Range Charts

A Range Charts is also known as a Range Bar and it is a type of chart that is entirely based on a range of pip movement.

What is a Range Chart?

A Range chart is a type of chart that is entirely based on a range of pip movement and not in time. That means that a bar is plotted only if a pre-specified range of pips is achieved no matter if that range is achieved in a few minutes or in a few hours. That price movement is calculated between the high and the low and each bar is closing either at high or low.

The Range Charts were developed in themid-90ss by Vicente M. Nicolellis, a Brazilian trader.

Range Charts Features

1. Range charts eliminate the factor of time

2. A Range chart bar will always close at a high or at a low

3. A Range chart bar has the same price increment

4. Range Charts are able to eliminate the annoying market noise

5. Range charts plot more bars during active market hours and a few bars during non-active market hours

6. Range charts become more active in high-volatility days and less active in low-volatility days

7. Range charts are ideal for analyzing trending markets

Range Charts and Settings

Forex traders usually set ranges between 5 and 25 ticks.

◙ Short-Terms: 5 ticks, 10 ticks, and 12 ticks

◙ Long-Term: 20 ticks and 25 ticks

Trading with Range Charts

Forex Traders who wish to use a Range Chart can choose among different trading platforms including MetaTrader4 by adding an additional indicator, NinjaTrader, eSignal and several other platforms.

MORE CHART TYPES: » Heikin-Ashi Chart | » Renko Price Chart | » Tick Price Chart

■ Range Charts

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