with range, and don't work as well with tick & minute
breakouts work on all of these but are easiest to see with range charts
Since most indicators are based on price only, if you add a time element that can distort it. I trade range bars without any indicators, and I think if one trades without indicators it doesn't matter what bar type you use and you can move from one to another.
This little exercise was very revealing for me, because I found a 4th category. Here's what I use:
- Sharkfin: I use it with period of 2 which simply colors reversal bars grey (I use it on range & renko charts). I could spot the reversal bars myself …
I said I trade range bars without indicators. I did not say that I don't use any indicators.
For CL I use range bars naked.
For ES I use a cycle indicator (better sine wave but PSO would work as well) plus some volume indicators plus a volume momentum indicator. I have removed 20 EMA & the particle oscillator as they did not help me.
To be 100% honest - I'm not convinced it's worth having on my chart!
The problem is that when it works it looks awesome. But when it shows divergence and price just continues on, it is very frustrating. Way too many false alarms. That's why I'm seriously considering removing it. I do not like anything that makes me second guess. This is why I try to trade with a minimum of timeframes and indicators.
I'm working on an NT port, hope to have something in January when I have more time.
I use 2-range bars for scalping pullbacks... they are a big help to me in seeing patterns on small time frames such as the repeating moves and retests that would just look like a single wide range bar on a time-based chart. And they can help make it more clear what is going on in tightly ranging areas.
I find that VolumeStop v4 works great in combination with range bars.
