Trading NR7 setup

[AW10]

Is there any way we can know the direction of the breakout?.....I am still struggling figuring out this....

Do you believe that we can (or anybody else) predict what market is going to do tomorrow ?

In my view, Trading is not be being perfect in your analysis. It is about identifying the high probability opportunities and then taking a trade.

If you use Options, then you can use some direction neutral strategies to take position on the day when NR7 is building up. But as a future/ stock trader, We are better off listening to the market and then taking action.

Happy Trading

 

[Satyen]

as other system this NR 7 also fails many time. it means some time some system or method works or some time other system works. its ur luck wht u get or loose but no system or method is workable. some one make NR7 some will make NR9 . it is only for satisfaction of mind that today it works later if it doesnt work than other system works.

We always try to find out when not to trade ........ but these concepts of contraction /Expansion of market nice to find When to trade ......... We may have one /two trade goes into loss but if we trade some time after these contraction sum of trades shud be profitable as greatest problem of trend trading is Sideways movement otherwise EMAs can work also

Just my view

 

[WOD]

Do you believe that we can (or anybody else) predict what market is going to do tomorrow ?

In my view, Trading is not be being perfect in your analysis. It is about identifying the high probability opportunities and then taking a trade.

If you use Options, then you can use some direction neutral strategies to take position on the day when NR7 is building up. But as a future/ stock trader, We are better off listening to the market and then taking action.

Happy Trading

Certainly not....we can never predict the markets (I have learened it hardway).......but I suppose TA's still use patterns and indicator's to anticipate next move of the markets......that's why I was thinking on line of using some pattern or indicator to anticipate market direction following NR7 day...

 

[mrnakar]

HI , AW10 sorry but can u pl guide me on 24th april & 27th april (Both are NR 7 days ) what should We Do @ that level ? should buy or should Sell?

 

[AW10]

Thanks Satya for clarification. Good to see your posts on this thread.

Happy Trading.

 

[AW10]

WOD, I haven't come across any TA indicator/ pattern that anticipate market 100% of the time. When we use any setup based on TA indicators/ patterns, we are still dealing with probabilities. Developing proabability oriented thinking is crux of developing trader's mindset. As a human being, we don't think in probabilities and that is one of the reason why 90% people loose here.
NR7 is a simple and easy way to find out that mkt has contracted, hence expansion is eminent. You can also use Bollinger band / ATR / Standard deviation etc to get the same message.
Finally it is trader's own preference to select the toolset to read the market.

Once we have found that breakout / expansion is just around the corner, then each of us can decide how to benefit for it. As a breakout trader, we don't care for direction of breakout but have plan to trade whichever way it breaks-out. More important then that, we also know that there is something called false breakout.. and hence have plan to safegaurd us against that as well.
Check out following post , where I have mentioned about how I trade breakout. and reverse position on false breakout.

http://www.traderji.com/technical-analysis/27956-scalping-strategies-2.html#post307876

We can trade false breakout only when we have trust in our system and accept the reality of trading. Otherwise, we will be sitting and moaning about being stopped out and would have missed
a great trade signal there.

Hope this helps.
Happy Trading

 

[WOD]

WOD, I haven't come across any TA indicator/ pattern that anticipate market 100% of the time. When we use any setup based on TA indicators/ patterns, we are still dealing with probabilities. Developing proabability oriented thinking is crux of developing trader's mindset. As a human being, we don't think in probabilities and that is one of the reason why 90% people loose here.
NR7 is a simple and easy way to find out that mkt has contracted, hence expansion is eminent. You can also use Bollinger band / ATR / Standard deviation etc to get the same message.
Finally it is trader's own preference to select the toolset to read the market.

Once we have found that breakout / expansion is just around the corner, then each of us can decide how to benefit for it. As a breakout trader, we don't care for direction of breakout but have plan to trade whichever way it breaks-out. More important then that, we also know that there is something called false breakout.. and hence have plan to safegaurd us against that as well.
Check out following post , where I have mentioned about how I trade breakout. and reverse position on false breakout.

http://www.traderji.com/technical-analysis/27956-scalping-strategies-2.html#post307876

We can trade false breakout only when we have trust in our system and accept the reality of trading. Otherwise, we will be sitting and moaning about being stopped out and would have missed
a great trade signal there.

Hope this helps.
Happy Trading

Yup you are right AW10, may be I have forgotten this fact for some time.

You see, this is what happens to me. I have taken some great intraday trades (waiting for a breakout from sideways moves and then following the brekout); based on just 5 min chart and concept of contraction and expansion (just like NR7).

But sometimes, I have made stupid mistakes like anticipating the breakout while nifty is moving sideways or even have taken trades against the breakout (which has hurt me quite a lot).....Seems like I dont trust my system enough.....

I have got a good system though; but its not the system that hurting me but rather some psychological aspect of mine that are hurting me........Need to get out of this as quickly as possible......Trying hard and will be successful......

Thanks.

 

[AW10]

Yup you are right AW10, may be I have forgotten this fact for some time.

You see, this is what happens to me. I have taken some great intraday trades (waiting for a breakout from sideways moves and then following the brekout); based on just 5 min chart and concept of contraction and expansion (just like NR7).

But sometimes, I have made stupid mistakes like anticipating the breakout while nifty is moving sideways or even have taken trades against the breakout (which has hurt me quite a lot).....Seems like I dont trust my system enough.....

I have got a good system though; but its not the system that hurting me but rather some psychological aspect of mine that are hurting me........Need to get out of this as quickly as possible......Trying hard and will be successful......

Thanks.

All the best WOD. I know how difficult it can be to correct our mental setup and get into the new habit. Somewhere I read it, that it takes atleast 30 days of practicing new habit to make it
part of our system. Till that time, our old habits have chance of coming back. again.

Sometime, it makes sense to find or develop a trading system that fits u. It could be easier for your psychology to adopt this new system as thats what your subconscious mind is good at doing.
(eg - if by nature I am contrarian and want to exactly opposite of what market is doing, then find out setup that identifies trend weakness / backtest that / support it with right risk mgmt steps and boom u have a system that your mind wants. Atleast with this type of system in your arsenal, u can tell your mind to shutup on contrarian trade because that system has not given a signal. This approach has helped
me in controling some of repeatitive trading errors... ie. find out the solution but accepting them, rather then beating us to correct them.)

I am sure with your committment and dedication to trading, u will be able to overcome this challange and develop right trading habits soon.

Happy Trading

 

[WOD]

Can some one please let me know a website where I can view live 60 min charts (for free).....

Investbulls offers this service for a monthly charge and same is the case with icharts........Yahoo don't offer 60 min charts (please correct me if I am wrong).....

Thanks.

 

[WOD]

What happening now, is it a genuine NR7 breakdown.....looks like so.....please comment guys......