Chart types
Range bars
Bars that each cover exactly the same price range from low to high, however long that takes.
The idea in plain words
A range bar closes as soon as its high–low reaches the set range, and the next one starts. Quiet markets make few bars and busy ones many, so each bar carries the same amount of movement.
How it is calculated
Built here from the candles of the timeframe on screen, following open → low → high → close (or open → high → low → close for falling candles). Range: automatic (ATR 14, rounded) or your own value.
A bar ends when high − low = range; the next bar opens at that priceHow to use it
- Read breakouts and trends with less noise than time candles.
- Volume-like reading: many bars in a short time = activity.
Drawing conclusions
- Bars always have the same height; the last one is still forming.
Example
GOLD M5 with a 3.00 range: a quiet hour makes two bars, a news spike ten.
Prices in examples are illustrative.
Watch out for
- Built from candles, so the path inside each source candle is estimated.
A little history
Introduced by the Brazilian trader Vicente Nicolellis in the 1990s.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.