range bar size

May 10th, 2010, 06:09 AM

I trade fce and work on stoxx and fdax. I see many of you using range bar charts. How do you define the proper range bar size?

May 10th, 2010, 06:39 AM

hi jb,

in example

a 6 range bar can be built from any tickssize , any volume, any time duration ,
BUT high minus low must be equal to 6 ticks - if we go 1 tick above / below that, the next Range-bar is starting.

hope i hit your question

May 10th, 2010, 06:46 AM

Their is no answer for this, it depends how you're trading, where are your stops, your targets, and if are you're usually scalping for few ticks, or trying to catch larger movements.
The idea is maybe to put just one range bar chart, let's say 5 range for the FCE, and see how it moves during the day.

May 10th, 2010, 08:15 AM

If you are trading momentum, perhaps the ideal range size would be a function of volatility? Just a thought.

Watch your money management too. No point trading 12 range bars if your max loss per trade is $100.

May 10th, 2010, 10:25 AM

Average range bar size is between 5 and 6 --- i decide the size of the range bar based on volatility. fdax is alot more volatile than stoxx so you may want to increase yr range bar size of this instrument to say 7 -- you must play around with this to see how your charts look over a couple of days at least with yr chosen range sizes. can you see the trend with your chosen range sizes? is what you should ask yourself....

range bar size

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range bar size