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Constant range bars charts exposed (Price Movement/Volatility Charts)

  • #1
  • First Post: Feb 6, 2012 6:38pm Feb 6, 2012 6:38pm
CONSTANT RANGE BARS CHARTS. (Price Movement / Action - Volatility Charts)
Created in 1995, by a brazilian Trader, Vincent Nicolellis Jr., Constant Range Bars are also called "Momentum Bars". They are standard Charts with Bars that have Open/ Close/ High/ Low and Volume, but they focus on Price Movement, eliminating the Time Factor.

The Range Bars charts have 3 rules:

- Bars have the same Lenght / Height / High-Low Range in Pips, Ticks or Money ($),

- The Close of the Range Bar is always at the High or Low of the Bar,

- The Opening of the next Range Bar is always one pip / tick, above or under the High or Low of the current Bar.


For example, let's take a look at a 30 minutes chart on Eur/Usd and Compare it to a 10 Pips Constant Range Bars Chart:

http://www.dukascopy.com/imageserver...2/image872.jpg

http://www.dukascopy.com/imageserver...2/image960.jpg

- You can clearly see that we have a smaller number of Bars on the second chart, then the first one for the same period, and the same price action.

- If the Range of the Price Movement is smaller than the Constant Bars Lenght (ex: 10 pips), another bar will not be generated until the price range will be broken upside or downside.

- Gaps can be filled with Phantom Range Bars (not on J-forex Platform).

- Time is relative for a Constant Range Bar (it varies until the range of the bar is broken).

- You can Predict the High / Low / Open / Close of the Next Bar.

- If your trading Platform Permits, You can choose the Range of the bars in Pips, ticks or Money ($).

- Trendlines and channels seem to be built for range Bars Charts.

- Trends and trend reversal are easier to detect on Range Bars Charts.

- All the Range Bars have the same Size.

- Technical Analysis is also effective in Range Bars Charts.

- You can use Stop Orders (Conditional Orders) to enter the Market, placed at the top or low of the Bar.

- Money Management and Risk Management also Apply.

- Range Bars avoid to show some of the False Signals present in a choppy, noise Market, in the time based Charts.

- Volumes are better correlated with Price because You can clearly see the accumulation of strenght in the Price Range Bar.

to your Success,

Doctortyby
  • #2
  • Feb 6, 2012 10:04pm Feb 6, 2012 10:04pm
I like ideas of pure price bars without the time too.

At the moment I'm using renko in my trading.

I looked in range bars before but I've never found one (free) which works well. I hope you can posts some range indicators that are reliable.

Look forward to your posts.
  • #3
  • Feb 7, 2012 4:01am Feb 7, 2012 4:01am
This thread is all about range bars:

http://www.forexfactory.com/showthread.php?t=326958

I've had success with the first of the two indicators listed here (I haven't actually tied the other one):

http://www.forexfactory.com/showthre...13#post5303013

Put the indicator into the indicators folder (not experts as it says), then open a one minute chart on your pair of interest. Drag the indicator onto the chart, allow DLLs, set your preferred range, and choose a non-standard timeframe (which has nothing to do with timeframes - it just sets which offline chart you'll open).

Then choose "open offline chart" from the file menu and choose the timeframe you set earlier.

Good luck.

olpip
  • #4
  • Feb 7, 2012 4:42am Feb 7, 2012 4:42am
I trade CRB excellent form of charting. Love to hear how you use them.
Just trade the pullback you idiot!
  • #5
  • Feb 7, 2012 5:02pm Feb 7, 2012 5:02pm
stick this template on your CRB chart
Attached File(s)
File Type: tpl ###wmatroll.tpl   4 KB | 1,323 downloads
Just trade the pullback you idiot!
  • #6
  • Feb 7, 2012 8:54pm Feb 7, 2012 8:54pm
Quoting doctortyby
CONSTANT RANGE BARS CHARTS. (Price Movement / Action - Volatility Charts)
Created in 1995, by a brazilian Trader, Vincent Nicolellis Jr., Constant Range Bars are also called "Momentum Bars". They are standard Charts with Bars that have Open/ Close/ High/ Low and Volume, but they focus on Price Movement, eliminating the Time Factor.

[u]The Range Bars charts have 3 rules:

- Bars have the same Lenght / Height / High-Low Range in Pips, Ticks or Money ($), [i]

- The Close of the Range Bar is always at the High...
YAY you discovered range bars!

