Trading NR21 Setup, Best method for Scalping

[krishan prakash saxena]

Today ONGC FUTURE(MAY 2013) - NR21.
HIGH 323.4
LOW 319.75
L.T.P. 321.95
It is likely to touch 323, but if it crosses 323.4, there are possibilities of expanding.

 

[traderite]

Thanks....
With an added "0" the list is trimmed to :

FUTURE RETAIL LIMITED
HEXAWARE TECHNOL
KINGFISHER AIRLINES LIMITED
MANAPPURAM FINANCE LTD
TV18 BROADCAST LTD

Hi and Lo of these are there in the previous Post.

When the list becomes so lengthy , how do you finally choose a stock to trade for the day ?

 

[rkkarnani]

When the list becomes so lengthy , how do you finally choose a stock to trade for the day ?

No idea !!

Maybe look at the past movements in the stock after NR21, and decide!!

 

[krishan prakash saxena]

Some criteria could be -
1. Most liquid stocks
2. Having an ADX value of 15-25.

Please tell if there is any excel sheet to calculate ADX value or it is already calculated in NSE or any other websight

 

[rkkarnani]

Please tell if there is any excel sheet to calculate ADX value or it is already calculated in NSE or any other websight

Maybe of help, have a look :

http://technical.traders.com/tradersonline/display.asp?art=278

 

[nids1975]

When the list becomes so lengthy , how do you finally choose a stock to trade for the day ?

Select high liquid stocks and select stocks which were in good trend from last 3-4 days.

By doing above we have actually selected stocks which were in good trend but had a pause today, now tomorrow they can either resume their trend(if broken in direction of trend) or can give reversal from here. In any case movement will be enough for scalping trade.


** Some trader also select stocks which formed Inside bar today

 

[rkkarnani]

Select high liquid stocks and select stocks which were in good trend from last 3-4 days.

By doing above we have actually selected stocks which were in good trend but had a pause today, now tomorrow they can either resume their trend(if broken in direction of trend) or can give reversal from here. In any case movement will be enough for scalping trade.


** Some trader also select stocks which formed Inside bar today

Nids, while eye balling charts marked with NR21, I found that mostly NR21 occurs as an 'inside bar'!

 

[nids1975]

Nids, while eye balling charts marked with NR21, I found that mostly NR21 occurs as an 'inside bar'!

Quite true

 

[rajus19]

Hi All

NR21 means Narrow Range bar of last 21 days.

Many people are profitably trading on NR4 and NR7 setup. NR21 is just a next step of these setups.

Why we should follow NR21 instead of NR4 / NR7 ?

Too many stocks comes while scanning for NR4/NR7 which creates confusion which one to select for next day trading and which one to leave. Too often we see that our selected stock on NR7 did not performed well but the one which we did not traded is doing very well.

Stocks falling in NR21 are lesser in comparison of NR4 and NR7 so we have to track lesser stocks


Some times NR4 and NR7 just happen because over all market traded in small range or may be because particular sector traded in small range.
This problem is reduced to greater extent in NR21

How to Trade these setups

Buy above high of NR21 or short below low of NR21
Stop-loss: 1 %
Target 1%

How to Find these NR21 stocks

1) Many members are already calculating NR7 in excel same thing can be done for NR21 with little modification. I hope some members will come forward to help us.

or
2) If you are using Amibroker then some member can make AFL for this, you can request in Amibroker section. We have many members with helping nature.

or
3) I personally using and actually found this system in Keystocks software which has been created by one of our traderji member

Free version of Keystocks i.e Keystocks-Lite is available without any registration or Activation. At present on their site it is written that software is free for one Year but when i contacted, He said he will be providing it free for ever.

Benefit of this Keystocks-Lite

i) Data is downloaded and updated by just one click
ii) With Excel or AMI we have to first scan then view those stocks in chart by clicking them one by one while in Keystocks-lite scan results comes directly in Charts Images. So its real time saver, i have attached an image for explanation.

You can download Keystocks-Lite from here http://www.traderji.com/software/86...ystocks-lite-available-free-2.html#post804597

It looks good, Can you please let me know about the success rate in this strategy.

Thanks,
Srini

 

[nids1975]

It looks good, Can you please let me know about the success rate in this strategy.

Thanks,
Srini

so far its very good in high liquid and trending stocks, All nr21 is also nr7 so minimum its par at nr7 what can be theoretically proven. Either do paper trading for some days and decide at your self or just google Trading NR21 Setup .