Why do people use Volume, Range and Tic charts?

The concept of the range bar is just an extension of a PnF chart. I'm sure you're going to say that a student of yours invented them too.

And unless that's student's name is Cynthia Kase or hails from South America, it really strains your credibility to even make the statement that "a student of yours invented range bars" ... or for us to believe it.

Whatever.

This is getting boring.

Have a nice trading day.

 

And some people have moved beyond bars entirely.

LC

 

I completely understand them. A new bar does not start until a price tick is received that would exceed the fixed (user defined)VOLUME of the current bar. That and the 'phantom bars' are just that. There is NO need to add noise into an already noisey environment.

I thought its funny that your very same statement can be applied to volume bars.

 

Here's (one of) my chart(s) showing my useless, noise trading, 3 steps back, range bars ... wonder which direction the trend was in last Thursday and Friday, LOL.

P.S. What are those markings on the side do you ask? Volume by Price, the key to using Market Profile.

 

Elaborate please.

 

Nicolellis Range Bars were conceived in 1995 by a Brazilian broker and trader - Vicente M. Nicolellis Jr.

During 13 years running a trading desk in Sao Paulo, where local markets tend to be volatile, he wrestled with the problem of how to handle this volatility and its variability. Finally he concluded that the most promising approach would be to eliminate time from the equation, and just concentrate on price.
After all it is price that you trade (rather than time, unless it is an options market).
Essentially this reverts to the early days of Technical Analysis, and the use of Point an Figure Charts which just record price changes.
By using a constant range, ex. 10, and opening a new bar once that range is covered, one can also apply modern concepts of indicators, which are bar based.
In 1996 the concept was computerized, which meant that many more markets could be studied.
Experience in the last 8 years has shown that Nicolellis Range Bars are particularly good at focusing on and clarifying movement.
The way in which a long meandering, horizontal "congestion" is condensed into a bar or two, concentrates attention on the essential underlying price movement while eliminating unnecessary "clutter" and "noise".
This also makes the use of Trendlines easier.

from www.fibonaccitrader.com

 

Thank you very much for your post sir.

Your sourcing is correct and it was after realizing the short comings of time based charts for intra-day trading, and reading about Vicente that I started exploring range bars in earnest.

I have this information stored in one of my zip files, but I was busy and couldn't look it up (hence the "hails from South America" comment in my previous post).

Normally I get along pretty well with Prof Logic, but when he starts making fictious, off the wall statements like he did I have to let him know that the only who is going to be participating in his drug induced fantasies is he himself alone.
***
Here's another one of those useless, ass-backwards range bar charts, this one is the TY. Notice it has the tendency to move in the opposite direction as the financials. While I don't have the exact stats on this one, a cursory glance at my charts tells me this is probably true over 60-70% of the time.


P.S.

If you're really "just21" something tells me you have a very profitiable future ahead of you.

 

What software did that chart come from, mandelbot?

 

Quote Tracker, it gets the job done pretty well.

Anekedoten over on the AHG for Struggling Traders thread along with an author by the name of Suri is also exploring these alternative types of charting.

Good trading.