What Is a Range Bar Chart?
Range bar charts are graphical representations of price movements over a given time period and they are widely used by many traders. Range bar charts show changes in prices by plotting changing bars on a chart or graph. Each range bar is equal in size, and will typically cover a few minutes, hours or days depending on the timeframe of the chart. Range bar charts are used by traders to analyse and interpret price action. Range bars specifically show the precise range and direction of price movements, making them a simple and powerful tool for accurately measuring price action.
How Do Range Bars Work?
Range bars are based on the high and low price action of a given time period. When selecting a range bar, traders can choose what size bar they would like to use, which will determine how much time each bar will represent. A “range” is established by the highs and lows of the chosen time period. Once that range is determined, a new bar is created with the next available high and low price. The idea is that each bar contains the same amount of price movement, regardless of the time period. This allows traders to compare price action over different time frames. For example, if a 30-minute chart shows a range of 2 pips, and a 5-minute chart also shows a range of 2 pips, the traders can assume that the same amount of price action took place in both time frames.
What Are the Benefits of Using Range Bar Charts?
Range bar charts offer traders a variety of benefits. They are a useful tool for short-term traders, since they are highly accurate and provide traders a very precise view of price and price changes. Also, they are unaffected by “noise” in the market, since the range is established independently of other factors. In addition, range bar charts are a powerful visual tool for identifying support and resistance levels, as well as possible areas of trend breakouts. Since range bars are focused only on price changes, they are also not affected by news or other market-moving events. This makes them a very reliable tool for traders who focus only on price.
Range bar charts are a versatile and powerful tool for traders of all levels. With their higher accuracy and focus on price, they can provide traders with an effective way of measuring price action in any time frame. While range bar charts may take some time to get used to, they can be very valuable with the right approach and outlook.
What are RangeBars in Forex?
RangeBars are a type of trading chart, used in technical analysis, that displays a set number of pips (points) on the chart in a static range. RangeBars help identify trends in the market and allow traders to make decisions based on those trends. They are very versatile and can be used in both fast and slow markets as the range bar never changes. RangeBars are used most commonly for day trading because they are considered to be one of the best indicators for short-term trading.
How RangeBars MT4 Forex Works
RangeBars MT4 Forex is a plug-in for the MT4 platform that gives traders the ability to use RangeBars in a live trading environment. The plug-in works by creating a set number of points in the chart. The points are determined by the range of the chart and are set to a specific number of pips each time data is received. When the data comes in the chart is populated and each pip represents the time between points. The plug-in also allows traders to adjust the range and the number of pips for each point.
Advantages of RangeBars
RangeBars offer a variety of advantages for traders looking to take advantage of the powerful features offered by the MT4 platform. RangeBars are known for their high level of accuracy and their ability to identify trends quickly and accurately. RangeBars are also highly customizable and traders can adjust the range and number of pips for each point to best suit their trading style. Additionally, RangeBars offer a visual representation of the trend and allow traders to identify areas of support and resistance quickly. Finally, RangeBars are extremely versatile and can be used in both fast and slow markets.
