Advantages of Trading with Range Bars
1. The Range Bars eliminate by greater degree of the ‘noise’ that is associated with the minute/time chart bars. This is because the range bars are of equal size on every chart. The resultant charts seem smoother.
2. They eliminate the time factor. The triggers of the pattern remain the same as those in the time bars. The common practice is waiting until the close of the bar and then a new bar begins. This helps the traders to pin point the sell or buy stops ahead of the time allowing the trader will get a better position.
3. The Range Bars show the trends more easily and they additionally show the sideways market in clearer way without choppiness (noise).
4. With the Range Bars, the traders are still very capable of using their most favorite indicators. There is no requirement to changing the setups with your favorite indicator.
5. The traders are capable of making fewer trades. They will have bigger stops while the
successful trades will produce more profits. This means that the trader will make larger trades, improve the reward to risk ratio.
6. The traders are capable of knowing where the Range Bars bottom or top is. This allows the trader to easily sell or buy orders ahead of the time and this in turn, enables the trader to be early first into a trade. You can very easily use the stop orders to enter a trade on the reason that you are very aware where the bottom or top is most likely going to be. For example, if the bar is going up and you are aware of the low, you can then put 15-tick (or any other setting which you may be in) change of price from the low and then set the stop off low or high. After making the new low or high you may be required to similarly adjust the stop.