Our method relies on Range Bars (or any bar using a chaotic price series) not on time base bars.

The primary reasons that we use Range Bars as opposed to time based bars are:

  • CRITICAL INSIGHTBy aligning order flow with Range Bars we can readily visualize where order flow had an impact on a change in Price.
  • You can define a pivot at the close of a Range Bar whereas with time based bars you cannot confirm a pivot until the bar after the pivot is formed closes.

The 3 concepts that uniquely define Range Bars:

  1. Have a high / low range that equals the specified range.
  2. Open outside the high / low range of the previous bar.
  3. Close at either its high or its low.

Note - Though Renko Bars are awesome, they can have false price prints. Since we are deploying bots predicated on the prices printed on the bar, it would not behoove any of us to have a bot ingesting false price information.