RBARS Crypto Trading Concept – How To Apply and Use RBARS
RBARS Crypto Trading Concept - How To Apply and Use RBARS
RBARS (Rampage Bars) is a personal tool I created myself.
Created in early 2018 I have found them to be the best trading tool for entries, exits and finding ranges. Very powerful if used from higher time frames. I have only shared these with a few select people before, but now I’ll be giving it out to the public.
They spawned from order blocks, so if you’re familiar with them then it’ll be a breeze as they naturally share similar concepts.
I’ll be simply breaking everything down in my own words and hopefully in a very simple way.
From what i’ve seen they are unlocking the matrix of the chart 🙂
Let’s get started…
How to create RBARS
Once you’ve got your chart up, I want you to:
- Go to the left hand side column of tools and click on the third tool box down
- Click ‘Fib Retracement”.
How the standard fib retracement will look
Click on the fib retracement tool and then click anywhere on the chart and it should look like this.
Double click to modify
Double click on the fib retracement tool and a box will come up. We want ‘style’ selected. This is where we’ll be modifying them into RBARS.
Now you want to add these settings.
Save as template
- Click ‘template’ in the bottom left hand corner
- then click ‘save as’
- Type in ‘RBARS’
- Then click ‘save’.
Obviously you can choose whatever colours you like.
Now they’ll be saved as a template and you can use them whenever you want.
When you click ‘save’ and then ‘ok’ they should look like this!
How To Apply RBARS
Now we want to know just where the fuck do we put these RBARS?
RBARS work on all time frames and since higher time frames are key we’ll start there.
RBARS are best when used with support and resistance as confluence.
Lets get the Ethereum 1 week chart and plot where support/resistance is.
Plot support and resistance
It is important we first look for support/resistance as this is where RBARS are most powerful.
Now that we’ve done this, we look for a candle on or near support/resistance which is followed by a candle that either;
- Breaks market structure and creates a new high/low
- Has strong rejection/bearish break in market structure
- Has a strong bounce/bullish break in market structure
This will be where either be a ‘bullish RBAR’ or a ‘bearish RBAR’ originates.
Here is an example of a bearish RBAR.
- Candle where RBAR originates is followed by a strong rejection.
- Candle is on a support/resistance.
For bigger full candles, we want to place the RBARs on the candle bodies and avoid wicks. This is because this is where the majority of the volume has been traded. If the candles are small, we use the wicks. Example further down.
Here is an example of a bullish RBAR.
- Candle where RBAR originates is followed by a strong break in market structure producing a higher high.
- Candle is on a support/resistance.
Example of RBAR without Support/Resistance confluence
Here is an example of a bearish RBAR without confluence from support/resistance. Same principles are applied.
Where do I place my orders?
You want to be placing your orders mainly on the bars. This is where you’ll be sniping entries. How much % of a position size is up to you.
Generally I will be putting 20% of position size on the top bar on a high time frame RBAR, 30% in the mid bar and the other 40% on the lower bar and 10% on the lower edge.
These numbers change with every trade however and this should only be used as a rough guideline.
If the candle goes straight through and a close happens on lower time frame candles (12H, 6hour, 4hour) like it did on the 3rd test in the picture below, I will cut the position.
The first time an RBAR is tested the more powerful and reliable it is.
Second tests are generally still ok and orders should be positioned by higher % lower down.
A 3rd test and you shouldn’t be putting orders there anymore.
Obviously every trade is different and one size doesn’t fit all.
The first test of the RBAR produced a 35% move up.
The second test followed a weaker 19% move up.
The third test it got destroyed. You don’t want to be placing an order on the 3rd test, it’s generally going to get nuked.
Live running example (how will it turn out?)
In practise this would be the first short opportunity utilising RBARs.
- High time frame support/resistance breaks
- Bullish RBAR on 3rd touch gets nuked
- Lower low created on macro
- Price comes back to bearish RBAR
- Short opportunity on first touch
RBARs are great for identifying levels of ranges. A good example is the range that developed after the blowoff top from bitcoin in 2017.
The weekly down candle that was then followed by the up move was key for the bitcoin range that then went on for some time.
Going down into the 1 day candle time frame we can see how these levels were so well respected and a range was formed.
Forming levels and ranges
As you see the 1W bullish RBAR then went on to form well respected levels and created a range on the daily time frame. First and second tests were good long opportunities but after that you know it’s getting more bearish. (I know, easy in hindsight.)
Levels stay relevant
As we see these levels are still key! Another test here however for bitcoin wouldn’t be good and likely that we see lower prices.
Lower Time Frame RBARS and Altcoins
RBAR’s work on every time frame and on every chart as seen in the TRX example above.
Finding Entries with Lower Time Frame RBARS from Higher Time Frame RBARS
Daily time frame RBAR
Here is an example of a candle body with no candle, so we use the wicks for the RBAR.
Once we identify where our bearish RBAR is on the daily time frame (The up candle before the down move) we can move into lower time frames to see where price breaks down to snipe entries.
We’ll use the 4H.
4H time frame RBAR inside Daily RBAR
Here we see where the 4H Bearish RBAR forms originating from the daily bearish RBAR.
This provided two sniper entries.
- RBARS should ultimately be used with the trend.
- RBARS are most powerful when placed around high time frame support/resistance levels
- First test of an RBAR is most powerful and provides best entries
- RBARS getting tested for a 3rd time is a good sign of weakness
- RBARS show levels in a range
- The higher the time frame the better however..
- RBARS can be used on any time frame