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Cynthia Kase in chapter 8 of her book "Trading With the Odds" 1996 describes
in detail the concept of range or universal bars and how to select an
appropriate range size for them. Infact she refers to them as Kase
Universal bars. Here is a quote of the last 2 paragraphs in chapter 8.
"Our observations to date are that momentum and other sensitive techniques
work well with these bars, and, thus, trading can be sped up without
degrading performance. We note, however, that timing into the market is
better done with sensitive indicators, e.g., the MACD or Stochastic %K
versus %D crossovers, rather than by moving averages or other trending
techniques. The reason appears to be that the turns in the universal bars
are so clean and sharp that the lag in moving averages and other trending
techniques is exaggerated, as it always is in V-type turns.
Thus, we expect that a major improvement of the universal bars, in
addition to reducing risk, will be to clean up and clarify market turns and
allow traders to use more aggressive timing techniques without sacrificing
trading accuracy."
bobr
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