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Are Range Bars and Renko Charts Better?

radicaltour

Moderator
VIP Member
StaticX captured our imagination with Range Bars.
In this thread I would like to discuss whether they are advantagous for other types of trading.

For example, i like trading with Fibs (harmonic patterns). But looking at the Range Bar charts don't give me confidence that I can do better than a normal candle stick chart.

Please leave any comments/suggestions/links you may have to explore this subject.
thank you.
 

StaticX

Member
I must admit that Range Bars are very helpful as an interresting new way of doing analysis. I find that certain existing technical analysis tools do not work 100% with it. (like fibos).

I know that the MACD, CCI and MA's (EMA etc..) work very well with range bars. (I am going to assume that most of the other oscillators type indicators will work)
Where I do find Range Bars excelling is through the ability to clearly identify Support and Resistance areas.

The only possible draw back that I am finding with Range bars is that if you are a mutli-timeframe trader then Range Bars are not for you. The simple nature of Range Bars means that we are removing time from the equation and letting each bar build itself based on the number of pips you have predefined for your currency pair.

Another interesting concept I had to get use to was that of SL, where as before, depending on the time frame, you would place a 10-50 pip stop loss, now it kind of bowls down to "how many bars back am I going to set my stop loss too).

I am still extremely new to the concept of Range Bars and keep discovering all kinds of things about them. This thread could be a very good one and it would be nice if we can highlight some of the myths and mysteries around both Renko and Range Bars.

PS: Range Bars are not a holy grail analysis tool, nothing is... well at least not until I finally complete my time traveling chair, then hell yea... (Or some super duper scammer releases another $5-can-read-the-next-5-bars type indicator, yea right :) Neural Networks my ass !!! ) Funny I say that, I did come across an article where some "crazy scientists / pot smoker" was saying that the nature of Range Bars allows one to apply some statistical probability methodologies to be able to predict to an accuracy of 90% the next bar....(his work was all theoretical and there were no indicators)

Well those are my thoughts for now, as I come across more information I will gladly be sharing it here.

Cheers
StaticX
 

dbg

Member
StaticX....your a genius and you don't even know it...thats the missing link...use a genetic algorithm or neuro net to train the range bar script or indicator to a specific currency pair...brilliant...!!!lololol...:D
 

lerxst

Member
Great discussion here and thanks to StaticX for his CCI thread.

As to Renko or Range bars, my vote goes to Range bars. Based on previous experience, you'll find that while the two methods calculate the bars in a similar fashion range bars have the added advantage in that they can display certain characteristics of bar formations.

For example, with range bars, you can see candle formations such as doji, hammer, reversal signals, etc while with renko bars, it's merely a colored bar with no other information.

So you get the smooth market action nature, plus some added information to look at from range bars over renko.
 

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