Wooo Hooo
  • #7
  • Feb 9, 2012 8:52am Feb 9, 2012 8:52am
Constant Range Bars/Candles Charts advantages:

- Range Bars give You a Better Price Action, by eliminating the Choppy Market Noise because the Time is irrelevant in Range Bars Charts. The Long Candles are cut into smaller candles with the same size that give You clearer Entry Signals, and let You make a Better Analysis.

- Support and Resistence Levels are Clearer on Range Bars Charts.

- Some of the Indicators that are based on Price Action, like MACD, RSI, Bollinger Bands, Stochastic oscillator, Moving Averages, and Especially Volumes, Eliminate the Lag Time in Constant Range Bars Charts.

- Elliott Waves Analysis May be Clearer.

- Range Bars Charts and Volumes Analysis (Volume Spread Analysis) are Two of the best trading Instruments that can be used for a Successful Strategy.

- More effective Price Action shows clearer Shapes and Channels, Trendlines and Moving Averages that define a Trend.

- Congestion Areas in a Flat Market could be seen Better in Range Bars Charts.

- >>>IMPORTANT: All the Advantages of Constant Range Bars Charts that you have read until now, give You an Edge on the Market. They show another view of The Market to You. What Most traders Don't See. But this should also encourage You to use both Kinds of charts (Price Movement and time Based Charts) to have Both Views of the Market.<<<

To Your Success,

Tiberiu
  • #8
  • Feb 9, 2012 8:55am Feb 9, 2012 8:55am
Quoting newyear498
YAY you discovered range bars!

Wooo Hooo
You seem to be an experienced trader, NewYear, and I respect that.

If You have experience with Range Bars, please share some thoughts with us.

Thank You,
Doctortyby - Tiberiu
  • #9
  • Feb 9, 2012 9:11am Feb 9, 2012 9:11am
I have also shared some examples of how range Bars charts can Help us to obtain better Entry and exit Signals from the Market in my other Thread:

Range Bars Charts - The Timing Solution

To Your success,
Tiberiu - Doctortyby
  • #10
  • Feb 9, 2012 9:16am Feb 9, 2012 9:16am
Quoting doctortyby
You seem to be an experienced trader, NewYear, and I respect that.

If You have experience with Range Bars, please share some thoughts with us.

Thank You,
Doctortyby - Tiberiu
I'd rather trade without a chart then anything else personally
  • #11
  • Feb 11, 2012 5:21pm Feb 11, 2012 5:21pm
Quoting newyear498
I'd rather trade without a chart then anything else personally
Greetings New Year,

Your answer is quite challenging for me as I am personally trying to set up a Strategy that goes beyond the Time Factor, Price Action or even the Technical Analysis in my Charts.

Tell me please on what basis do You enter the Market?...
Fundamentals?... How can You trade without the Chart

Thank You,
With respect,
Doctortyby
Tiberiu
  • #12
  • Feb 11, 2012 7:54pm Feb 11, 2012 7:54pm
Quoting doctortyby
Greetings New Year,

Your answer is quite challenging for me as I am personally trying to set up a Strategy that goes beyond the Time Factor, Price Action or even the Technical Analysis in my Charts.

Tell me please on what basis do You enter the Market?...
Fundamentals?... How can You trade without the Chart

Thank You,
With respect,
Doctortyby
Tiberiu
heck if I know... I use charts
  • #13
  • Feb 11, 2012 8:02pm Feb 11, 2012 8:02pm
Quoting doctortyby
Greetings New Year,

Your answer is quite challenging for me as I am personally trying to set up a Strategy that goes beyond the Time Factor, Price Action or even the Technical Analysis in my Charts.

Tell me please on what basis do You enter the Market?...
Fundamentals?... How can You trade without the Chart

Thank You,
With respect,
Doctortyby
Tiberiu
Discovering that time is something humans made up, and trying to take time out of your trading strategy doesn't solve anything when you consider the fact humans made up currency!

Time is too important, you want to compound you money every second if it was possible.. thats how you grow an account fastest(by using your time wisely)


As for trading without a chart,

Considering that economics is the use of scare resources that could be used in alternative ways...

