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.
Sir, I studied the Range Bar charts on 5 mts. It impressed me. I am a day trader (India),I mostly trade in Crude oil. I have been trading based on other studies, like MA, TMA, Paba, Bollinger bell. I am not successful sofar. I studied 5 mts range bar. Can you guide me a little.
ReplyDeleteCrude oil is dull market during 10 hrs to 18 hrs. It picks up movement at aroung 18 till 2130 hrs. Looking to live chart, I am not able to come to any conclusion. After forming of chart bar, it looks very good, but in live market chart bar/ pattern goes on changing. Example, in Buyer's trend, when it shows sell bar/s, again it turns and continues as buy bar.
Contd. How to take decission or put stop loss order to go with change in trend. 1) Which period suitable for dull market and active market ? 2) What is range bar size suitable for dull market and active market ?
ReplyDeleteps: Marekt price is around INR 4200/=. I shall appreciate, your valuable suggestions on my email chandrakantbombay@yahoo.com
God bless