DislikedHi Musashi,
I am curious on how you use range bars, and what are the advantages and disadvantages you have found in using range bars ?
Also for VSA, normally there is looking at narrow spread bars or wide spread bars.
In VSA terms, how would you look at this narrow spread and wide spreads when range bars only give you a constant width spread ?Ignored
2. Disadvantages of range bars : none that I'm aware of.
3. Narrow range bars on time based charts represent a price consolidation period based on "time"
4. Each bar in a range bar chart is a consolidation period based on the size of the bar.
5. Volume of each range bar is different it seems, price can consolidate on a range bar chart for a very long time... in that time many orders can be processed. Since the bar must be go from "x" low to "y" high before the bar is closed.
6. Volume Spread Analysis is not something I am aware of, with respect to how price and volume correlate to mean Bullish or Bearish Volume.
Bullish Price action to mean is indicated by price going up, bearish price action to me is indicated by price going down.
What is happening to the volume of orders in that period is something I have yet to consider in the currency market.
I would expect higher volume transfers to occur on breaks of resistance and support, I understand about distribution and accumulation and this is evident on a range bar chart via a range or consolidation period, one bar up, one bar down, one bar up, one bar down, then a break in one direction.
Which is why I like the patterns that exist on range bar/price bar charts.
Time is of no relevance. Price is of major relevance. As far as volume being relevant on a range bar chart that is something I have not considered.
Obviously there is more than one way to look at what price is doing, using wide range bars on high volume and narrow range bars on high volume not too sure what this would imply.
To me there is consolidation and then there is trending, distribution or accumulation will be evident by the direction of the break of the consolidation.
Well that is my view of the markets.
Like I've said I'm reading the book Master the Markets and I'm interested by the concept of volume analysis. I will continue reading and try to understand the concept as best I can.
Cheers