Advantages of Trading with Range Bars 1. This is because the range bars are of equal size on every chart. Forex range charts triggers of the pattern remain the same as those in the time bars.
The common practice is waiting until the close of the bar and then a new bar begins. This helps the traders to pin point the sell or buy stops ahead of the time allowing the trader will get a better position. With the Range Bars, the traders are still very capable of using their most favorite indicators. There is no requirement to changing the setups with your favorite indicator. The traders are capable of making fewer trades. This means that the trader will make larger trades, improve the reward to risk ratio.
The traders are capable of knowing where the Range Bars bottom or top is. This allows the trader to easily sell or buy orders ahead of the time and this in turn, enables the trader to be early first into a trade. You can very easily use the stop orders to enter a trade on the reason that you are very aware where the bottom or top is most likely going to be. Range Bars were developed in the mist of 1990s by Brazilian broker trader called Vicente Nicollelis.
This is the reason why some people refer to the bars that he developed as the Nicollelis range bars. Nicollelis had spent more than 10 years running a desk for trading in Sao Paulo, Brazil. He had the belief the movement in price was very vital to the understanding and use of volatility. He thus developed the Range Bars in order to take in to consideration the price factor only while eliminating the time factor from the whole equation. Nicollelis came to find that those bars which were based on the price only but not the time or any other market factor provided new way of utilizing and viewing the volatility in the markets. The example image below shows the difference of a time chart and Range Bar chart. How to calculate the range bars The Range Bars take in to consideration price only.