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Phil,
I used to subsribe to TASC but let it slide when the quality of the
magazine started to slide and I found more bang for my buck by
subscribing to Roy's newsletter.
I did check to see if there were any traders tips on the topic and
only found a brief summary of the article which follows.
-------From TASC----------------
Trading Range Bars
by Suri Duddella
There are different ways to chart price movements. Here we look at
range bars and how they help identify the underlying trend.
Bar charts, candlestick charts, and line charts are the most popular
when it comes to charting, but what about range bars? Range bars are a
unique way of building price charts and are excellent in finding the
underlying trend and movement of the current bar. Since each bar on
the chart has the same range (high to low), it reduces the volatility
and noise within the range of the bar.
Range bars are generated continuously as a new tick is formed outside
the minimum price range. They are closely related to point & figure or
renko charts, which are also based on equal price range change. The
range bar chart is a study of pure price movement, and time is not
taken into consideration while plotting the price action. Range bar
movement is not time-dependent but does depend on price movement when
a preset range of a price bar is complete; hence, the time axis (x-
axis) on a range bar chart is irrelevant.
When range bars are constructed, chart dependency on the time scale (x-
axis) has been removed as it produces its own price scale on the y-
axis. This helps remove gaps and produce clear levels of support &
resistance. Range bars also work with other trend indicators, all
instruments, and all time frame trading. Range bar charts are great
for observing active market activity and are helpful in identifying
support & resistance lines, buy/sell signals, and trendlines.
---------------------------------------------------------
In Metastock we can do Renko, KAGI, P&F bars and Three Line Break
charts. Take a look at KAGI charts and see if they aren't somewhat
similar to the range bars. For an explanation, click on the help icon
amd type in KAGI. It provides a pretty good description.
Hope this helps,
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "Philip McIntosh"
<pmcinto1@xxx> wrote:
>
> Hi,
>
> I just read an interesting article in S&C about trading Range Bars.
> Is anyone familiar with them and /or how to construct them
> in MetaStock.
>
> Thanks,
>
> Phil
>
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