Having day traded stocks using both range bars and candlesticks on minute charts has provided me with enough statistics to tell you that I trade much better intra day using range bars. Enough so, that it has influenced me to start this blog to help other intra day traders to give them a try. Let me show you the September 15, 2009 Alcoa stock chart on a 5 minute time frame and the same stock chart using range bars. As you can see there was no reason to exit the trade until a red range bar printed as opposed to getting shaken out on the 5 minute chart.
I have found that range bars do keep me in trades longer on trending stocks. My next post I will show you an example of a stock on a trendless day. There too you will see how easy it is to scalp using the range bars over the 5 minute intra day charts.
