Range Bars

[Dobbes]

How are range bars calculated? I know its supposed to be price goes X range, then the bar prints, but the closes do not line up with subsequent bars' opens and some bars have closes that are not at their highs or lows. How can this be?

[NinjaTrader_Ray]

Right, opens and close values will never line up on a range bar.

[Dobbes]

So then how are the bars calculated from the tick data? My interpretation was that after the price has gone X range, the bar would close, so why am I seeing closes that are not at highs and lows? It should look like a Renko chart from my understanding.

[NinjaTrader_Ray]

A bar has a range of X, once X has been penetrated, then a new bar is formed. It can only be penetrated if the new tick is outside of the prior range.

[Dobbes]

Ah, I see. So if the ticks gap, when the range is penetrated, that would explain why it looks the way it does.

[Dobbes]

I just need a final confirmation before I start a lengthy procedure here: Range bars are calculated straight from the tick data, correct?

[NinjaTrader_Jessica]

That is correct.

Here is a link you might find helpful:

http://www.ninjatrader-support.com/HelpGuideV6/HowDoesNinjaTraderBuildChartBars.html