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I am "guessing" the daily bars you mention are time bars which are based on a time setting. Range bars are price based not time based so the two are different. Even when looking at range bars the range setting can be changed so two charts on same instrument can be different. There are many types of bars and many settings so you first have to figure out what you are looking at to compare.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
True, but the average is what I'm looking for. I've used the ATR to determine the average size of daily bars for a particular instrument but I'm not sure how to translate that data into the correct setting for a range bar.
With a lookback period 3 months or 63 bars, the average true range is 25 points or 100 ticks. Over the assumed period of three months a 100 range chart should approximately generate the same number of bars. It will generate fewer bars during the first two months with lower volatility and more bars for the last three weeks.
You are a legend, sir! Now it makes sense. I was thinking I had to subtract the difference between the appoximate top and bottom of the range over a period of time to get the average. But you're saying that the number currently displayed IS the average over a period of time.
Was really looking through several forums about where to post this question and I had you in mind...Thanks in advance.
What is the reason to prefer even numbers vs odd numbers on the Range bars? I see a lot the 4R (like the base for Perrys Charts) and from then the 8R and the 12R for the MTF that you kindly shared with the community.
Is there any technical relation between the data coming in that prevents from going 3R and then 7 or 11R ?
Certainly the ATR of the instrument you are trading, and one's trading style, has to do with the facts of going on a smaller range than a larger one..but that other matter has called my attention.
For minute, volume and tick bars it makes sense to select even periods. The Babylonians selected 60, because it can be divided by 2, 3, 4, 5 and 6. If you have an hourly chart and a 5 minute chart, you will therefore get a common bar close from time to time. The same applies to volume and tick charts.
However, a 4-range bar cannot be constructed from two 2-range bars because of the overlap. There is absolutely no reason to use even number for range bars. I think people just do it because they are used to do so with other bar types and they are unaware of it.