question on mechanics of wide-range bars

Discussion in 'Trading' started by swing-scalper, Oct 7, 2008.

  1. During the current volatile markets, we've observed a lot of wide-range bars. For example, in ES V-5000 (constant volume, 5000) chart, some bars can be more than 5 points. In some extreme situations, even 7~8 points observed.

    Can somebody explain more about the mechanics of these wide-range bars? How do these bars form? What's the implication of these wide-range bars?

    Thanks.
     
  2. 1) They're indicative of aggressive buying/selling.

    2) They can also occur at "obvious" price levels based on prior highs and lows.