Wide Range Bars

Discussion in 'Technical Analysis' started by Gary Fox, May 7, 2007.

  1. Gary Fox

    Gary Fox

    We are discussing Wide Range Bars (WRB) at work (no, the boss is not aware of this). I don't have any TA books here, and a web search didn't provide much info.


    Is a WRB the open to close range, or the high to low range?

    I guess one could look at a WRB and visually identify it, but is there a way to code such an animal? That is, how would one describe a WBR? Is it a certain % larger that the average bar size over x periods, etc?

    TIA for any input.

  2. Lucrum


    What constitutes a WRB is probably as subjective and varied as many chart patterns.

    I know a successful ET member that (if I'm not mistaken) considers any bar wider than the previous three as a WRB.

    In the past I'd consider a WRB as one where the range (H - L) is more than 1.5 wider than the average range.

    More recently it has to be greater than one standard deviation.
  3. Hi Gary,

    There's a difference between a Wide Range Bar and a Wide Range Body although both are called WRB.

    The Wide Range Bar is a term associated with Bar charts and represents the price area between the High and Low.

    In contrast, Wide Range Body is a term associated with Candlestick charts and represents the price area between the Close and Open.

    The subjectivity from one trader to the next is how they define a WRB in relationship to the prior price action.

    My own personal preference is that a WRB has a body with a price area > body price area of each of the most recent prior three intervals.

    Therefore, base upon my above definition, I'm obviously using candlestick charts.

    That personal definition for me is not subjective.

    Yes, you can easily code a WRB to that they are either color coded or whatever with programs like Tradestation.

    Yet, after a few weeks of looking at them, you really don't need any code to tell you if something is a WRB or not unless your doing some sort'uv trend strength analysis.

    In the past, I found the counting of WRB's as a great tool for trend strength analysis.

    However, I've been using them since the 80's and don't need a computer code to count for me because I can quickly count them via visual inspection of the trend.

    When I first started trading and studying the markets, I called them Wide Range Bars until the arrival of candlestick charting software. That's when I began calling them Wide Range Bodies especially when I became more of a price action only trader.

    Last of all, the study of WRB's (WRB Analysis) is basically volatility analysis as it interprets changes in supply/demand.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  4. Gary Fox

    Gary Fox

    Thank you Mark.

    When you say "price area > body price area of each of the most recent prior three intervals" are intervals the same as individual bars?


  5. Hi Gary,

    Yes, my use of the word interval equates to a single bar on time based charts.

    For example, the 5min chart interval that open at 1030am and close at 1035am (one interval) is the same as a bar that open at 1030am and close at 1035am (one bar).