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Bounce Bars - Custom Bar Type

Unlike standard time-based charts (like 5-minute bars), BounceBars are price-action bars built from tick data. A new bar only forms when price moves a specific distance.

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1. The Three Key Parameters

When you select BounceBars in your NinjaTrader 8 Chart Selection or Strategy settings, you will see three primary inputs. These are the "DNA" of your chart:

A. Tick Trend (Value)

  • What it is: The distance (in ticks) price must move to continue the current trend.

  • How it works: If you are in an uptrend (green bars), price must move up by this many ticks to close the current bar and start a new one. Small movements within this range are ignored, keeping the chart clean.

B. Tick Reversal (Value2)

  • What it is: The distance (in ticks) price must move in the opposite direction to create a reversal bar.

  • How it works: Usually, this value is set higher than the Tick Trend. It requires a stronger move against the current trend to trigger a change in bar color/direction. This prevents "choppy" sideways price action from creating false signals.

C. Open Offset (Base Bars Period Value)

  • What it is: A visual setting that determines where the "Open" of the next candle is placed.

  • How it works: The code creates a "Fake Open." Instead of the new bar opening exactly where the last one closed, it is offset by this many ticks.

  • Why use it? It gives the candles a consistent body size and makes "Bounce" setups (rejection wicks) much easier to identify visually.

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2. How the Bars Form (Logic)

BounceBars are asymmetric. They behave differently depending on whether price is following the trend or fighting it:

  1. Trend Continuation: When price hits the Tick Trend target, the bar closes. The next bar opens at the Open Offset distance and continues in the same direction.

  2. Reversal: If price fails to hit the trend target and instead drops by the Tick Reversal amount, the bar closes as a reversal.

  3. The "Fake Open": This unique feature ensures that even if price is moving fast, the open/close relationship of the bars remains mathematically consistent for the strategy's EMA calculations.

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3. Recommended Setup

Because the Bounce Trader Algo relies on specific EMA angulation and candle shapes, the way you set these bars is critical.

  • For Scalping (Fast): Tick Trend: 4 | Tick Reversal: 8 | Open Offset: 4

  • For Day Trading (Standard): Tick Trend: 5 | Tick Reversal: 10 | Open Offset: 5

  • For Volatile Markets (MNQ/NQ): Tick Trend: 8 | Tick Reversal: 16 | Open Offset: 8

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4. Why use BounceBars with the Algo?

The Bounce Trader Algo was built to "read" these bars. Standard minute bars often look messy and make EMAs look flat. BounceBars:

  • Smooth out EMAs: Because time is removed from the equation, EMAs show much clearer "angulation" (slope).

  • Standardize Wicks: The Open Offset ensures that rejection wicks (the "bounce") are clearly defined, which is a requirement for setups like the 34R or Candy Cane.

  • Focus on Momentum: You only see a new bar when the market is actually moving, helping the strategy avoid trading during "dead" lunch hours or flat ranges.

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5. Technical Specifications

  • Built From: Tick Data (Ensure you have a high-quality tick data feed).

  • Intraday Only: These bars are designed for day trading and will reset on a new trading session.

  • Look Back: By default, the bars load 3 days of history to ensure EMAs are calculated correctly when the chart opens.

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