Range Bars provide many benefits to traders looking for a more advanced approach to charting and trading. Our clear strategies combined with our pure price charting technology are superior to standard time-based charting programs for several reasons. When comparing charting displays, understand that our Range Bars only close the current price bar when the pair covers a specific range and then it begins to build a new bar, instead of just building new bars based on a time intervals that have no actual relation to trading. A properly designed Range Bar chart will not paint a new bar for long periods if the price has not moved, so it will not close a small flat bar just to move horizontally because the clock has advanced. In other words time has no effect on this type of charting.
Since time has been removed from the bar calculation you benefit from a much cleaner charting display with every specific pip range study you select, regardless of the currency pair you are tracking. This means the tall elongated bars from rapid price moves and the thin lifeless bars from slower price moves are gone and you are instead provided with a very consistent pure price charting display. Additionally, typical long candlestick tails and wicks are greatly reduced because new bars are only created after and every time the current range is filled. This means there is more significance to the small tails and wicks that do present themselves.
Range Bars Disassemble Rapid Price and Consolidate Slower Price Moves
The example shown above represents the same period of activity with a 77 pip down move from high to low marked on both charts. Notice how the Range Bar chart disassembles the tall elongated candlesticks created from rapid price moves and reassembles the small candlesticks from slower price action, displaying 25 consistent bars versus 10 candlesticks. This smoothing improves performance and reduces lag from every technical indicator, oscillator and study creating a superior and more consistent view. You can also see the oscillator is smoothed considerably by the Range Bar chart versus the the time-based chart view, which is the same benefit and improved performance you will find with any indicator used.
The best approach to charting is eliminating time from the equation and concentrating on the actual price action. Professional traders look for opportunities based on the potential of price movement and not the passage of time. This refers back to the early days of technical analysis and the use of Charles Dow's Point and Figure charting which like Range Bars only records price changes once a specific range is covered. However, you can apply modern concepts and technical studies to our Range Bar charts which makes it possible to adjust your indicator periods to run more closely to the current price, advancing indications and confirmations.
Clearer Entry and Exit Signals
Our experience and back-testing has proven Range Bars are superior at clarifying price activity and patterns, which enhances your ability for recognition of potential opportunities. When using Range Bars horizontal congestion is condensed and rapid price moves are disassembled, which means all the flat lifeless and tall elongated bars are eliminated. This presents you with a clearer chart view and concentrates your attention on the essential underlying price movement while eliminating unnecessary chart clutter. This makes chart patterns more identifiable and simplifies the use of trend lines and tools, allowing you to eliminate many false signals and poor entry decisions.
Benefit from the clarity differences our software provides and learn why so many traders experience problems making trade decisions based on time and take advantage of that knowledge. Allow us to teach you how to use FiboLivePro in live market conditions. See a clearer view of the pairs and their price movements using our advanced technology. FiboLivePro can help you become more consistent and trade with greater confidence, while improving your abilities long term. We cordially invite you to join us.
5 min Candlestick Chart vs 8 pip Range Bar Chart