Technical Glossary / Chart Types & Price Representation
Range Bars
Bars that each cover a fixed price range, so a bar closes only when that range is complete.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A range bar has a high-to-low distance set in advance. The bar stays open until price has travelled that distance, then a new bar starts. Busy markets print many bars. Quiet markets print few. The clock does not decide the close.
How it works
The range is often a price increment or a fraction of ATR. Because every bar has a similar height, a tall-looking candle on a time chart becomes several range bars, and a drift becomes one.
How to identify it
Candles or bars whose high-low distance is almost constant. Time labels are uneven. Two bars can represent very different amounts of clock time.
How traders use it
Range bars are used to normalise volatility: a stop of two bars means two ranges, in a fast hour or a slow one. You still need a time chart to see the session open and the close.
Common mistakes
Treating a range bar as a one-minute candle. Its "close" is the moment the range filled, which may be seconds or hours.
Limitations
Gaps can force a bar to open already away from the prior close. Opening auctions and daily limits do not fit the fixed-range idea cleanly.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.