MY STYLE - BLOG
As promised in the previous blog comment, here is one of TradeWithMe proprietary Range bar construction approach that combines Range and Renko methods to produce charts that show excellent trend characteristics that we are using for trading now.(click the chart to expand view)
Notice the lower noise in the chart in the lower pane above, that is smoother and shows trend without discontinuities.
In the above charts, the Range bar construction logic that is used is :
- Range bars are of fixed height, range bar value.
- All bars close either at a high or low.
- All new bars open at the edge of the previous range but may close at any level with the conditions given above.
- Blank spaces are filled with empty or phantom bars shown as yellow bars in the charts above.
- Price is smoothed using an approach similar to Renko or Point or figure.
- A test will be done by removing phantom bars and also making the bars open 1 tick above or below the previous bar with a tick level being defined that can be used even with 1 minute bars data.
Innovation at work!
Abnash Singh, Am a Trader helping small traders to realize their dreams.