Range bars build only on price movement, not time, making VWAP crosses cleaner and more significant. Trade VWAP reclaims on range bars for noise-filtered intraday signals with naturally tight stops.
- Range bar chart active (fixed range per bar)
- Price has traded below VWAP for several range bars
- A range bar closes back above VWAP (the reclaim bar)
- Enter long on close of reclaim bar
- Stop: below the low of the reclaim bar (exactly 1 range size)
- Target: session high, or 2ร range size
- Price above VWAP for several bars, then breaks below
- Range bar closes below VWAP
- Enter short on close, stop above reclaim bar high
- Target: session low
Range bars normalize volatility. Each bar represents the same price movement regardless of how long it took. This makes VWAP cross signals much more reliable than on time-based charts where fast moves create noisy crosses.