not for everyone -- time vs range Range bars and time-based bars are different ways to visualize price action in trading charts. Each has its advantages, but here's why range bars are often considered better than time-based bars, especially for certain trading styles: 1. Focus on Price Movement Range Bars: Range bars are created based solely on price movement, ignoring the time aspect. They form a new bar only when the price moves by a predefined range (e.g., $5 or 10 pips). This means range bars highlight price action clearly and avoid clutter from minor fluctuations or periods of low activity. Benefit: Traders can focus solely on market volatility and movement, reducing distractions caused by time intervals with minimal activity. Time-Based Bars: Time-based bars (e.g., 1-minute or 1-hour bars) form based on fixed intervals of time, regardless of price movement. As a result, they may contain a lot of "noise" during slow markets, where price barely moves within the period. Challenge: During low activity, charts can look stagnant, potentially misleading traders into overinterpreting minor moves. 2. Consistency in Size Range Bars: Every range bar represents the same amount of price movement, making patterns like trends, support, and resistance clearer and easier to identify. Benefit: Consistent size removes variability, making it easier to spot momentum shifts or reversals. Time-Based Bars: The size of time-based bars can vary widely depending on market activity. For example, a 5-minute bar during a high-volatility period may be much larger than one during a quiet period, leading to inconsistent visual patterns. Challenge: Irregular bar sizes can make it harder to analyze and predict trends effectively. 3. Efficiency in Active Markets Range Bars: In volatile markets, range bars adjust dynamically to form faster and provide an immediate sense of price action. This makes them ideal for day traders or scalpers focused on rapid trades. Benefit: Traders get timely signals in active markets without waiting for time intervals to complete. Time-Based Bars: Time-based bars form at regular intervals regardless of activity, which can lead to delayed signals when markets are moving fast. Challenge: Traders may miss opportunities or experience lagging insights during high volatility. 4. Filtering Noise Range Bars: By ignoring time intervals, range bars filter out periods of inactivity or low volatility, making trends and breakouts more apparent. Benefit: Noise reduction creates cleaner charts, which can improve decision-making. Time-Based Bars: Time-based bars include all market data, even during stagnant periods, which can make charts look cluttered. Challenge: This noise can distract traders or lead to false signals. Ideal Use Cases Range bars are better for traders who prioritize clarity in price movement, such as scalpers or day traders seeking precise entry and exit points. Time-based bars are more suited for long-term traders who rely on time intervals to analyze market trends over extended periods.
I was thinking out aloud when I created this Thread. I believe I know the exact Trading answer using a scientific process, but others will use just straight T.A. ... or AI (thanks MB lol)
Let us know how your magical Holy Grail ✨ process works. Every trader claims to have one, but it essentially delivers nothing. It's essentially a standard paper cup only found in motels and birthday parties.
You'll see my results and verified trades eventually. I was hoping for intelligent discussion, but got trolled so I'll focus on my continued trading, researching and testing.
I wasn't trolling. I love to see traders defeat the market, understand it... and make shit loads after shit loads of money. Take a photo of yourself holding a butt cheek in one hand and a champagne bottle in another hand and a large brick of cash in another hand.
I meant Sekiyo the bitter unprofitable Trader. Thanks for your good input. I'll send Sekiyo that pic, he'll like it, weirdo he is.