Time Is Relative with Range Bars

Futures; ChicagoVol. 38 Nbr. 11, November 2009

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Summary


Sideways markets and flat periods of time in markets have been the nemesis of traders for many years, and range bars can help. If your price bar charts have not helped you to become successful, then it is time to try something new, something different, something that could give you a better chance of success. In the mid-1990s, a Brazilian trader, Vicente M. Nicolellis Jr, developed a new and exciting price bar for charting. He had found markets in his country to be unstable and unpredictable and that, for sizable periods of time, the market would be in a sideways or consolidating action. When a market trades within a range, it is really not offering any new information, so it constitutes only one data point. Each market is unique and requires different measures for range bars. Range bars are an innovative concept that will give traders the opportunity to improve their trading success rate.

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Extract


Time Is Relative with Range Bars

As traders, we should always test different ways of trading to try to find something that will give us a better edge in our trades. We should not be afraid to explore new and radical approaches that have not been used in the trading arena. Range bars are a new method of charting that qualifies.

Sideways markets and flat periods of t...

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