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Forex Range Bar Charts provide many benefits to traders looking for a more advanced and straightforward approach to charting and trading. Our modern strategy and pure price charting methods are superior to the standard time-based charting programs for several reasons. When comparing charting systems and displays you must first understand that our Forex Range Bar Charts only close the current price bar when the pair covers a specific price range that you establish (instead of just building candlesticks every 5 or 15 minutes etc), and then moves to the right to start building the next range bar, just like a typical chart. However, true range bar charting will not paint a new bar for long periods if price has not moved enough and will not close a small flat bar just to move horizontally because the clock is advancing. In other words, time has no effect on this type of charting.

Since time has been removed from the bar calculation you can benefit from a much cleaner charting display with every specific pip range study you select, regardless of the currency pair you are tracking. This means the tall elongated bars from rapid price moves and the thin lifeless bars from slower price moves are gone, and you are instead provided with a very consistent pure price charting display. Additionally, the typical candlestick chart tails and wicks are also greatly reduced, because a new bar is only created after and each time the current range is filled. This means there is more significance to the small tails and wicks that do present themselves.

The charts below represent the same period of activity. Notice how the Forex Range Bar Chart disassembles the tall elongated time-based candlesticks that were created from rapid price moves and reassemble the very small candlesticks from slower price action. This allows every technical indicator, oscillator and study to respond properly, which improves their performance and reduces lag, while creating a superior and more consistent charting display. The oscillator is smoothed considerably by the Forex Range Bar Chart versus the the time-based chart view. This is the same benefit and improved performance you will find with any indicator used on our software.

Candlesticks made every 5 minutes Range Bars made every 8 pips of price movement

10 Candlesticks

77 pips marked high to low 25 Range Bars

77 pips marked high to low

Range Bars Disassemble Rapid Price and Consolidate Slower Price Moves

The most advanced and promising approach to charting is to eliminate time from the equation and concentrate on the price action.

After all, it is price that you trade rather than time, unless you trade the options market. Essentially this refers back to the early days of technical analysis and the use of Point and Figure Charts that only recorded price changes once a range was covered. You can apply modern concepts and indicators, creating smoother noise free charting displays which also makes it possible to adjust your indicator periods using a lower numerical multiple to run more closely to the current price, effectively reducing lag from any technical study.

Our experience and back-testing has proven that Forex Range Bar Charts are particularly good at focusing on and clarifying real price movement. With our charts, long meandering horizontal congestion is condensed into a bar or two, concentrating your attention on the essential underlying price movement while eliminating unnecessary chart clutter and noise. This also makes chart patterns more identifiable, plus simplifies the use of trend lines and tools. Most chart noise can be removed by selecting the appropriate pip range study for the currency pair you are trading by using a bar size slightly larger than the typical oscillations in the 2 to 15 minute time frame as a guideline. This allows you to eliminate most of the noise that causes false signals, late decisions and poor trade entries.

Clearer Entry and Exit Signals

The charts below represent the same period of market activity on the same currency pair. Once again you will notice how our Forex Range Bars disassemble the tall elongated time-based candlesticks, tails and wicks created from rapid price moves and also reassemble the very small candlesticks from slower price action. You can also see how the oscillator is smoothed considerably by the Forex Range Bar Chart, which is providing a more accurate display versus the oscillator on the time-based chart. Our Forex Range Bar Charts allow for a more precise charting strategy by eliminating the noise and enabling more accurate indications for entering and exiting trades.

Range bars made every 8 pips of price movement Candlesticks made every 15 minutes

Both examples show the same pair and time frame with approximate price movement from and starting at:

77.80 up to 78.30 (+50) down to 77.35 (-95) up to 78.20 (+85) down to 77.10 (-110) up to the 77.40 range (+30)

These examples clearly show some of the differences and benefits of using our Forex Range Bar Charts, and should help you understand a few of the reasons why many traders experience problems when trying to make decisions with charts that are based on time intervals and not pure price movement. What does time have to do with your charts and trade decisions, when as a trader what you really care about is what’s happening to the price and the clarity of your chart views?

Are you ready to learn how to use Forex Range Bar Charts in live market conditions? You will see a more accurate view of the currency pairs and their price movements using our more advanced and modern charting software. We maintain a 24 hour online community, moderating the major market sessions and news events, teaching specific strategies and offering hands-on guidance. Forex Range Bar Charts can help you become more consistent and trade with greater confidence, while improving your market behavior long term.