The eotpro.com folks have been investigating the strengths and weaknesses of range bar charts. Tradestation doesn’t have range bars, but it does have PnF charts. And, you may or may not know that PnF charts are an extremely close cousin of range bars. The only difference is that a range bar chart will split up a long directional move into multiple bars. This means that most indicators will move over to range bar charts pretty smoothly, while indicators are usually pretty hit-and-miss on PnF charts.
Still, I applied the various eotpro indicators to some PnF charts tonight, and about half of them seem to do really well! And, importantly, the GCycle_Stochastic and GVol_Oscillator seem to be useful. Those are the two main indicators I use in my recent trading.
So, I may investigate that further, since as many of you know I am a big fan of PnF charts. They were a big part of my stock trading setup. For futures, I haven’t been using them as much, except for reference. Maybe that will change…
November 28th, 2007 at 1:28 pm
Looks like this method takes out the noise/chop that you were looking for. :)
Look forward to your further research.
E.