Trading NR7 setup

[mohhnow]

friends,
This entire thread I have put as word doc file. No pictures.
Plz try & see if you are able to download it.
Afterwards we will workout a way to format it and add appropriate images to make it a good study material under guidance & supervision of AW10 ji.

http://www.mediafire.com/?rxjznjy4qvz

http://www.mediafire.com/file/rxjznjy4qvz/aw10 nr7setup traderji till 20091230 nopic.doc

Plz give your feedback, so that we can improve on it.
with regards
Moh

ps: Request to AW10 ji to suprevise & guide, thanks

 

[AW10]

aw10 sir,
now that we are on 2 nr7 days, following the ws7 big bull bar, may be there is a possiblity to quick pull back to 50dma, sir ? before coming up.

And, so far 3 times below 50sma had been just like a spike dip and pull up...
------

also, I have the doc file as about 500pages.
with regards
Moh

It could be pullback or straightway upside breakout of consolidation range 5220-5150.
Even if we have retracement then there are many other levels above 50dma like 5150 level which was the high of ealier resistance zone, then various FIB levels of current move from 4900 to 5220, big psychological level of 5000, 20dma etc.
If the strength (i.e. demand) of last WS7 bar is genuine then it will not allow price to drop easily.

Though 50 dma is getting flattened now, hence the strength of uptrend is weakening and it is getting closer to spot price level. So lets take it as it comes without getting biased about retest and break of 50dma.

Also don't forget that we are entering the bullish season of the year as pre-budget rally. Janurary will be filled with all +ive economic news due to christmas sentiments so if there is no -ive surprise then we might wait for some more time before 50dma gets tested again.

Lets see as market unfolds later and plan for next few bars to play

Happy Trading

 

[mohhnow]

aw10 sir,

last time after nr7 day I took a long on nextday going gap up above the nr7 high, with a tight stoploss, & got the momentum from beginning.
May be tomorrow, can try with a tight stoploss, a long if todays high is taken out, or short if todays low breaks down. [expectation of expansion after 2 contractions, with a tight stoploss to take care of risk]
And then take it as the day develops.

29th happens to be PivotHi.

Whats your advice on such thinking, sir?

ps: Your explanations are downtoearth simple for us to understand. Thanks for that.
It puts us in proper perspect to realilty.

 

[rohangawale]

Do you have an 'exploration' to identify 2,3,4 NR7 !! or we have to look for them manually?
If we have to look for some specific stocks , can help you with a few stocks if you can identify the same!!

Hi Rkkarnani,
i dont have any exploration to identify 2,3,4,NR7 stks.
im looking at them manually like,
today after scanning chart, i look at that chart and see weather its having prev NR7 day also. if so then will add it to next days excel sheet. else it will be NR7 stk.
i think this exploration will not be much use ful for me for 2,3,4NR7 as already imentioned im intraday player and im interested in next days move, not in swing trading.
jo hai aj kamao aaur bahar ho jao, aj kamao aur aj khao, kal k liye kal k mkt me kamayenge. bas thats my attitude as of now.
but will change it to swing and short term trading once my capital is bulit up to that extend, i.e more than 1 lac.
Waiting for that day soon in 2010......................

 

[rohangawale]

Hi Rohan. That's a very interesting approach to trade nr7. I have never traded nifty futures or stocks but just out of curiosity wanted to find out if you guys follow up on the nr7 flagged financial assets.

I trade commodities and its a very common phenomena which repeats time after time. So i just wanted to check with you guys if there is any follow up. This one particular behavior is very rare but extremely productive when nr7 triggers and then the next bar is an inside bar thereby making it nr8i. Some of the best moves have occurred in commodities when nr7 does not respond immediately and keeps consolidating in a narrow range if not narrower.

Anyways thank you for the reply rohan and thanks anup for starting such a wonderful thread. In this game of probabilities nr7 is definitely a tool that every trader should try to have in his/her armory.

Cheers and Happy Trading

This thanks is just for AW10 for starting this wonderful thread and helping the whole community and showing everytrader a new way of looking at breakout in different angle.
its a simple and very powerful approach to trade stks.

inangia,
i never traded commodities and not planning to do so. so i dont know the approach in commodities, but if neeeded any help in stks, then can try my best to help in that.

 

[rohangawale]

Rohan, what I was referring to not 2NR7 or 3NR7 .. but stock that has given NR7 today, no breakout tomorrow but no NR7 as well. So this stock will be off your list tomorrow. Thogh the effect of NR7 is yet to be seen. Inangia was asking about such filtering.

If you are not looking at them now, then it is fine. That is more suitable for Swing trade, I think. My observation is everyday u get atleast 3 to 4 stocks minimum which is sufficient to trade tomorrow.

Happy Trading

AW10,
ya i got ur point what u wanted to say.
i.e even though we dont get a valid breakout and not NR7 but still the skt is in that range and not got out of that. i really not able to track that. i.e im not much concerned abt the next days range, i just trade them at trading hrs, and after downloading eod data, i just concentrate on new NR7 triggers.
ya daily im getting min 3-4 stks for next day and im just behing that and nifty till next day 3.30 pm.

 

[rohangawale]

Rohan, what I was referring to not 2NR7 or 3NR7 .. but stock that has given NR7 today, no breakout tomorrow but no NR7 as well. So this stock will be off your list tomorrow. Thogh the effect of NR7 is yet to be seen. Inangia was asking about such filtering.

If you are not looking at them now, then it is fine. That is more suitable for Swing trade, I think. My observation is everyday u get atleast 3 to 4 stocks minimum which is sufficient to trade tomorrow.

Happy Trading

AW10,
ya i got ur point what u wanted to say.
i.e even though we dont get a valid breakout and not NR7 but still the skt is in that range and not got out of that. i really not able to track that. i.e im not much concerned abt the next days range, i just trade them at trading hrs, and after downloading eod data, i just concentrate on new NR7 triggers.
ya daily im getting min 3-4 stks for next day and im just behing that and nifty till next day 3.30 pm.

 

[mohhnow]

hi rogan,
plz check the Lo values.

 

[rkkarnani]

`AW, As u r so much into Options, any view which "Stock' options are worth looking at with NR strategy!!! Basically wish to know, which ones are liquid enough to have a see!!!

 

[rohangawale]

NR7 Stocks Triggered on 30th Dec:

[B]STOCK		HIGH		LOW[/B]
NIFTY		5197.05		5160.1
BHARTI 		329.9		324.1
DLF		369.90		363.90
M & M		1072		1052.8
ONGC		1188.85		1172
RANBAXY		523.7		515.1
REL CAP		863.5		850.1
RIL		1085		1069.5
STERLITE	865.5		854.5
SUN PHARMACE	1530		1504.05
SUZLON		91.7		89.4