Doji's Range Bar Trading
Posted: Sun Oct 31, 2010 6:43 pm
I would like to start a new thread, in regards to rangebar trading. I personally perfer range bar trading. I am more of a mechanical trader with a hint of discrestionary tendencies. Range bars are very much visual which enables me to see price movement more easily.
For those who might not know what range bar trading is, let me try to explain as I know them. Price constantly moves up and down on every time frame, every day. Range bars are formed when price moves a certain span in price. An example would be, if we want range bars that are set to 20, they would be drawn and every bar would be the same size of 20 pips if you will from high to low. Time is not a factor in range bar trading.
So if price is at 1.3923, price moves either up or down. That bar will not complete until price has moved 20 pips from that price, 1.3943 up or 1.3903 down. Price can take 4 hours to do this or just seconds to move 20 pips. When a bar has reached a 20 pip spread from high to low or low to high a new bar is then formed. AsThe result is pure price movement.
When the market opens tonight I will post some range bar charts as an example. Also I will share some ideas that I have and use with rangebar trading for those that are interested.
Dojirock
For those who might not know what range bar trading is, let me try to explain as I know them. Price constantly moves up and down on every time frame, every day. Range bars are formed when price moves a certain span in price. An example would be, if we want range bars that are set to 20, they would be drawn and every bar would be the same size of 20 pips if you will from high to low. Time is not a factor in range bar trading.
So if price is at 1.3923, price moves either up or down. That bar will not complete until price has moved 20 pips from that price, 1.3943 up or 1.3903 down. Price can take 4 hours to do this or just seconds to move 20 pips. When a bar has reached a 20 pip spread from high to low or low to high a new bar is then formed. AsThe result is pure price movement.
When the market opens tonight I will post some range bar charts as an example. Also I will share some ideas that I have and use with rangebar trading for those that are interested.
Dojirock