Traders are themselves a micro economy with there money being a scare resource they can use in alternative investment ways

and by pondering those two economic realities you will know how to trade without a chart


hope this helps you out!
  • #14
  • Feb 12, 2012 6:21am Feb 12, 2012 6:21am
Quoting revealforex
Discovering that time is something humans made up, and trying to take time out of your trading strategy doesn't solve anything when you consider the fact humans made up currency!

Time is too important, you want to compound you money every second if it was possible.. thats how you grow an account fastest(by using your time wisely)


As for trading without a chart,

Considering that economics is the use of scare resources that could be used in alternative ways...

Traders are themselves a micro economy with there money being a scare resource they...
I am working on a strategy/ or a group of strategies, depending on the Market Conditions changes (in time, volume and price action).

This strategies should evolve beyond the Time factor and Price Movement, and also Volume Evolution, right through the Time factor/Price Action and Volumes Limits.

I believe that the only way to Evolve is to accept the Limits and grow with them, to set up new Limits, better ones.

Righ now two important factors of my strategies are Time Based charts and Constant Range Bars Charts technical analysis. And of course I use Volumes and Fundamental analysis, considering the fact that at any moment given price has 50-50% of moving Bullish/Bearish.

The rest is my secret...for Now

I am also an economical analyst and I can clearly convince You that Macro and Micro economic factors are mainly controlled and influenced by the Financial Markets these days. Actually the Fundamentals follow the Markets most of the Time.

To Your success,
Doctortyby
  • #15
  • Edited 7:24am Feb 12, 2012 6:34am | Edited 7:24am
Quoting pippin4me
I like ideas of pure price bars without the time too.

At the moment I'm using renko in my trading.

I looked in range bars before but I've never found one (free) which works well. I hope you can posts some range indicators that are reliable.

Look forward to your posts.

Hello dear Friend,

Thank You for Your consideration.

There are some Brokers that can offer You Range Bars Charts straight in their demo Platforms.And they have On-Line charts instead of off-line.You can analyse the Price Action Live.

I cannot post their names here because of the commercial rules but I think You can easily find them on the internet.(or You could send me a PM).

Renko Bars are different.I suggest You to try out Range Bars Charts.

I personally use these setups:
- 4 and 7 Pips Range Bars for Scalping,(related to 15 minutes Time based charts)
- 15 Pips for intraday trading,(corelated with 1Hour Charts),
- 35 Pips for intraweek Trading,(corelated with 4Hours Charts - exception Usd/Jpy which is correlated with 15 Pips RBC).

I also use Time Based indicators in Range Bars Charts like Pivots (Daily, Weekly and Monthly - Main Pivot, 3 Supports, and 3 resistences). It gives me the other view of the Market in analogy with The Time Based Charts.

To YOur success,
Doctortyby - Tiberiu
  • #16
  • Feb 12, 2012 8:47am Feb 12, 2012 8:47am
Quoting doctortyby
I am working on a strategy/ or a group of strategies, depending on the Market Conditions changes (in time, volume and price action).

This strategies should evolve beyond the Time factor and Price Movement, and also Volume Evolution, right through the Time factor/Price Action and Volumes Limits.

I believe that the only way to Evolve is to accept the Limits and grow with them, to set up new Limits, better ones.

Righ now two important factors of my strategies are Time Based charts and Constant Range Bars Charts technical analysis. And of...
Your reality is distorted if you believe price always has a 50% chance of going up or down



and no, Economics don't follow the financial markets in the way you put it,

for example,
I buy AAPL stocks because I believe computer sales will go up and if they go up or down doesnt matter I speculated.

as opposed to your theory which would state,
I buy AAPL for no reason and then computer sales magically go up (because economic supply and demand follow the financial markets right?)



It makes no sense what your saying, thats the only blunt way to say it
  • #17
  • Feb 12, 2012 12:11pm Feb 12, 2012 12:11pm
Quoting doctortyby
Hello dear Friend,

Thank You for Your consideration.

There are some Brokers that can offer You Range Bars Charts straight in their demo Platforms.And they have On-Line charts instead of off-line.You can analyse the Price Action Live.

I cannot post their names here because of the commercial rules but I think You can easily find them on the internet.(or You could send me a PM).

Renko Bars are different.I suggest You to try out Range Bars Charts.

