Range Bars - Version 1.90.416.963 Beta

Questions about MultiCharts and user contributed studies.
joecgoodman
Posts: 4
Joined: 13 Feb 2006

Range Bars - Version 1.90.416.963 Beta

Postby joecgoodman » 25 Feb 2006

1. [b]Good: The new range bars are much improved, in my opinion, because they range from high to low rather than open to close.

2. Bad: Once the bar's high - low = X Points the bar paints and another one begins. The negative effect of this is that you get a succession of bars that all have the same high and low, which puts noise in your indicators. As long as the stock, emini or whatever is trading within the defined range, there is no need to start a new bar. A new bar should begin when a trade occurs outside the defined range. The attached picture should make this easier to visualize.

3. Ugly: You'll also notice in the attached picture that there is a fluke bar every so often that is much larger than the defined range.
Attachments
2006-02-24 CRBs.jpg
Picture of Range Bars as of 2-24-2006
2006-02-24 CRBs.jpg (194.81 KiB) Viewed 615 times

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Alex Kramer
Posts: 834
Joined: 23 Feb 2006

Postby Alex Kramer » 27 Feb 2006

Thank you for the input; it seemed an interesting idea to start a new bar only when there is a movement outside the range. At the same time it seems tricky - in a situation where there’s little market movement, the plot may end up containing much too few bars. Is that your own conception, or does anybody else use it – could you send us a link to an example of such implementation or quote a source?

The extra-sized fluke bars you mention are ugly but they spring directly from the incoming data – they display real large-scale price movements and so override the preset range. I've tried and saw huge bars in incoming price data and in the range chart, matching by time.

joecgoodman
Posts: 4
Joined: 13 Feb 2006

Postby joecgoodman » 27 Feb 2006

Alex Kramer wrote:The extra-sized fluke bars you mention are ugly but they spring directly from the incoming data – they display real large-scale price movements and so override the preset range. I've tried and saw huge bars in incoming price data and in the range chart, matching by time.


Alex, I don't understand your explanation for the extra-sized bars. The incoming data is just a stream of tick data, not a series of bars, right? You said you "saw huge bars in incoming price data". These bad bars ruin trade signals and thus need to be fixed if at all possible.
Thanks,
Joe

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Alex Kramer
Posts: 834
Joined: 23 Feb 2006

Postby Alex Kramer » 27 Feb 2006

>These bad bars ruin trade signals and thus need to be fixed if at all possible.

To aid in such situations, we intend to implement data filtering, so the user can customize the filtering settings in any way desired, to remove ticks with values or ranges over a certain level etc.
It is just not part of basic plot charting functionality to discard incoming data.

tosk
Posts: 19
Joined: 07 Feb 2006
Location: USA

Postby tosk » 27 Feb 2006

I believe what Alex is saying is that there is a gap in the data meaning there would not be a tick at the close of the over-sized "true range bar" if cut down. This would then create a phantom tick at the open of the next bar. If given what you want, the chart may be pretty but it would not be tradable. You would have to cross reference another chart to see if there was actually a tick at that price that could be traded as you can't trade an "air gap". What value is a chart that doesn't show what can be traded? What problems will this cause to people trying to optimize?

Tom


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