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Assume that you want the Total Bars to be 10, the Range Bars to be 5, and the % Variation to be 2. Also assume that you have the above ten bars of data, where the first five bars have highs of 30 and lows of 10, and the last five bars have highs of 25 and lows of 15. The calculation of the trading range would proceed as follows:

1. Calculate the average bar range for the last 10 bars:

(20 + 20 + 20 + 20 + 20 + 10 + 10 + 10 + 10 + 10) / 10 = 15

2. Multiply the average bar range by the % variation:

15 * 1.02 = 15.3

3. Calculate the average midpoint of the bar ranges for the last 5 bars:

25 - 15 = 10- the range for each of the last 5 bars

10 / 2 = 5- half the range for each of the last 5 bars

15 + 5 = 20- the midpoint move for each of the last 5 bars

(20 + 20 + 20 + 20 + 20) / 5 = 20

4. Calculate the high and low values for the testing range:

High = 20 + (15.3 / 2) = 27.65

Low = 20 - (15.3 / 2) = 12.35

5. Test the highs and lows for the last 5 bars to see if they fall in the range, which in this case, they do.