RANGE CHARTS

December 23rd, 2009, 11:11 AM

I find range bars quite interesting.

I've been testing my ideas in Sim/Ninja, taking notes etc.

When they are 'on', they catch amazingly long trends.

At the same time, they seem susceptible to whip turns in trend and gaps that seem too fast for reaction.

I recently discovered blog of trader/mentor that seems to use them quite consistently.
Seems more of a scalper than big trend player, but obviously transparent and successful with this tool. For me its proof that range bars may offer great potential.

(Protrader Ed)

p.s.
I'm new to posting ideas here.
What an amazing informative blog community!
My compliments to BIG MIKE

December 28th, 2009, 11:56 AM

Range charts seems to be capable of 24 hour trading where minute chart will become quite flat during night time hours.

June 1st, 2010, 04:12 PM

None that I know of, just price action and price patterns

July 8th, 2010, 11:16 PM

Volume charts are constant $$$.

July 19th, 2010, 10:57 AM

I think you're right Lynx... but I'll carry it even further. ALL charts are just arbitrary ways to massage price into a heuristic package. Minute bars are just as meaningless as tick or range bars. The close of a range bar means nothing, just like a minute or tick bar.
The only possible exception is bars that have a huge majority of traders watching them... they may have a tendency to self-fulfilling value & daily bars, because they correspond to the open and close of a tangible market.
I think you just have to pick one and learn to trade it.

I wrote a thread here about what I think of the obsession with manipulating price is infinite ways.

October 8th, 2010, 05:19 AM

Dude!! A serious light bulb just exploded in my mind!! I loaded that chart into my "Big Picture" I always have going (I was using 15minute) and every trend was revealed.

Are my scalping days over!!!!!!????????

Big Mike

"Dress for the job you want, not the job you have."

Range charts may look good, but looks don't matter in trading.

A range chart cannot show you why the market moved. An EMA 20 on a range chart is nothing like an EMA 20 on a 5m chart.

Range charts are popular because they minimize risk, in theory, and too many people are afraid of risk and keep moving to smaller and smaller charts. In reality, you take more stops for "unknown" reasons (that you blame on indicators, if you have a bunch of them) than you would if you just traded a 5m chart with only an EMA 20 and nothing else.

Also, it's my belief that the big boy traders don't trade Range charts. Do you really think they are interested in "every 6 ticks, the new bar forms" type of chart? No. Why would they be.

Something that helped me realize Range charts is not where I wanted to be is that my fellow Range-bar traders were always trying to set ridiculously low stops, and their targets were also very small compared to what I wanted to do. It's because of the Range chart mentality.

There is no right and wrong way to trade. There is only the now. If you are making money with range charts then who cares what everyone else is doing.

For me, I make much, much more money with 5m and it also makes much, much more sense to me. "Never say never", but in all likelihood, I will never trade anything smaller than a 5m chart again. After having learned to properly read a 5m chart, it would just be a sin to myself to give it up.

Mike

October 9th, 2010, 10:36 PM

I once posted a question about range chart just to get other traders feeling, but when I red Big Mike reply about his use of the five minute chart I went and took another look at a time frame that I had given up on for years, an I must say Big Mike you are right, we traders tend to create to much problem for our self by chasing all the latest fad. Now I find my self back using the five minute time frame and having better resolt than using all the others, for me I will stick to my five minute time frame were I can see the big picture and don't have to worry about all the noise in those other time frame.

The best to all
Lalo

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RANGE CHARTS