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Range Bars for MetaTrader PDF Print E-mail
Written by Administrator   
Sunday, 21 December 2008 14:00
Charts can be setup a number of ways:
  1. Time-Based e.g. every 5, 10, 15, 30 minutes
  2. Tick-Based e.g. every 800, 2000 trades
  3. Volume-Based e.g. every 100 contracts
  4. Price-Range-Based e.g. every 10, 20, 50 pips

I find price-range-based charts to be superior to the first three.  The bars look like standard chart bars with an open, high, low and close with the following characteristics:

  1. The high to low range of each bar is constant. 
  2. A new bar is formed only when price exceeds the fixed range of the current bar. 
  3. Each bar is the same height because the range is constant.
  4. The close of a bar is always at the high or low of the bar.
  5. The open of a bar is always one tick below or above the close of the preceding bar.
  6. The time period covered by each bar varies.
  7. All gaps are filled with inserted 'phantom' bars.

Here's a sample chart:

Range Bar

A limitation of the MetaTrader 4 (MT4) platform is the unavailability of range bars.  I have written a MT4 indicator to allow this.  The compiled version of the indicator is available for $60 (USD) per MT4 Account Number.   To purchase the indicator, click on the "Buy Now" button below.  After payment, email your MT4 Account Number to info [at] babyticks.comAllow 3 days to receive the indicator via email.

 

The indicator will be attached in the email as a file named "RangeBarsMT4.ex4".  Here are the instructions to install it:

  1. Copy the mq4 file to your MT4 indicators folder (e.g. C:\Program Files\Broker\experts\indicators)
  2. Go to "File-New Chart" and select your currency pair.  This chart will be referred to as the "Source Chart".
  3. Change the timeframe of the chart to M1.
  4. Attach RangeBarsMT4 to the chart. 
  5. A "Custom Indicator" pop-up window will appear.  On the "Common" tab, check "Allow DLL Imports".
  6. On the "Inputs" tab, you can change the RangeBarSize parameter to suit your trading style.
  7. Go to "File-Open Offline" and select your currency pair with "M2" as the time period e.g. "GBPUSDm,M2".  This will be your Range Bar Chart.
  8. Important: Keep the "Source Chart" open as this chart will feed data into the "Range Bar Chart".  Occassionally, the "Range Bar Chart" may freeze up.  When this happens, just close both "Source Chart" and "Range Bar Chart" and restart your MT4 platform, then start from Step #2 again.  The date and time at the bottom of the "Range Bar Chart" should be ignored as it's irrelevant.

 

 

 

Last Updated ( Sunday, 21 December 2008 16:57 )
 
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