Range Bar Charts

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Most technical indicators and charting systems were
developed decades ago -- perhaps as much as 100 years ago,
or more! This isn't the case with Range Bar Charts. They
were developed by Brazilian trader Vicente Nicolellis in the
mid-1990s, and they are designed to make use of volatility.
They do this by eliminating time as a factor.

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Say what? How can you have a chart that doesn't even
consider time? How can this be an improvement; to consider
less data, especially a datum as important as time itself?

Well, during periods of low-volatility, insignificant trades
can add noise. If one one-minute block of time has just 10
trades, while another one-minute block has 200 trades, why
should those one-minute blocks be considered equally? By
considering them equal, you're actually giving added
importance to the 10 trades over the 200. Range Bar Charts
remedy this discrepancy.

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In this episode, you'll learn:

-How Range Bar Charts are calculated, and how they can be
read.

-How to set up your Range Bar Charts with appropriate
ranges, using another statistic: Average True Range (ATR).

-Why Range Bar Charts are arguably more effective than
standard charts (we've already given you a hint in this
email).

-How you can use Range Bar Charts as a simple measure of a
security's volatility.

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http://www.TradingTips.com

Happy Trading!