How to read range bars scalping?

<p>Range-bar charts are different from time-based charts because each new bar in a range bar is based on price movement rather than units of time, like minutes, hours, days, or weeks.</p>

<p id="isPasted">Range bars are used to find scalping opportunities. Range bars are charts that are only drawn when the market price moves by several points defined by the trader. Time is not relevant. Only price movement is relevant and shown.</p><p>Positions are only taken when a&nbsp;range break-out&nbsp;occurs.&nbsp;The Nano Trader automatically detects and draws trading ranges and breakouts.</p><p>When the trend is positive (green background) and establishes itself above the trading range, a position is bought at the market price. When the trend is negative (red background) and the market price establishes itself below the trading range, a position is sold short.</p>

<p>One method for establishing suitable settings is to consider the trading instrument's average daily range. This can be accomplished through observation or by utilizing indicators such as average true range (ATR) on a daily chart interval. Once the average daily range has been determined, a percentage of that range could be used to establish the desired price range for a range bar chart.</p>

<p>Short-term traders may be more interested in looking at smaller price movements and, therefore, may be inclined to have a smaller range-bar setting. Longer-term traders and investors may require range bar settings that are based on larger price moves.</p>

<p id="isPasted">Range bar scalping is a type of trading strategy used in technical analysis. It involves making quick trades based on the fluctuation of prices within a specific range. To read range bars scalping, follow these steps:</p><ol><li>Determine the range: The range is the fixed price difference between each bar. This range can be set by the trader or determined by the volatility of the asset being traded.</li><li>Identify the price range: Look at the price range of the asset over a specific time period, such as 1 minute or 5 minutes.</li><li>Observe price movement: Observe the movement of the price within the set range and look for patterns, such as breakouts or false breakouts.</li><li>Make trades: Use the information gained from observing the price movement to make quick trades, such as buying when the price breaks above the range or selling when it falls below.</li></ol><p><br></p><p>It's important to remember that scalping is a high-risk trading strategy and requires a strong understanding of market dynamics and risk management. It's also essential to have a solid trading plan and discipline in executing that plan.</p>