I personally use these setups:
- 4 and 7 Pips Range Bars for Scalping,(related to 15 minutes...
I will get some real time experience with range bars this week. Thanks for yours suggestions and settings.
  • #18
  • Feb 12, 2012 3:47pm Feb 12, 2012 3:47pm
Quoting revealforex
1) Your reality is distorted if you believe price always has a 50% chance of going up or down

2) and no, Economics don't follow the financial markets in the way you put it,

for example,
I buy AAPL stocks because I believe computer sales will go up and if they go up or down doesnt matter I speculated.

as opposed to your theory which would state,
I buy AAPL for no reason and then computer sales magically go up (because economic supply and demand follow the financial markets right?)

It makes no sense what your saying, thats the only...

1) I said that price has 50-50% of going up or down in any given moment.
The probability for the next moment is 50-50%.

Let me explain: If Your Technical analysis or Fundamental analysis show You a higher probability for the price to go Bearish or Bullish, this is a probability based on a past Movement, not on the movement of the price from this singular moment, or the next singular moment.

Not even Price Action or Candlestick/Bar Formations are not based on this singular moment.

In This moment, the price has a past, but can also move against that past movement continuation probability. In any given moment from the Price Movement, it can be static(as a value), or move up or down.

2) As for the Economics Correlation with the Financial Markets You are perfectly right to disagree with me. I expected this reaction, as I was also thought by my economic education to think that Financial Markets follow the Economic Events , News ans Releases(Calendar).

and...

You have to agree with me that if it was that easy everybody would be a millionaire in the Financial Markets.
There's no such thing as an Absolute Formula for the correlation between Economics and Financial Markets Direction.

In some of the time it happens just like You said... Financial Markets follow the Economics with high volatility and sometimes with the "Buy the Roumour , Sell the Fact" Mentality.

But in the other part of the Time..in really important Economic Decisions and Trends, Financial Markets determine the direction for the economics on the Medium and Long Term...

Think very deep when I say: That is how every Crysis in the History has occured, especially the one in 2008... And... we are in a World Crysis aren't We?...

All I am hoping, is that You might consider that there is a posibility that I might be right...

PS: I was talking about Stock Market Indices like S&P and Dow Jones that drive the market, treasury bonds, and especially Currencies... (not only a stock, not even BOA or Google)

To Your Success,
Doctortyby - Tiberiu
  • #19
  • Feb 12, 2012 4:47pm Feb 12, 2012 4:47pm
Quoting doctortyby
1) I said that price has 50-50% of going up or down in any given moment.
The probability for the next moment is 50-50%.

Let me explain: If Your Technical analysis or Fundamental analysis show You a higher probability for the price to go Bearish or Bullish, this is a probability based on a past Movement, not on the movement of the price from this singular moment, or the next singular moment.

Not even Price Action or Candlestick/Bar Formations are not based on this singular moment.

In This moment, the...
Look the problem I have is your disconnecting the stock market from economics.. its part of economics

so to say economic factors follow stock market is wrong

because stock market is part of economics, its the price aspect of economics


and your argument that we all be millionaires if economics effected price of stocks is irrational

first economic events do effect prices of stocks however I'll explain why were not all millionaires

consumers what computer so investors see this and invest in companies like apple, dell, and intel

however apple and intel have more of what market wants so thus investors in dell lose money when they go out of business(I know there still in business I'm just given scenario)

thus were not all millionares



however what does not happen is people invest in apple, dell, and intel and consumers react by stock prices going up to buy more computers
  • #20
  • Feb 12, 2012 5:23pm Feb 12, 2012 5:23pm
Quoting revealforex
Look the problem I have is your disconnecting the stock market from economics.. its part of economics

so to say economic factors follow stock market is wrong

because stock market is part of economics, its the price aspect of economics


and your argument that we all be millionaires if economics effected price of stocks is irrational

first economic events do effect prices of stocks however I'll explain why were not all millionaires

consumers what computer so investors see this and invest in companies like apple, dell, and intel

however apple...
The scenarios for the Stocks are right...
Like I said in my previous post...

But think Global, think Macro - Economics, think beyond companies and stocks... supply and Demand, Imports and Exports.

Think at countries, treasury bonds, world most important currencies, Global Stock Indices... Economical, Political, Financial, Social CRISIS
Think on Medium and Long Term... and you will see how economics and financial markets are correlated. Just watch the news...

The FED, IMF, ECB are the ones who Rule the Economic Environement (their decisions affect Imports, Exports, Inflation, and most of the important economical indicators) and not vice-versa..even if they will never recognize..it is obvious...

Doctortyby
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